OREANDA-NEWS. October 5, 2011. For Roger Downey mining projects have to be sustainable and respect the environment and the communities surrounding the projects

Respect for the environment and the communities surrounding a mining operation were the keynote of the presentation made by MMX CEO, Roger Downey, during a talk on “the Present and Future of Mining" given today (27/9) at the 14th Brazilian Mining Congress, an event promoted by the Brazilian Institute of Mining (Ibram) in Belo Horizonte.

"MMX is looking for sustainable development. It is for this reason that its commitment to the environment and to communities is ongoing, starting before, and continuing after, the closing down of operations. The role of MMX at Serra Azul, for example, is to work an old mining area differently, with respect for the environment and the communities there," commented Downey, referring to the region in which the company is operating and where it is expanding its activities.

Present Scenario

Roger Downey also stated that the increased investments (Capex) in mining projects and the changes in the world scenario could derail projects that are not sustainable in the medium term. "At the beginning of the decade, iron ore production in Brazil cost UUSD  20 per ton; today it costs from UUSD  150 to UUSD  200".

The uncertainty of the economic scenario, environmental preservation, geopolitical distribution and increased investments are factors of change in the world mining scenario and challenges for business. In Downey’s opinion "this is why projects have to be sustainable, to be world-class assets, have guaranteed markets and integrated logistics to ensure that this product will make it to the seaborne market".

The company currently has an installed capacity of 8.7 million tons of iron ore per year and aims to reach 24 million tons per year by 2014. The increased production is based on sustainable projects, new technologies for processing ore, extending the useful life of old mines and joint ventures already signed with other mining companies located in areas close to the MRS railroad. The SudesteSuperport, which is being built in Itaguai (RJ), is the catalyst for company growth, since it will be the only port able to export additional production from the Iron Quadrangle (MG) in the coming years. To transport the ore from the mine to the port, MMXwill useMRS rail transport.