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Votorantim Novos Negócios Announces Integrated Iron Ore Project in Brazil
06/24/2009 - Sul Americana de Metais SA announces that it will develop an integrated iron ore project in Brazil that will produce 25 mtpa of 65% Fe pellet feed, with initial production expected in 2013.
Sul Americana de Metais SA announced that it is developing an integrated iron ore project in Brazil that is to produce 25 million tonnes/year of 65% Fe pellet feed. Initial production for the new plant is expected in 2013.
Sul Americana has sufficient JORC (Joint Resources and Ore Reserves Committee)-compliant resources in its two principal properties in the State of Minas Gerais to support a mine life in excess of 20 years. It also has potential resources that would significantly increase the mine life. The company has developed an integrated mine-pipeline-port project, the principal elements of which have been reviewed by independent experts.
The company is estimating the capital expenditure necessary to develop the project at approximately USD2.6 billion, which would be incurred between 2010 and 2012. Sul Americana is currently analyzing its financing options, and is considering strategic alternatives to take the project into production.
“We have developed a cost-efficient process route tailored to the specific characteristics of our ore,” said Sul Americana’s Chief Executive, Haroldo Fleischfresser. “This process, together with an efficient logistics system, contributes to an expected FOB cost for pellet feed of less than USD20 per tonne.”
Sul Americana is an investment of Votorantim Novos Negócios, the venture capital and private equity division of Grupo Votorantim, one of Latin America’s largest private industrial conglomerates.
Grupo Votorantim is one of the largest Latin American private industrial conglomerates, with 2008 net revenues of USD19.0 billion, EBITDA of USD4.0 billion, and over 60,000 employees. Founded as a textile company in 1918, the Group has diversified its activities into cement, pulp and paper, orange juice, zinc, nickel and steel. VNN is responsible for the venture capital and private equity investments of the Group.
