Bauxite Project At Paragominas, Brazil ? Introduction

The Rio Tinto-Zinc Corporation Limited (RTZ), through it exploration company Riofinex, commenced exploration for bauxite in the Amazonia region of Brazil during 1970. Following' encouraging indications, exploration licences were taken out and an exploration programme was initiated In February 1975, a preliminary 'feasibility report indicated that a project, based on the Miltonia plateau located close to the town of Paragominas in the State of Para, was viable and that barging might offer an economic solution to getting the product to an ocean-going port. A, decision was taken in April 1975 to proceed with a full feasibility study. In the latter stages of the study, an engineering consortium of Mendes Junior and Bechtel do Brasil was employed to review, and modify if necessary, the concepts that RTZ had developed for the project's operation. With these concepts agreed, the consortium was requested to make capital and operating cost estimates, and these became available during February 1978. The deposit is being developed by a Brazilian company Mineracao Vera Cruz S.A. (MVC) in which the present share-holding is owned 64 percent by RTZ and 36 percent by Companhia Vale do Rio Doce (CVRD). RTZ is a British based international group of mining and industrial companies with interests in almost every major metal and fuel. CVRD is a Brazilian mining company, 85 percent owned by the Brazilian Government, with a major interest in iron ore and also other non-ferrous metals. It is intended, in due course, that the company will become majority owned by Brazilian interests.