Brazilian mine and infrastructure projects create jobs

A huge $5 billion Brazilian mine project together with extensive infrastructure developments is expected to create 8,000 jobs Huge export opportunities in Brazil, including equipment for aggregate production and highway construction, are being highlighted by the UK Construction Equipment Association (CEA). UK Trade & Investment (UKTI) has appointed the CEA to deliver a UK Information Share Fair and extended Trade Mission to Brazil to promote a major high value opportunity for UK manufacturers and service pr
June 11, 2012

A huge $5 billion Brazilian mine project together with extensive infrastructure developments is expected to create 8,000 jobs

Huge export opportunities in Brazil, including equipment for aggregate production and highway construction, are being highlighted by the UK 3418 Construction Equipment Association (CEA). The UK Trade & Investment (UKTI) has appointed the CEA to deliver a UK Information Share Fair and extended Trade Mission to Brazil to promote a major high value opportunity for UK manufacturers and service providers.

It is the biggest project that CEA has ever carried out for UKTI, and involves a $US5 billion project for the implementation of a new 470.5 million tonne open pit iron ore mine by a FTSE 100-listed company in the north-east of Brazil together with extensive infrastructure developments.

The project will create some 8,000 direct and indirect jobs.

The Trade Mission (24 May–1 June, 2012) will complement the existing CEA Mission and UK Group at M&T Expo (São Paulo 29 May–2 June) and will visit Salvador, Bahia State and Belo Horizonte.

The Information Share Fair and Mission briefing will take place in Loughborough, County Leicestershire, England (1 or 2 May) and will bring together all interested parties in the mine project to explore the opportunities on offer and showcase UK expertise in relevant sectors.

In addition to the opportunities offered by the mine project, the CEA is working with UKTI in Brazil to deliver a mission programme of meetings with the World Cup Delivery Authority (SECOPA), leading Brazilian contractors, the Brazilian Army, global manufacturers producing in Brazil, Anglo American, Rio Tinto and other end users of construction and mining equipment.

The CEA has a UK Pavilion at the M&T Expo exhibition (for construction and mining equipment) with an information centre on which UK company information can be distributed.

Euroasian Natural Resource Corporation (ENRC) on its US$5 billion Pedra de Ferro mining project has sought assistance from UKTI to identify UK companies that help it meet ambitious targets for first production from the project by the end of 2014.

CEA says that multi-sector equipment and expertise is required for mine development and infrastructure construction; extraction (drilling and stripping); loading and transportation; processing (crushing, milling and floatation); shipping; roadbuilding and a 150km industrial water supply pipeline system.

Further required are transport infrastructure, logistics, rail; new port development; offshore shipping terminal and container terminal; port/materials handling; a 3km conveyor system; environmental consultancy, and education, training and skills.

“This unique opportunity offers a UKTIvalidated high value project with quantifiable prospects for UK manufacturers, contractors and consultants to one of the world’s fastest growing economies. Your company cannot afford to miss out,” says the CEA, which also sees the Brazil Mission and Share Fair as sell out events.

“To show initial interest in attending both the Trade Mission and Share Fair, and to be kept up to date with booking deadlines and other information, email Gill Stirk (<%$Linker:Email000oLinkEmail[email protected]Trade mission and Share Fairfalsemailto:[email protected]truefalse%>).

“Further detailed information on the mine project can be obtained by contacting John Strang at UKTI ([email protected] +55 21 2555 9684), while details on the Trade Mission or Share Fair can be obtained by contacting Joanna Oliver MBE, Director of Global Programmes CEA (<%$Linker:Email000oLinkEmail[email protected]CEAfalsemailto:[email protected]truefalse%>).”

The Pedra de Ferro mining project is being managed by local operating company BAMIN, a 50/50 joint venture between Eurasian Natural Resources from Kazakhstan, and Anglo-Swiss group Zamin Ferrous.

“In keeping with ENRC/BAMIN's desire to deliver a world-class project, UKTI is keen to look at how CEA can help identify ecoefficient technologies and clean development mechanisms.”

Investment in the mining and processing facilities is expected to be around $2 billion with a further $1 billion being invested in a railroad link to the new port facility at Porto Sul.

In total some $5.2 billion Capex investment will be needed by the end of 2014, when the iron ore needs to be produced.

Bahia Mineração’s mine and concentration plant will be located approximately 30km from the city of Caetité and it has a projected annual production of 20 million tonnes of iron ore with

an average iron content of 66% to 68% Fe. The mine will be designed to produce 19.5 million tonnes/year of concentrate. Construction started in the first half of 2011 and will take roughly 2.5 years.

UKTI understands that an EPCM [engineering, construction and procurement management] contractor will have overall responsibility for each element of the project such as rail spurs, water pipeline, mine and port facilities, but may subcontract some elements. A competitive bid for the EPCM is now being undertaken.

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