Anglo American Ready to Ship from Minas-Rio Mine by End of 2014
London-based miner Anglo American (LSE:AAL) is on pace to ship the first iron ore from its Minas-Rio project by the end of 2014.
"At the end of June, we had completed 95% of the project required to achieve this objective," said CEO Mark Cutifani in the interim results for H1 2014.
Once up and running, the 100 percent owned Minas-Rio mine is expected to produce 27 million tons of iron ore per year.
According to the interim results, construction of the mine is ahead of schedule as several key components of the project have been recently completed.
"The 529 km pipeline to the port at Açu has been laid. At the port, construction is continuing as scheduled and good progress has been made on the breakwater, with 26 of 33 caissons installed for first ore on ship. Further progress continues to be made in obtaining the outstanding licenses required," the report said.
With $6.6 billion invested into the project already, Anglo American is expected to drop an additional $1.2 billion during the second half of 2014.
"This would leave around $1 billion for remaining capital expenditure for 2015, including the full extension of the breakwater, and mine equipment for the ramp up," the report said.
The Minas-Rio mine is located in the state of Minas Gerais, Brazil. The mine will include open-pit mines, a beneficiation plant and a pipeline to the Port of Acu in Rio de Janeiro.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.