The Brazilian iron ore miner Itaminas, controlled by the AVG group, has started production activities at the Jangada Mine, located in Sarzedo, Minas Gerais state.
The company has plans to produce in Jangada 8 million mt of iron ore per year, with a 64 percent average iron contents, increasing its annual capacity to 15 million mt per year, ranking Itaminas as the second largest iron ore producer in the ferrous polygon of Minas Gerais.
Jangada is owned by the miner Vale, which leased it to Itaminas for 15 years.
During that period, the companies will work in a strategic partnership, described by Itaminas as a high synergy collaboration, with high potential of value generation for both companies.
Itaminas has access to direct shipping from Porto Sudeste, located in the state of Rio de Janeiro, although it is not clear if it will be entitled to ship the total 15 million mt per year from that port, as the access for shipment today is limited to 4.0 million mt per year.
