OREANDA-NEWS. August 4, 2011. Mineracao Usiminas leased the mining rights of MBL Materiais Basicos. The business comprises also the purchase from MBL of an iron ore stockpile of 6 million tonnes at USD  12.5/tonne to be paid in installments and an ore dressing plant.

MBL’s mining rights cover an area at the boundaries of Mineracao Usiminas mining rights in the Serra Azul region (MG), which enhances the access to the company’s ore reserves. The leasing contract is valid for 30 years or up to the depletion of the estimated 145 million tonnes reserves. In addition, the agreement releases estimated 253 million tonnes in reserves under Mineracao Usiminas’ mining rights, as it allows the joint exploitation of both areas. Mineracao Usiminas will pay USD  7.50 per tonne of extracted ore, subject to escalation in line with the international iron ore market price. Monthly payments will be made to MBL as the reserves are actually exploited.

The ore dressing plant (1 mtpy capacity) will be used by Mineracao Usiminas for processing “hematitinha” and lump ores, whereas the 6 million tonnes inventory will be reprocessed by Mineracao Usiminas in its existing plants.

Moreover, the business includes lands and properties corresponding to the surface area of the mining rights, as well as other adjacent mining rights, which will enable the mining activities to be carried out in an easier way. According to Mineracao Usiminas’ executive director, Wilfred Bruijn, the ore reserves optimization is an important step toward Usiminas group’s upstream integration. “We expect to reach a production capacity of 29 million tonnes of iron ore by 2015, and one of the assumptions to achieve such a target is to enter into partnerships with other miners in the Serra Azul region through lease and joint mining agreements.