Bayóvar Phosphate Project, Peru

Vale, the second largest mining company in the world, owns the Bayovar Phosphate project located in the Sechura desert in Piura, Peru. The Bayovar mine is an open-pit mine with a reserve base of 238mt of phosphate.

The mine has an estimated life of 27 years. The project is expected to produce 3.9 mta of phosphate concentrate with a minimum grade of 29% of phosphorus pentoxide, which is mostly used in fertilisers. Vale will invest $479m in the project, which is scheduled to start production in 2010.

The mine will be operated by Vale's subsidiary, Miski Mayo. Vale gained the Bayovar project in a public auction in 2005 after having committed to build the project within five years. The cornerstone for the project was laid by Vale on 8 September 2008.

The project includes construction of a phosphate concentrating plant, a 40km highway for the exit of production, a 5km conveyor in the dock, drying and storage for loading, a port with capacity to ship 7.9mta and seawater desalination plant. The facilities are expected to occupy an area of 8,300h. Vale has already started construction of the concentrating plant and plans to complete it by 2010.

Vale will export the processed phosphate to South and North Americas, Oceania and Asia. In the long-term, Vale will market phosphates to Brazil. The project is expected to generate 2,000 jobs during construction and 725 jobs at the operation stage.

ORE PROCESSING

The mined ore passes through a concentrating process consisting of successive stages of washing and gravimetric separations using seawater. The process will consume 3,072m3/h of water a day. The final stage of the process will include washing with desalinated water to remove the salts present in the concentrate. The residues from the process will contain fine and coarse tailings. During the process no chemical reagents will be used at any stage.

Processing of the ore will take place in the desalination plant which will ensure non-interference of water resources in the region. The plant will also enable preservation of groundwater for people of Sechura.

TRANSPORT AND HANDLING

The processed phosphate will be exported through the port at Piura. Odebrecht Peru, Brazil's biggest construction group, was awarded the contract to build the port between Punta Laguna and Punta Aguja in Sechura Province, 4km from the phosphate plant. The port will comprise a 16m-wide and 187m-long cargo platform and is expected to start operations in July 2010.

In April 2009, TAIM Weser was given the contract to build the conveyor belts and a shiploader with a capacity of 3,500t/h at the port. TAIM Weser is a company specialising in bulk handling equipment.

The conveyor belts will enable the processed phosphate to be loaded into ships. The conveyor belts and shiploader are expected to commence operations in March 2010.

TAIM Weser is also responsible for rendering a fully automated facility with a capacity of 20,000dwt to 75,000dwt. The facility will enable phosphate to be transported and loaded into ships. The facility will be designed for grain sizes of 0.8-0.053mm and a material density of 1.4-1.6 t/m3. The facility moves from the ground through a 480m-long tubular belt conveyor to the dock. The raw material is then dumped into a 183.72m-long conveyor which runs parallel to the edge of the dock and a 162m-long tipper. The material is then tipped into another conveyor that connects with the loader.

The loading movements of the facility can be controlled from the control cabin or can be radio-controlled. The facility is fitted with its own PLC and includes other equipment such as limit switches, an anemometer and level sensors.

ENVIRONMENT

Vale submitted an Environmental Impact Assessment study to the Peruvian Ministry of Energy and Mines in 2007, which was approved in April 2008. The EIA found that impact on the ground will be minimal during the construction and operation phase. Impact on air quality in terms of generation of particulate matter would also be minimal except during quarrying and road building.