UK Trade & Investment (UKTI) has appointed the CEA to deliver an extended Trade Mission to Brazil for $US5 billion mining and related infrastructure development project

UK Trade & Investment (UKTI) has appointed the CEA (Construction Equipment Association) 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.
The $US5 billion project is for the implementation of a new 470.5 million metric tonne open pit iron ore mine (by a FTSE 100 listed company) in the north east of Brazil together with extensive infrastructure developments.
The Mission (24th May – 1st 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 as well as São Paulo.
Joanna Oliver MBE, Director of Global Programmes at the CEA and trade mission organiser said, “This is a hugely exciting opportunity and different from what we usually do under the UKTI umbrella. It’s an amazing for prospect for UK manufactures, suppliers, contractors and experts in the mining and construction equipment sectors to present themselves to key decision makers in what will be an immense and highly prestigious project in a country that has the 6th biggest and fastest growing economy in the world. I am expecting a great deal of interest in these events – already the mission is 30% full after just three days.”
The Information Share Fair and Mission Briefing will take place in Loughborough on the 1st 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.
Oliver added, “Both the Brazil Mission and Share Fair are bound to be ‘sell out events’ – so we are urging companies to register their interest now!”
Full details will be available shortly via the UKTI web site and with the CEA and partner trade associations.

2011 Brazil Trade Mission Group meets Paulo Oscar Neto – Superintendent of Plant at Odebrecht — with CEA President, Nick Ground and CEA’s director of Global Programmes, Joanna Oliver.
To register your initial interest in attending both the Trade Mission and Share Fair, and to be kept up to date with booking deadlines and other information, please e-mail Gill Stirk –[email protected]
For further detailed information on the Mine project contact John Strang at UKTI – John Strang [email protected] + 55 21 2555 9684
For details on the Trade Mission or Share Fair contact Joanna Oliver MBE – [email protected]
Pedra de Ferro (Bahia Mineração) Mining and Construction Project
Euroasian Natural Resource Corporation (ENRC) on their $5 billion Pedra de Ferro mining project have sought assistance from UKTI to identify UK companies that help them might meet ambitious targets for first production from the project by the end of 2014.
The project is being managed by local operating company BAMIN, a 50:50 JV 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 are especially keen to look at how we can help identify eco-efficient technologies and clean development mechanisms.
The project offers a range of opportunities;

  • Mine development
  • Mine infrastructure construction
  • Extraction (drilling and stripping)
  • Loading and Transportation
  • Processing (crushing, milling and floatation)
  • Shipping
  • Roadbuilding
  • 150 kilometre industrial water supply pipeline system
  • Transport Infrastructure, Logistics, Rail
  • New port development
  • Offshore Shipping Terminal and Container Terminal
  • Port / Materials Handling
  • 3 km conveyor system
  • Environmental Consultancy
  • Education, Training and Skills (the project will create some 8,000 direct and indirect jobs).

Investment in the mining and processing facilities is expected to be around $2 billion. A further $1 billion will be 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 30 km from the city of Caetité.
The projected annual production for Bahia Mineração’s mine is 20 million metric tons of iron ore with an average iron content of 66% to 68% Fe. The mine will be designed to produce 19.5Mt/y of concentrate.
Construction began in the first half of 2011 and will take roughly 2.5 years. The estimated start of operation for the Pedra de Ferro Project will be 2014
UKTI understand that an EPCM contractor will have overall responsibility for each element of the project, rail spurs, water pipeline, mine and port facilities, etc but may subcontract some elements. A competitive bid for the EPCM is being undertaken now and we will keep you up to date on relevant project timelines.
Project components;
Approximately 150 km long pipeline, bordering the BR030 highway, between the cities of Malhada and Caetité, passing through Iuiu, Palmas de Monte Alto and Guanambi. The pipeline will process iron ore through the separation of impurities.
Bahia Mineração already has a preliminary permit from the National Water Agency (ANA) to collect water from the São Francisco River, next to the city of Malhada, which is located 899 km from Salvador. This water is not potable.
UKTI are working with ENRC / BAMIN to get additional details on pipe diameter, water throughput, pump capacity/numbers, treatment requirements etc.
Project Status:
Water supply engineering has been completed and will be implemented by the EPCM. UKTI are working with ENRC / BAMIN with the aim of offering UK suppliers in areas such as pumps, pipes and valves etc.
The iron ore deposit for the Pedra de Ferro has an estimated reserve of 470.5 million metric tons of iron ore with an average iron content of 40%. The mineralized area is between 30 and 120m wide, primarily comprised of:  compact itabirite, friable itabirite, and friable hematite (source SRK Consulting).
In order to extract the iron ore, Bahia Mineração will use the most modern equipment and techniques available on the world market, with the goal of having an extremely efficient and environmentally-sound mining process.
The mine and concentration plant will be comprised of the following structures:

  • Iron ore extraction pit.
  • A mineral processing, waste dump and tailings dam.
  • Operational support areas.

