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Pentecoste Project of the Cone Mine Exploration

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Pentecoste Project of the Cone Mine Exploration PPEENNTTEECCOOSSTTEE PPRROOJJEECCTT 1 - INTRODUCTION 1.1 – OBJECTIVE The follow present report has an objective to describe the accomplished works in offices and fields for the geologic and economic description of the area referring to the Pentecoste Project of the Cone Mine Exploration. This work has a main goal elaborate an evaluation of the iron ore reserves in the area of the process, quantifying and qualifying them with accuracy. Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil 1.2 – MINERAL LEGISLATION IN BRAZIL The laws that conduct the mining activities in Brazil established that the subsoil belongs to the federal government. That way, activities of prospection, exploration and exploitation just are possible with the government authorization through of its department DNPM (National Department of Mineral Production). Each process of mineral exploration is evaluated by the DNPM based in technique criteria and the authorizations are granted in two stages: Exploration License and The Mine Work Concession. The authorization holder of DNPM has full and exclusive rights about the work execution, as well about the commercialization of the area. 1.3 – MINING IN BRAZIL Brazil stands out worldwide as one of the main producers of the minerals goods. The mining industry in Brazil has a highest technology level and technique, being forward of a several obtained innovations in this area in the last decades. In all regions of the country exists an extensive web of education for the formation of professional that attempt to the mining’s demand. The high workforce qualification, together to good infra-structure and low productive cost becomes the mining in Brazil object of a great interest by the part of the foreign and national investors. Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil Brazil is the second bigger producer of the iron ore. Its production in 2010 is estimated at 370 million tones, equivalent to 16% of the world (2.3 billion tons). The main producing states in 2010 are: MG (67%), PA (29.3%) and others (3.7%). Adding the commercialized rude ore production to the production of the sector of mineral transformation, the mining of Brazil generated in 2008 US$ 42 billion, what represents 5.7% of the GDP. The positive scene reflects in the investments of the sector that are foreseen in US$ 62 billion between 2010 and 2014. Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil 1.3.1 – ACTUAL SCENARIO OF I RON ORE IN BRAZIL Brazilian iron ore resources (total measured, indicated and inferred) officially recognized by the National Department of Mineral Production DNPM are around 73.7 billion ton s. Considering the measured and indicated reserves Brazil has about 33.0 billion tons of ore , as follows: Minas Gerais - 71.0%, Pará - 26.0 % and other states (Mato Grosso do Sul, Alagoas, Amazonas, Bahia , Ceará, Goiás, Pernambuco, Rio Grande do Norte and São Paulo) - 3%. The Brazilian reserves represent 8.9% of world reserves (370 million tons), putting Brazil in fifth place among the countries possessing larger quantities of ore. However, considering the reserves in terms of iron contained in the ore, Brazil takes very important place in the international arena. This is due to the high content found in Hematite Ore (60% iron) predominant in Pará and Itabirite Ore (50% iron) predominant in Minas Gerais. 3% 26% MG PA 71% Outros Graphic 1 - Distribution of Iron Ore Reserve in Brazil by States - 2008 - Source IBRAM Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil In 2008, Brazilian exports of primary iron goods reached 282 million tons, with an FOB value of U.S. $ 16.5 billion. The countries that most imported from Brazil were China (31%), Japan (11%), Germany (8.5%), Italy (5%), France (4%) and others (40.5%). Graphic 2 – Iron Ore Exportation between 2000-2008 – Source IBRAM Consumer market of iron ore is formed mainly by the steel industry. Graphic 3 - Consumer Market of Iron Ore – Source IBRAM Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil 1.3.1 – ACTUAL SCENARIO OF CALCAREOUS ORE IN BRAZIL Calcareous (limestone) derives from Latin calcarius , meaning “that contains salt”. They are rocks that have dominance of calcium carbonate in the chemical composition, which the origin organic at prevalence is associated with fossil shells and skeletons of living organisms or by chemical precipitation. In the chemicalgene calcareous case, calcium