Mubadala and Trafigura, the controlling shareholders at Mineração Morro do Ipê, expect their Tico-Tico mine to start operations by 2021, a media report from Valor said Wednesday.
The two shareholders signed earlier this year a protocol of intentions with the government of Minas Gerais state to invest BRL 200 million ($48.8 million) in the Tico-Tico and Ipe iron ore mines, all located at different sites in the cities of Igarapé, Brumadinho and São Joaquim de Bicas.
Valor said Mineração Morro do Ipê has already filed for an environmental license for the Tico-Tico mine. Brazilian regulator Ibama also needs to approve the Tico-Tico project, and once the license is granted Tico-Tico can start producing iron ore.
Mineração Morro do Ipê expects operations for the Tico-Tico mine to start in 2021, and it should produce 6 million mt/year of iron ore.
Mineração Morro do Ipê currently uses existing iron ore supplies from the former MMX Sudeste. Mubadala and Trafigura bought MMX Sudeste, then renamed Mineração Morro do Ipê, in 2016 for BRL 207 million ($50.5 million).
Mineração reportedly has iron ore supplies to last until 2020, and should sell about 1.9 million mt of the commodity in 2019.