The Australian reported that Crusader Resources is set to become an iron ore producer in Brazil after finally receiving the required government approvals.
The group's Posse project in Brazil's iron quadrilateral in Minas Gerais state has been ready to start production since October 2010, subject to the receipt of a mining license from authorities.
The company is expected to confirm this week that a mining license has been granted, enabling Crusader to start the mining and beneficiation operation to produce 1 million tonnes of iron ore annually for an initial mine life of 6 to 8 years.
The iron ore is destined for the local market where it is expected to fetch USD 80 a tonne compared with likely cash costs of production of USD 15 a tonne. The region is home to six large steel mills and more than 100 pig iron smelters.
Despite frustration with the lengthy approvals process for Posse, the delay has been beneficial to Crusader as it used the downtime to expand its Brazilian interests to include the Borborema gold project, recently estimated to contain proven and probable reserves of more than 1.6 million ounces of gold.
A bankable feasibility study into the development of Borborema as an annual producer of 150,000oz of gold is expected before the end of the year.
Source:
http://www.steelguru.com/raw_material_news/Crusader_Resources_gets_nod_for_iron_ore_mine_in_Brazil/293084.html
