Anglo American approves $1,2bn Brazil nickel mine
The world's third-largest miner, Anglo American, on Thursday approved the $1,2-billion Barro Alto nickel mine in Brazil.
The company said in a statement that construction on the mine was due to start in 2007, with production scheduled to start in 2010, ramping up to full capacity during 2011. Barro Alto would produce an average of 36 000 t/y of nickel, in the form of ferronickel over 26 years.
The deposit contains resources of 116,2-million tons, at an average grade of 1,54% nickel, of which 62,4-million t at an average grade of 1,66% nickel would be mined by conventional openpit methods and treated over a 26-year period.
Part of the Barro Alto deposit is currently being mined to feed Anglo American's Codemin plant in Niquelândia, Goiás. Ore from Barro Alto is trucked to Codemin for processing in the existing facilities. This has extended the life of Codemin and permitted an increase in production from 6 000 t/y to 10 000 t/y, allowing Codemin to benefit further from the strong nickel price.
Anglo American said that Barro Alto ore would continue to be transported to Codemin throughout the life of the project.
Construction of Barro Alto would include extending the existing openpit mine operation and constructing a new ferronickel smelter and refinery.
Outgoing CEO Tony Trahar commented that the Barro Alto project was an “exciting greenfield project in a country where Anglo American has longstanding nickel project management and operating experience”.
“The production from Barro Alto will contribute significantly to a potential doubling of the group's nickel production to around 90 000 t/y by 2011.”
The Barro Alto nickel deposit was discovered in the late 1960s and Anglo American completed its purchase of the deposit for $35-million in 2002. A feasibility study was initiated in 2004 and completed in September 2006.
(Published by Mining Weekly, December 07, 2006)