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Sul American Metals (SAM) Plans to Implement Iron Ore Exploration Mega Project in Northern Minas Gerais
On Monday, the mining company SAM – Sul American Metals (SAM) signed a commitment agreement aimed at monitoring public prosecutors from the state of Minas Gerais in the environmental licensing process of the low-grade iron ore exploration mega project that the multinational intends to implement in Northern Minas. The large project could receive investments of R$ 11 billion and 6,200 jobs could be created. See also: 25 job vacancies are being offered by a gold mining company in the state of Minas Gerais. Electrician, mechanic, operator, technician, and more are being called
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Signing of the Contract Between the Mining Company and MPMG
The commitment agreement was signed between the subsidiary of the Chinese Honbridge Holdings (based in Hong Kong) and the Public Ministry of Minas Gerais (MPMG). The signing took place at the MPMG headquarters and was attended by Governor Romeu Zema, Attorney General Jarbas Soares Junior, and other authorities.
The Governor of Minas Gerais, Romeu Zema, stated that it will be the first time that Minas Gerais will be extracting low-grade iron ore. According to him, until today, the ventures in the state have always prioritized and operated with higher-grade iron ore. This means a very large mining potential because several other areas of the state, unlike the Iron Quadrilateral, have lower grades, Zema concluded.
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About the Iron Ore Exploration Project of SAM Mining Company in Minas Gerais
The mining company’s project in Minas Gerais is expected to generate about 6,200 direct jobs at the peak of implementation and 1,100 jobs during operation. The company backed by Chinese capital plans to build a mining complex, with a slurry pipeline, two tailings dams, and two water reservoirs in the region, covering four municipalities: Grão Mogol, Padre Carvalho, Fruta de Leite, and Josenópólis.
The goal of the iron ore exploration project is to extract 27.5 million tons of ore annually, processed by a technological process capable of elevating the low 20% iron content – as the material is found in nature – to 66.5%, a high-quality concentrate in demand in the international market. It is worth noting that the mining company’s investment in the so-called Block 8 is R$ 11 billion.
The Construction of a Slurry Pipeline from Minas Gerais to Bahia
The mega project of iron ore exploration will also involve the construction of a slurry pipeline with an extension of 490 kilometers, from Grão Mogol to the Port of Ilhéus in southern Bahia, through which exports will be made.
The project also plans to use water to transport the iron ore through the slurry pipeline to the port. To this end, the mining company intends to build a dam on the Vacaria River, between the municipalities of Grão Mogol and Fruta de Leite.
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