RONDON PROJECT
Brazil was a very competitive aluminium player, but it has changed.
Domestic consumption Metal production Metal export
1,0
00 t
onnes
0
1,000
2,000
1951 55 60 70 80 82 83 84 85 86 90 94 96 97 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14
1.4 million
Temporary Shutdown AlcoaShutdown Novelis (MG)
0.8 million
0.3 million
ALCAN
CBA
ALCO
AABAL
Bra
sil
–M
eta
l export
ALU
MAR
ALBRAS
Pla
no C
ruzado
Energ
y f
ree
mark
et
Pla
no R
eal
Curr
ency
devalu
ati
on
Energ
y r
ati
onin
g
Fundati
on
of
GT
Inte
rmin
iste
rial
do A
lum
ínio
(G
TA)
VALESU
L
Curr
ency
valu
ati
on
Worl
d c
rise
Novelis
(BA)
Vale
su(R
J)
Shutd
ow
n
15
Temporary shutdown Alumar (MA)
Shutd
ow
n N
ovelis
(MG
)Tem
pora
rysh
utd
ow
n A
lcoa
Source: ABAL
10% of annualgrowth
Brazil has a large bauxite resource base and is supportive of the mining industry.
| Brazil has the world’s third largest bauxite resource base - most remains unexplored;
| Mining industry is supported by governments and local communities.
BAUXITE DEPOSITS
JamaicaGuyana
Suriname
0,8 Bt
1,2 Bt
0,6 Bt
China
India
Vietnam
Indonesia
Australia
6 Bt
3 Bt
0,5 Bt
1 Bt
2,1 Bt
Guinea
7,4 Bt
Brazil
5 Bt
Source: US Geological Survey - Mineral Commodity Summary (2014) and VM Market Intelligence
North region represents86% of Brazil’s bauxite resource.
PARAGOMINAS
MRN
AND JURUTI
BARRO ALTO
BAHIA
POÇOS DE CALDAS
3.0 Bt
1.3 Bt
0.1 Bt
0.1 Bt
0.4 Bt
0.1 Bt
ZONA DA MATA
Para State
Paragominas
Province
Pará State
5 BILLION TONNES OF BAUXITE
3 billion tonnes located in Paragominas region
Bauxite tenements
Mineralized bauxite regions
Source: VM analysis
Rondon is a world class deposit witha large bauxite resource of 1.6 Billion Tonnes,almost 32% of Brazil or 53% of China Resources.
GOIANÉSIA DO
PARÁ
RONDON DO PARÁ
DOM ELISEU
Ulianópolis
Marajoara
Rondon
Nordeste
Goianésia Sul
Rondon
Norte
Rondon
Sul
VM – 5 Exploration Application
JV RTA –16 Exploration Permits
VM – 29 Mining Concessions
VM – 16 Exploration Permits
Mineralized bauxite plateaus
10 km
PARAGOMINAS
City
Bloco Norte
Paragominas
Province
*Considers only Rondon Norte and Rondon Sul because they have a Feasibility Study (FEL3).
| Resources and potential of 1.6 billion tonnes of bauxite
| Reserves of 300 million tonnes of bauxite (1)
| JORC Indepent Audit by AMEC
| Free of organics
| No contaminants
| Sweet bauxite (100% gibbsite)
| 3 Pilot Mines
| Metallurgical tests: CSIRO, etc
Rondon deposits are extremely continuous withkilometers of bauxite along the plateaus.
ore oreore
INCREASING GEOLOGICAL KNOWLEDGE AND CONFIDENCE
Cross Section – Vertical Exaggeration 150x
Clayey Cover (Belterra Clay)
Clayery Bauxite
Massive Bauxite
Ferruginous Bauxite
Ferruginous Laterite
Nodular Bauxite
Mottled Zoze
Rondon Norte
Because of the continuity of the ore theInferred to Measured conversion is very high.
800mQ
Inferred
400mQ
Indicated
200mQ
Measured
JORC Code Independent Audits at Rondon Norte Plateau.
Experienced geologists managing drilling, sampling, QAQC, geological modeling and resource estimation. Detailed procedure
documentation available on request for most procedures. No fatal flaws or critical issues.
Technical excellence observed in many areas.
“
”AMEC did not identify any key or significant issues related to Geology and Mineral Exploration. Some
minor issues had been already resolved at the time of the Audit. AMEC acknowledges that this work, which has been audited several times during the last four years, can be considered as a reference
for mineral exploration worldwide.
October/2011
“
”
September/2013
Bauxite
Bauxite
Mine 2
Mine 2
Mine 2
Overburden
~12 meters
Bauxite ore
~3 meters
Mine 2
Mine 1
Bauxite
Bauxite
20 km
375 Mt @ 42.8% Al2O3, 3.9% SiO2
Rondon Norte
273 Mt @ 40.1% Al2O3, 3.9% SiO2
Rondon Sul
Mine 3
Mine 2
Mine 1
3 Pilot mines open to support metallurgical test ~1,000 tonnes of bauxite each.
Feasibility Study (FEL3) for Rondon Norte and Rondon Sul was prepared by WorleyParsons and SRK whichresults in more than 70 year LOMP @ 9 Mtpa.
