ANM Approves Project by Sul Americana de Metais (SAM) in Partnership with Lotus Brasil for Mining Complex in Minas Gerais

The State of Minas Gerais Will Feature Another Project in the Mining Sector Following ANM’s Approval of the Future Mining Complex Focused on Sustainability, to Be Installed by Sul Americana de Metais (SAM) and Lotus Brasil in the Region

After a long period of analysis by state agencies, Project Block 8, the future mining complex to be installed in Northern Minas Gerais by Sul Americana de Metais (SAM), a subsidiary of Honbridge Holdings, and Lotus Brasil Comércio e Logística, has received approval from the National Mining Agency (ANM). Thus, for this Wednesday, (01/06), the companies are now seeking the necessary licenses to proceed with the project in the state.

Mining Complex of Sul Americana de Metais (SAM) and Lotus Brasil Receives ANM Approval and Companies Pursue Licenses for the Project

Lotus Brasil and Sul Americana de Metais have finally obtained ANM approval to continue Project Block 8, the future mining complex in Northern Minas Gerais, and are now moving on to the next phases of the initiative. The Integrated Economic Utilization Plan (PIAE) of the enterprise, initially estimated at US$ 2.1 billion, underwent a series of changes following amendments to Brazilian legislation before being approved by ANM, and now the companies are pursuing environmental licenses.

Moreover, Lotus Brasil and SAM have already submitted the necessary requests to the Regional Superintendencies of the Environment (Suprams) and the Superintendency of Priority Projects (Supri) of the State Secretariat for the Environment and Sustainable Development (Semad).

In this way, they await the issuance of the Mining Order from the Ministry of Mines and Energy for the start of the next phase of installing the mining complex in the state. Consequently, the current focus of both is the development of basic engineering and the obtaining of the installation license for the enterprise.

The engineering director of Sul Americana de Metais, Eder de Silvio, commented on the stages of project development up to the approval and said, “The first steps regarding the document were taken in 2012. The analysis was suspended for a time and, in light of the changes in legislation, the company itself requested that ANM halt the work so it could update the information. In the meantime, specifically in August of last year, Project Block 8 was designated as a priority within the Framework for Strategic Minerals Policy of the Federal Government’s Investment Partnerships Program (PPI).”

SAM and Lotus Brasil Await Issuance of the Mining Order to Continue Project Block 8 and Initiate Construction of the Mining Complex

After ANM approved the continuation of Sul Americana de Metais and Lotus Brasil’s project, the companies are awaiting two environmental licenses for the issuance of the Mining Order. This is the final pending step for the companies to begin the construction plan of the mining complex in the northern part of the state over the coming years. With the delivery of the document, they will be able to focus their efforts on accelerating the project more easily.

The enterprise of Sul Americana de Metais and Lotus Brasil was initially named “Salinas Project,” then “Vale do Rio Pardo Project,” and is currently called “Block 8 Project.” Additionally, the structure will consist of a mining complex, a water dam, and a slurry pipeline, focusing on the extraction of low-grade ore (averaging 20% iron) and transforming it into a high-quality product, with an initial annual production of 27.5 million tons.

Finally, the companies expect to deliver a total of 6,200 direct job opportunities during the peak phase of Project Block 8’s implementation and an additional 1,100 jobs during operations, thus ensuring a boost in the socioeconomic development of the state of Minas Gerais.