Brazil Minerals announces first iron project, technology partnership development
Brazil Minerals announced that it has obtained the rights to an iron project area with 4,120 acres in the Iron Quadrangle, one of the iron regions with multiple operating mines. Iron ore is in demand with sales of Brazilian iron ore for export or for use by local steelmakers. Recently, the price of iron delivered at a foreign port spiked to $109 per ton. Brazil Minerals' claim holds potential for several reasons, including its location in proximity to one of the initial iron mines from Vale. The local geology shows possible secondary deposits, i.e., occurrences of eluvial/colluvial iron mineralization with potential for lump ore production. This type of product is aimed at the domestic market and, in general, presents a combination of low production cost and relatively high margins, when compared with iron production for export. As part of the agreement in which Brazil Minerals was advised, at no initial cost, regarding this iron opportunity by a local private enterprise, the company will evaluate technology solutions initially developed by this enterprise which are aimed at minimizing the environmental disturbances of an iron mine. These solutions center on processing without water and enabling smaller scale operations to increase profitability and product quality. Refinements may be co-developed during this technology partnership. As soon as it is feasible, Brazil Minerals plans to proceed with geological studies of the area to ascertain various aspects of the mineral right, including quantification of mineralization and reserve potential.