Bauxite
Bauxite
Bauxite
Bauxite
0,0
5,0
10,0
15,0
20,0
25,0
30,0
0,0
0,5
1,0
1,5
2,0
2,5
3,0
01 06 11 16 21 26 31 36 41 46 51 56 61 66 71
Ove
rbu
rde
n(m
) &
Stri
pp
ing
Rat
io(m
3 /t)
Bau
xite
Ore
(m
)
YearBauxite Ore (m) Overburden (m) Stripping Ratio (m3/t)
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
20,0
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
45,0
50,0
01 06 11 16 21 26 31 36 41 46 51 56 61 66 71
Re
acti
veSi
lica
(%)
&A
/S R
atio
Ava
ilab
leA
lum
ina
(%)
YearAvailable Alumina (%) Reactive Silica (%) A/S Ratio
375 Mt @ 42.8% Al2O3, 3.9% SiO2
Rondon Norte
273 Mt @ 40.1% Al2O3, 3.9% SiO2
Rondon Sul
20 km
Rondon is one of the most competitive bauxite projects in the world. It will be the fourth bauxite mine in Pará State.
| Expansion Potential to 18 Mtpa
| Located in the 3rd largest bauxite region in the world
| World class mineral resources of 1.6 billion tonne
| Free of organics
| No contaminants
| A/S ratio average ~ 16 for the first 10 years
| Feasible logistic solution
| Build a 140km-branch line to Carajás Railway
| Exports through Itaqui Port, located in São Luis,
Maranhão State
| Competitive CAPEX per tonne
| 97 USD / tonne of annual capacity of washed
bauxite (Feasibility Study)
| 1st Quartile Site Cash Cost
| 9 USD / tonne of washed bauxite
| Feasibility Study (FEL3) WorleyParsons
| Project supported by the local community and the
government
MRN18 Mtpa bauxite
Juruti4.5 Mtpa bauxite
Paragominas10 Mtpa bauxite
Alunorte6 Mtpa alumina Itaqui Port
Alumar3.5 Mtpa alumina
Rondon9 Mtpa bauxite
Bauxite Mine
Alumina Refinery
Port
Legend:
Railway
Capacity
9 Mtpa
Washed Bauxite to export
Expansion
18 Mtpa
Pará State Maranhão State
Rondon will use the strip mining method which is cost competitive and ensures the full environmental recovery. This method is the same used in other bauxite mines in Pará State.
1 - Debushing 2 - Topsoil stocking 3 - Topsoil removal
4 – Overburden removal 5 – Bauxite mining 6 – Dewatered tailing disposal
7 – Topsoil recovery 8 – Revegetation 9 – Crusher feeding
First 10 years ore over 2 meters
First 10 years
overburden
~14 meters
Beneficiation comprehends crushing and washingto remove the clay (kaolinite) from the bauxiteto improve the A/S ratio.
Crushers
Washing Plant
Bauxite Clay (Tailing) DewateringRondon doesn't have dams
The tailing goes back to the mined areas after dewatered
Crushed Stockpile
ROM Stockpile
Reject thickners
The layout allows the expansion from 9 to18 Mtpa washed bauxite.
Beneficiation and Rail Yard
Alumina Refinery
(future)
The design considers:
•2 lines of bauxite beneficiation with 9 Mtpa capacity;
•2 stages of alumina refinery with 3 Mtpa capacity (or 4 lines of 1.5 Mtpa).
500 meters
The route of the branch line does not have native people or environmental issues. The land is mostly flat with no requirements for tunnels or bridges.
Mine
Legend:
Railway Branch
City
Railway
Federal Road
Rondon Project
9 Mtpa Capacity
18 Mtpa Expansion
Branch Line
140 km Rondon
to Açailândia
Carajás Railway
550 km Açailândia
to Itaqui Port
Itaqui Port
Pará State Maranhão State
Norte Sul Railway
50 km
Dom Eliseu
Rondon do Pará
Açailândia
Branch Line has ~140 km, the rail yards add more ~6 km, the maximum gradient will be 1% in export direction, the track
gauge is 1,600 mm (5 ft 3 in), the same as other Federal Concessions like Carajás Railway and Norte Sul Railway
Itaqui Port handled 21.8 Mtpa of cargo in 2015. Berth 99 project will have more than 18 meters of draft,for Capesize Vessels with 135,000 tonnes.
Projected Berth 99
Itaqui Port
106 105 104103 102
101
100
99
Projected Berth 99
Seaborne world bauxite supply routes.
Bauxite supply from Brazil
to Midle East or to China is a
competitive alternative
Brazil
Guinea
Jamaica
Suriname/Guyana
India
Australia
Indonesia
Malaysia
Others
Thanks!CARLOS GATTI
Tel 55 11 98777 6776
Av. Eusébio Matoso, 1375 – 10º andar05423-905 | São Paulo | SPwww.vmetais.com.br
Este relatório é confidencial e não deve ser repassado a terceiros. Qualquer dúvida, favor entrar em contato com a Comunicação Corporativa.