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November 29, 2019

OZ Minerals to begin construction of Pedra Branca mine in Brazil

Mining firm OZ Minerals has begun construction of its Pedra Branca underground copper-gold mine in the southern part of the Carajás in the Pará state of Brazil.

Mining firm OZ Minerals has begun construction of its Pedra Branca underground copper-gold mine in the southern part of the Carajás in the Pará state of Brazil.

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As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
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It is located 100km south of Parauapebas and 30km east of Canaã.

The latest news comes after the company signed a series of inter-linked strategic agreements with Brazilian iron-ore miner Vale.

These agreements enable OZ Minerals to use Vale’s extensive transport infrastructure and their processing facilities, while gaining access to small and medium high-grade Vale exploration projects in the Carajás.

OZ Minerals said that its Board has granted final investment approval for the approximately one million tonnes per annum (Mtpa) Pedra Branca mine. Decline construction at the mine is expected to start next month.

According to the company, first development ore is slated during the mid of next year.

OZ Minerals Brazil chief executive Carlos Gonzalez said: “The Vale agreements simplify and focus our activities in the Carajás as well as benefitting Vale by increasing its concentrate sales volumes and creating the potential to receive higher grade ore from OZ Minerals Brazil in the future.

“The Vale Carajás concentrate sales agreement utilises Vale’s extensive in-country transport infrastructure which provides logistics and marketing cost savings and simplifies our activities in the region.”

The mine has a net present value (NPV) of $55m for a pre-production capital investment of over $35m and when combined with the concentrate sale to Vale, the NPV is said to increase to approximately $75m.

After the takeover of Avanco Resources in August last year for A$418m ($323.2m), OZ Minerals aimed at transforming the small open-cut Pedra Branca mine into a larger underground operation.

This takeover enables OZ Minerals to access seven mines in the next six years, including Prominent Hill, Carrapateena, West Musgrave, Antas, CentroGold, Pedra Branca and Pantera.

Gonzalez added: “The earn-in agreements with Vale provide the OZ Minerals’ Brazilian operations with the option to purchase two additional exploration projects, providing a pathway to potential future mines in the Carajás.”

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

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