BX 1 - P - Bauxite Deposits in North Brazil - What it takes to make a mine.pptx

auxite Deposits in North Brazil - What it takes to make a mine

1. Bauxite Deposits in North Brazil What it takes to make a Mine

2. This presentation shows: Where Brazilian Amazon Bauxites are found Characteristics of the Deposits Where there are Mines Elements of making mines viable 2

3. Bauxite is found along wide swaths of land on both sides of the Amazon river. It was formed by intense weathering of an ancient land surface. 3

4. Projects have been underway since the 1960’s. 4 The MRN mine opened in 1978; today three major mines are in operation. Interest in development renewed after 1998.

5. Typically, amazon bauxite deposits have a simple basic structure; they sit on remnants of a weathered surface popularly called plateaus. 5

6. The bauxite plateaus are relatively flat topped with area that is measured in square kilometers. 6

7. Brazilian Amazon bauxite deposits are not the highest ranked but respond to simple beneficiation. 7

8. The fundamental driver for a new mine is a market opportunity. 8 MRN Market Factors of the late 60’s early 70’s. Perception of future growth – Club of Rome Political limtations in traditional supply countries Shared Market Risk. Didn´t last long enough to drive new mine. Paragominas and Juruti could not compete with growth potential established for MRN. Next big stimulus comes at the turn of the century.

9. The China phenomenon drove MBP and Juruti. New mines in 2006 and 2009 9 World Aluminium Production IAA Remember 90 - 95% of bauxite is produced as a source for aluminium

10. Bulk bauxite mines also need logistics and infra-structure solutions. 10 MRN MBP Juruti Railway Riverport Full Township Multiple Destinations Pipeline Paragominas Base Single Destination Railway Riverport Fly-in Fly-out Multiple Destination Additional Supporting Factors Goverment support Mining ssystems Environmental Solutions And the odd billion dollars.

11. Doing business in Brazil is normal . 11 Comprehensive and relatively modern pertinent legislation; but subject to changes. Occasional lack of clarity. This requires effort to look after corporate interests. Environmental legislation require top-class solutions for emission control, tailings disposal and minimum interference with protected areas. It is possible to build a skilled work force It is possible to obtain competent engineering and other services.

12. Thank You 12