Australia’s South American Ferro Metals is set to commission an iron ore processing plant and mine operation in Minas Gerais, Brazil, next month.

Once commissioned, the plant is expected to produce 60,000 million tons a month of small lump and sinter feed, which will be sold to local manufacturers of pig iron and steel.

The company is also planning to build a plant to recover high-grade ore to produce iron ore concentrate, which it expects to sell to Vale.

The concentration plant is expected to be installed during June 2011, and the rate of production is expected to be 80,000 million tons a month upon installation.