ItaFos Mineracao

completed

MBAC Fertilizer Corporation, a Canadian company, through its local subsidiary Itafós Mineração Ltda (Itafós), is the Project Developer. The Project involves the development of a phosphate mine coupled to a new industrial complex that will produce fertilizers and other by-products for agricultural use, including 330,000 tons per annum of 28% P2O5 concentrate; 94,000 tons per annum of 15% P2O5 concentrate; 215,000 tons per annum of 98% w/w sulfuric acid; and 500,000 tons per annum of single superphosphate (SSP.) The Project is located in the municipality of Arraias, in the southeast of the State of Tocantins, Brazil; nearing the border with the State of Goiás. However, the nearest community to the project, located 7 km away, is Campos Belos (19,000 inhabitants) which is in the state of Goiás. Arraias city in the State of Tocantins is located 22 km from the facilities.The Project’s footprint occupies a total area of approximately 1,600 hectares (ha) including the industrial installations (approx. 45 ha), the mineral resources (approx. 490 ha); and a water dam (approx. 220 ha), and a tailings dam (approx. 740 ha) to be built. The mining activities include open pit phosphate ore extraction, removal of overburden, and restoration of mining areas. The mine plan developed for the Project anticipates processing a maximum of 3.5 M tons of ore per year at an average grade of about 5.0% P2O5, with a peak total material movement rate of 17.4 M tons per year. This scenario results in the production of approximately 330 K tons per year of phosphate concentrate at a grade of 28% P2O5. The expected life of the mineral deposit is 15 years.The industrial activities comprise (a) phosphate rock processing including screening, crushing and grinding, then water tank flotation to separate the phosphorous-rich phosphate rock from other minerals (waste) followed by filtration and drying; (b) manufacture of sulfuric acid by melting sulfur and making it react with dry atmospheric oxygen to form SO3 and then through absorption of SO3 into water to produce sulfuric acid; the steam that is generated as by-product is used to produce electric energy; (c) single superphosphate powder (SSP) production through the combination of phosphate rock and sulfuric acid; and (d) manufacture of ammoniate single superphosphate granulated (GSSP) by reacting ammonia with SSP in the granulation plant. The project will use firewood as fuel for the phosphate rock drying process. Itafos selected wood as fuel for environmental and economical reasons. This renewable energy source is available closer to the project site than the nearest oil supplies which are more than 1,000 km from the project site. Natural gas which was also considered in the selection process would have to also be transported from approximately 1,000 – 1,500 km from the project site. The construction phase of the project is planned to start within the second quarter of 2011, with an expected workforce of up to 1500 persons during peak period, and it is expected to begin operation in the third quarter of 2012. The project will manage the environmental and social impacts in accordance to international good practice. In addition, the project will generate potential opportunities to the local communities by offering access to jobs, skills development, and business opportunities from providing services and products to Itafós as well as increased municipal tax revenue.