New projects

Research Phase

For 2010, confirmation is awaited for the release of funds for Jacaré (PA) or Morro Sem Boné (MT), the two new projects of the Nickel Unit of Anglo American, which are still in the research phase. As soon as the feasibility studies are approved, one of the two projects will be initiated.

By the end of 2010 the results of the surveys will be announced – the Jacaré reserves, for example, may contain four times more nickel than Barro Alto, which will confirm its status as one of the two largest nickel reserves in the world.

Jacaré

The Jacaré Project– new mineral district located in Jacaré, 60 km to the north of the City of São Félix do Xingu, Carajás region, in the State of Pará – will require total investments of R$ 9.4 billion and has already cost R$ 23 million in geological surveys and mineral reserve assessments (totaling 495 million tons of two types of ore: saprolite and laterite, with average nickel content of 1.19%). The company has filed the application to Sema-PA (Environmental Agency of Pará) to develop the environmental impact study and report. In addition, the archeological research work of the area was started.

The next steps are to obtain the prior installation and water catchment licenses at the site. Since 2006, the Jacaré Project has received ISO 14001 and OHSAS 18001 certification, covering the geological survey work and the project site facilities.

Currently there 85 directly and indirectly involved professionals in the project, which during its useful lifespan – approximately 49 years – will generate 1,138 direct jobs, 300 outsourced positions and 3,400 indirect jobs. Anglo American will give priority to the hiring of local labor.

Among the actions already implemented to benefit the Jacaré community are the repair of 23 km of roads and five wooden bridges, in addition to a donation of 10 new computers and 6 printers to the Maria Madalena Municipal school.

Morro Sem Boné

The Morro Sem Boné Project, located in Mato Grosso will have an annual production of 32,000 tons of nickel. Currently studies and reports of the area are being developed, in addition to the Environmental Report Study (EIA – Rima), the Environmental Control Plan and archeological research. The total amount of investments for implementation of the project is R$ 3.3 billion.

Currently, 35 professionals work at the site and the forecast is for creation of 690 direct jobs, 2,050 indirect jobs and 180 outsourced positions. Priority will be given to the hiring of local labor.