Avanco Resources will start the stripping of Antas North copper mine in Parauapebas (PA) in September. The activity is part of mine management contract signed with the Australian contractor Maca, hired in July. "Today there are about 300 workers in the field, organized in three groups earthmoving, construction and electromechanical assembly," says the executive director Tony Polglase.
The content found on the field of the development, between 2.5% and 3% copper, is four times higher than that found in Sossego, Vale's copper mine in operation since 2004 and is just over 80 kilometers of the deposit Antas North.
In terms of cost and content, Advancement will be positioned in the first quartile, that is, have one of the most concentrated competitive market, says Polglase, an engineer with nearly 40 years of experience in mining.
The projected production is 45 tons of concentrate per year, with 20% to 30% copper, which should provide about 12 tons of metallic copper. Commissioning is scheduled to begin on February 23, 2016 and we can already see that the mill foundations are almost ready.
Aside from the thickener, which is being manufactured in Sao Paulo by Westech, all the big rigs are on site: the jaw crushers and cone, manufactured by mining Simplex; the filter press made by Metso; and ball mill, produced in the United States.
Assessing ways to reduce capital investment, the Advancement acquired equipment used as sheds, Brazil, and flotation cells in the United States. The total cost of the project will be $ 60 million.
Engineering was contracted with Onix, of Belo Horizonte, which also hosts the team owner of Advancement. "Not a EPCM [form of contract involving engineering, procurement and construction management]. It is a small enterprise, "Polglase said. The executive made an analogy with Troy Resources, a model for building projects leaves with internal staff to manage the work and the integration of engineering and acquisitions.
Polglase and Wayne Philips, responsible for part of mining, agree that the most delicate part of the project is the opening of the pit and the removal of ore. "The orebody has a funnel shape, so the digs have to be very close to optimize sterile-ore ratio," says the project director.
Funding was almost a hindrance to the start of the project. "We try to Brazilian banks, but saw it was going to be long," Polglase said. "With that we could lose the dry period and delay construction. Then I went to London, and six weeks, the project was fully funded. "
Mark Sawyer, a partner at Greenstone Capital, one of the greatest investors of Advancement, says that today this is definitely a major obstacle to large and small mining companies. Funds of Australia, Canada, the United States and other markets are closed to mining investments in this time when commodity prices are falling.
Sawyer said the mining company assembled a team "excellent" to become the most attractive venture. He, who this week visited the construction site, said that the fund invests in other base metals projects, such as copper and nickel, Chile and Namibia.
In addition to Greenstone, which has 16.7% of Advancement, the Appian Natural Resources and BlackRock funds have, respectively, 16.7% and 14% of the mining company, according to Bloomberg data.
"Brazil has large mining projects. We can prove [with the project Antas] that smaller projects can be successful and profitable, "says Phillips. He and Polglase agree that smaller companies are more entrepreneurial and nimble as they have "less [managerial] layers."
According to Advancement, bank financing could raise the cost of the project by 40%, while contracts in EPCM mode could majorar the project's costs by 50%.
"The owner of the business is in place," says Polglase. "It is important to defy common
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