PERTH (miningweekly.com) − ASX-listed South American Ferro...

PERTH (miningweekly.com) − ASX-listed South American Ferro Metals (SAFM) reported on Monday that the commissioning of the beneficiation plant at its Ponto Verde iron-ore project, in Brazil, had reached an advanced stage.

The refurbishment of the beneficiation plant and facilities had been completed and the commissioning of the plant began on February 5.

SAFM said in a statement that production was steadily increasing and was expected to build-up to a rate of 60 000 t/m, with extra shifts being worked if required, to meet yearly production targets.

The feed rate has also reached 200 t/h, and following the completion of a number of adjustments, SAFM expected to achieve a capacity of 300 /h.

SAFM started its own mining operations at the Ponto Verde project in January, after its short-term mining and supply contract with LGA Mineracao e Siderurgia (LGA) was completed. Run-of-mine ore has been stockpiled to feed the beneficiation plant.

Once fully operational, the Ponto Verde plant would produce upgraded saleable small lumpy and sinter feed products, and SAFM noted that sales negotiations with iron-ore major Vale, as well as local steel producers, were currently under way, with production samples being analysed.

"So far, the product produced has been of excellent quality, with good physical grain size and the iron-ore sold under the LGA contract indicated an iron-ore content of 60%, which is readily saleable," said SAFM.

The company noted that a chemical analysis of the product was due to take place next week.

Ponto Verde project has an exploration target of between 140-million and 150-million tons of hematite rich itabirite, in a range of between 33% and 41% iron.

Initial production would be sold into the domestic market to local steel mills or to large producers such as Vale, as the first phase of the project would have a run-of-mine throughput of around 1,5-million tons a year.

Source:
http://www.miningweekly.com/article/safm-says-ponto-verde-plant-commissioning-advanced-2011-02-14