The mining method will be open pit mine with benches of 15 meters high, entailing the following processes per unit: drilling, stripping, loading, and transport.
Drilling and stripping
The extracted ore will be detonated in order to achieve maximum breakage, generating the greatest number of sinter feeds.  This procedure will facilitate a high level of productivity for loading equipment at the lowest operational costs.
In addition, the fragmentation of the ore generating the maximum amount of feed will result in the lowest energy consumption in the crushing and milling processes.
Loading and transport
The iron ore will be transported by loading trucks, off the highway, with capacity to transport 218 metric tons of ore to the concentration plant. Transport will be by 218 mt trucks produced by CAT in the US.
The iron ore will be crushed, milled, processed and concentrated through a flotation and magnetic separation process, where silica, impurities, and other wastes of the process will be removed.
The tailings will be gravity deposited in the tailings dam.

This ore concentrate will be transported to a private shipping terminal and exported to international clients.
Project status:
Basic engineering work has been completed. ENRC BAMIN are running a competitive bid to select the EPCM service provider for the implementation phase.
After concentration the final product will be transported some 430 km from the concentration plant in the Caetité municipality to the private shipping terminal at Ilheus through the Oeste-Lest Integration Railway.
This operation will involve a transportation logistics of total of 430 km linking these two cities and passing through 15 others.
The railway project, will cross 1.5 thousand kilometers across 32 municipalities spread over 1.1 thousand kilometers in Bahia.
The first stage work of the railway linking Caetité to Ilheus began in the first quarter of 2011. The company responsible for the railway construction is Brazil’s federal rail company VALEC, expects to complete the project by July 2012.
Project status:

The rail spurs are not in the Valac project scope and these will be covered by the EPCM contractor. UKTI are working with ENRC / BAMIN / Valac to get further details of the spur length between the port and the mine facilities and the main line, plus details on terrain.
4. OFFSHORE SHIPPING AND CONTAINER TERMINAL – pier, receiving and storage and infrastructure facilities.
A private offshore shipping terminal linked to a container terminal will be constructed in the Aritaguá region at Ilhéus, on the southern coast of Bahia.
The retro-area, a designated area for cargo storage, at Bahia Mineração’s terminal will be divided into two parts:
1. A processing area made up of iron ore receiving an storage facilities. The ore will be taken to the 3.5 km long off-shore shipping pier by covered transport conveyor.
2. The infrastructure area will feature service facilities and utilities, including an operation and control tower, electrical energy substations, administrative buildings for the gate, administration, customs, archives, supply station, workshop, changing rooms, cafeteria, and a medical center.
The off-shore shipping pier will be constructed 3.5 km from the coastline, as the ships that transporting the iron ore can only dock in water deeper than 18 meters.
Project status:
On-shore basic engineering is currently under way. ENRC / BAMIN’s implementation strategy may see them engaging a construction company as the marine works EPC (bridge, pier, breakwater and dredging) which will be under the Port EPCM provider. The EPCM provider will cover the on-shore services such as infrastructure and materials handling. UKTI are working with ENRC / BAMIN to identify relevant construction and equipment supply opportunities and suggest possible companies for the vendor lists.
Other Project components:
5. Environmental consultancy
Environmental Impact Assessment and licensing. It is understood at this time that the company is undertaking the planning for the implementation of natural resources conservation programmes, the adoption of eco-efficient technologies and clean developments mechanisms. We understand that some preliminary work has been completed. UKTI are looking at opportunities around environmental monitoring and other ongoing requirements.
6. Education, Training & skills
During construction, some 8,000 direct and indirect jobs will be created. The operational phase will require 1,800 workers. The company will give priority to the hiring of individuals from within the regions of business. UKTI are looking at opportunities in technical and craft training.
Source: CEA News Room