carbonate dissolved in the water crystallizes and precipitates forming lenses and layers with thickness and continuity variables, especially in marine environments. The most common outcrops in the crust are organic. The general classification of limestones, due to variations in the mineralogical composition of rocks, allows to distinguish them: limestone (calcite) and dolomite (magnesium, CaMg (CO 3)2 or CaCO 3. MgCO 3). The main applications are: the production of lime in agriculture (soil pH correction), metallurgy (flux), in the glass industry, as ornamental rock, casing and gravel for building construction, and in the cement industry (Portland cement). The primary availability of limestone - carbonate rocks composed mainly of the minerals calcite (CaCO 3) and dolomite (CaCO 3MgCO 3) - reach around 14 billion tons. Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil Graphic 1 – Distribution of Limestone Reserves by State In 2008, Brazilian production of limestone was 114 million tons, and about 74 million tons went to the cement industry, 23 million tons to agricultural limestone production, 12 million tons for the production of lime and the remainder to other industry sectors, including production of gravel, as shows graphic 2. Graphic 2 – Sectors Consumers of Limestone Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil Use of limestone for the Production of Lime Lime or calcium oxide (CaO) is a product of calcination of limestone or dolomite. Lime is produced based on limestone with a high content of calcium or magnesium. Typically, lime with high calcium content has less than 5% MgO. By calcination means transformation by heat of calcium carbonate (CaCO 3) in oxide (CaO), called ordinary lime, or any other metal in oxide, which, previously, gave the generic name of lime. In general, calcination occurs close to the material melting temperature, in the case of limestone, ranging from 900 to 1000°C (1652 to 1832°F). The manufacturing of lime includes three steps: sample preparation, calcination and hydration. The preparation stage of limestone to feed the calcination kiln means mining operations, crushing plant, screening and sometimes washing, to obtain a final product with lower levels of impurities. Common procedures are adopted for removal of silica, alumina and iron oxides. The flowchart in Figure 1 illustrates in detail the operations of obtaining lime. Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil Figure 1 – Flowchart flowchart of the circuit to obtain lime based on calcium carbonate dolomite Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil Use of Calcium Carbonate in the Metallurgical Industry The calcium oxide reacts readily with impurities, among others, with those containing sulfur, according to the reaction: CaO (from limestone) + SO 3 ↔ CaSO 3 (slag) This type of reactions are important in high temperature pyrometallurgical processes in which the CaO produced by decomposition of CaCO 3 reacts with acidic impurities, for example, in kilns for pig iron manufacturing. There are several functions of lime in the steel industry, among others: (i) scorify loading impurities, through the above mechanism; (ii) reduce the loading melting temperature and the slag viscosity facilitating their drainage. The calcite limestone used in the steel industry has a dual function: melting and fluxing. These limestones must contain at least 49% CaO, from 2 to 4% MgO and between 2 and 5% SiO2. The particle size should be between 20 and 49 mm. The loss on ignition should be around 40%. Use of Limestone in Agriculture The ground limestone and its products, quicklime and hydrated lime, slag, and others, are applied to the soil to correct acidity and promote plant growth. Cone Mine Exploration - www.cme7.com.br Av: Luiz Paulo Franco, 345 - 1º Andar / Cep.: 30320-570 – Tel.: (31) 3282-3232 - Fax.: (31) 3286-5111 Belo Horizonte - MG - Brasil Most of the limestone used for agricultural purposes in Brazil is based on the direct application of the product in the soil. Even so, products such as quicklime and hydrated lime, slag, among others, are used for correcting soil acidity, reaching a pH between 6 and 7, the range considered optimal to cultivate many plants. The limestone, mainly dolomite provides two important nutrients for the soil, calcium and magnesium, as well trace elements contained in the limestone. The limestone also neutralizes the acidity generated by nitrogen fertilizers, such as nitrate, ammonium and sulphate increasing the cultivation and organic content of soil.
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