Brazil Minerals, Inc. recently stated has it has acquired the rights to an iron project area with 4,120 acres in the “Quadrilátero Ferrífero” (Iron Quadrangle), one of the world’s leading iron regions with several operating mines. Iron ore is in great demand with robust sales of Brazilian iron ore for export (mostly to China) or for use by local steelmakers. Lately, the price of iron delivered at a foreign port shot up to US$109 per ton, the highest since 2013.
Brazil Minerals’ claim holds potential for a number of reasons, including its position in proximity to one of the original iron mines from Vale S.A., the world’s largest producer of iron. The local geology reveals probable secondary deposits, that is, occurrences of eluvial/colluvial iron mineralization with the prospect for lump ore production. This type of product is aimed at the domestic market and, overall, presents a mixture of low production cost and comparatively high margins, when compared with iron production for trade.
As part of the deal in which Brazil Minerals was advised, at no preliminary cost, concerning this iron opportunity by a local private enterprise, the company will assess state-of-the-art technology solutions originally built by this enterprise which are intended for reducing the environmental impact of an iron mine. These solutions are based on processing without water and facilitating smaller scale operations to boost profitability and quality of product. Refinements may be co-established during this technology partnership.
Once it is achievable, Brazil Minerals plans to carry on with geological studies of the area to determine different aspects of the mineral right, such as quantification of mineralization and reserve potential.