São Paulo – The largest nickel mine in Latin America, the third largest open-air mine in the world, Mirabela Nickel, started operating last week. Located in the city of Itagibá, in Bahia, (204 kilometres away from Salvador), the company should produce 4.6 million tonnes of iron ore a year, 150,000 tonnes of concentrated nickel, with the possibility of reaching 208,000, growth of 30% in Brazilian production of the ore.
Half of the annual production of the ore is exported to Finland, through Ilhéus port, and the other half should serve the Votorantim units, in Minas Gerais and Ceará, to be responsible for the logistics for removal and shipment of the product. Investment in the production unit totalled US$ 450 million.
According to the director general at the National Department of Ore Production, Miguel Nery, once the mining company is fully operational, Bahia should become the state receiving the third largest volume of revenues for Financial Compensation for Exploration of Mineral Resources (CFEM), part of the royalties paid by the company. In CFEM alone, the funds should total 20 million Brazilian reals (US$ 11.4 million).
The technical director at the Bahia State Company of Mineral Research (CBPM), Rafael Avena, explained that Bahia also has profits with operation of the mine through revenues from the value added state tax (ICMS), estimated to reach 60 million reals a year. From the CFEM, 2% go to the Federal Government, 23% to Bahia and 65% to the city of Itagibá.
Self-sufficiency
As it is an area belonging to the CBPM, Mirabela should transfer 2.51% of the royalties to the company. With this, CBPM should become self-sufficient in 2010.
The most evident results of the benefits for the company are in the generation of jobs and income. In the mining company alone, 2,000 direct and indirect jobs were created. "Before Mirabela it was very hard to find a job in my area of operation. I spent eight years working in supermarkets in the region and, when the opportunity arose, I tried and was chosen. Here I have perspectives for the future,” said plant operator Sirlei Lopes, aged 28. To him, it is an opportunity for professional growth. “The company policy is for us to run the entire plant, to know everything, all sectors,” he finished off.
Attraction hub
Apart from that, other companies are being attracted to the region after the implementation of Mirabela, transforming the local economy, which includes the cities of Itagibá, Ipiaú, Ubatã, Gongoji, Jitaúna, Barra do Rocha and Ibirataia. It is expected that new hotels, restaurants and bars should arise, and that there should be greater opportunities of social and cultural activities in these cities.
“The total investment made over the last five years for construction of the factory, purchase of equipment and labour in building industry generated much employment and many revenues for the region,” said state governor Jaques Wagner. According to him, the company generates ICMS, services rendered tax (ISS), as well, of course, as royalties.
Geological research
With a length of two kilometres and depth of approximately 500 metres, the mine had an estimated life expectancy of 20 years, but, with the new research, it may reach 40 years. CBPM geological research began in 1988, when the quality of the nickel was analysed and the economic potential of the mine and its possible use were studied.
According to Avena, the technical figures of the research served as a basis for attraction of private companies to participate in a public tender, which selected Mirabela Mineração to promote the risk investment in research work, necessary for proving the reserves and the definition of the technical, economical and environmental viability of the project.
The complex
The Mirabela enterprise includes the open-air mine and a mill for concentration – crushing, grinding, floating, thickening and filtering. According to the state secretary for Industry, Trade and Mining, James Correa, the Mirabela complex should result in 30% expansion in the Brazilian production of nickel, raising Bahia to the position of second main producer in the country, resulting in revenues of 640 million reals (US$ 366 million) in 2010.
*With information from the Portal of the Government of Bahia. Translated by Mark Ament
