Claudio Alves and Paulo Nogueira CA: Director of New Business PN: Head of Marketing LHG MINING
Can you introduce us to Lhg Mining?
PN: Lhg Mining is part of the J&F Group, the largest private conglomerate in Brazil. In July 2022, J&F acquired mining assets from Vale, including the Santa Cruz and Urucum mines, with high quality iron ore and manganese. This complex includes river ports for transporting materials via barge through the Paraguay waterway to ports in Uruguay.
Our investments since the acquisition include growing our team by 200% and revamping processing systems to handle 12 million t/y, now aiming for 16 million t/y. We increased the mobile fleet and logistics capabilities, enhancing waterway transport capacity with new barges and developing ports in Uruguay and Argentina. We are on track to exceed last year's production. We expect around 10 million t/y this year, aiming for 16 million t/y next year, with new processing plants to support this growth. What are the main drivers behind Lhg Mining's rapid growth?
CA: Our competitive edge lies in our significant reserves of high-grade iron ore, totaling 560 million tons with a minimum iron content of 62%. This enables us to produce premium ore exceeding 65% iron content, setting us apart in the market. We are conducting an extensive 80,000-meter drilling campaign to further expand these reserves by year-end. What specific challenges has Lhg Mining encountered as a new entrant in the mining sector?
CA: Our main challenge involves managing complex logistics in a remote region bordering Brazil and Bolivia. Our ore travels 2,500 km along a river route to reach a shallow water port, necessitating innovative solutions to streamline operations and lower costs. On the other hand, our main product is a high grade lump ore with excellent performance in the Blast Furnace, something unique in the market, with a premium that offsets the logistical challenges.
Guido Germani CEO MINERAÇÃO RIO DO NORTE (MRN)
Can you provide updates and recent news from Mineração Rio do Norte?
We are in an extraordinary moment at MRN regarding our mine life extension. In the last 22 months, we delivered the Front-End Loading phase on both the mining project and the transmission line. We have made significant progress in licensing, particularly by concluding interactions with local Quilombo communities. We have received sign offs from the social regulator, confirming that our project is sound and compliant with all social regulations. Licensing for the West Zone is ongoing, and we expect to obtain the necessary licenses by the end of August. This will allow us to move forward with the construction phase and increase our production capacity. We are targeting early 2028 to ramp up production. How are you managing waste and tailings dams?
We use innovative techniques to accelerate the drying process of tailings, transforming them into a brick-like material that is stable and easier to manage. This material can be safely disposed of in mined areas, covered with waste and soil, and then reforested to restore the natural landscape, which reduces the need for new tailings dams and minimizes our environmental footprint.
We are also exploring remote operations for mining, mainly for the big dozers. Additionally, we are in discussions with our Australian partners to remotely operate our mud master equipment, enhancing safety and operational efficiency. These innovations will improve productivity while reducing environmental impact and operational risks. What are your objectives and milestones for the next 12 to 24 months?
Key milestones include starting the transmission line by the end of this year and building roads to the new mines next year. Additionally, we will be finalizing geological work to extend the life of the current mine until the new projects come online.