Highlights
- Opening ceremony follows recent construction completion ahead of schedule and under budget
- Attended by key stakeholders including host communities, government authorities, employees and contractors, demonstrating the importance of the project to local and regional development
- Event included supportive speeches from national and regional officials
- Showcased the working mine with state of the art equipment, reiterated the roadmap to first shipment in November 2021
- Highlighted the Company’s world-class ESG standards and support for local communities
Mineração Vale Verde Ltda. (“MVV” or the “Company”) and Appian Capital Advisory LLP (“Appian”) have celebrated the official completion of the Serrote copper-gold mine and processing plant (“Serrote”) located in Alagoas, Brazil.
Event overview
On Wednesday 16 June, the Company held a ceremony to mark the official completion of Serrote, following its recent construction completion ahead of schedule and under budget. MVV has delivered the project with a leading safety record, and construction was concluded while managing the challenges posed by the global COVID-19 pandemic.
The event was in hybrid format, both online and with socially distanced in person representatives from host communities, government authorities, employees and contractors at the mine site, in compliance with all covid protocols to ensure the safety and security of attendees. The ceremony was attended by approximately 100 key stakeholders, including Renan Filho, Governor of the State of Alagoas; Alexandre Vidigal, Secretary of Geology and Mineral Transformation of the Ministry of Mines and Energy; and Esteves Colnago, President of the Geological Survey of Brazil (CPRM).
Proceedings included a number of speeches and presentations, and Governor Renan Filho underscored the importance of Serrote to the state of Alagoas, as the largest private investment in the state’s history. Secretary Alexandre Vidigal highlighted the fundamental role of the mining sector to Brazil, discussing the significance of copper in electrification and e-mobility, and demonstrating the part it will play in global decarbonisation. Secretary Vidigal also recognized and congratulated Appian and MVV on the success of the project, a historic landmark for the mining industry for the state of Alagoas.
The event also showcased the working mine with its state of the art equipment, reiterated the roadmap to first shipment of high grade copper-gold-silver concentrate (targeted for November 2021) and demonstrated the steps to ramp up to achieve 22 ktpa CuEq production.
Stakeholder engagement and social development
During the event, MVV’s transparent, respectful and productive relationship with all of its stakeholders came across strongly. The presentations referenced the Company’s world class environmental, social and governance (“ESG”) standards, which are at the centre of its business and operations, and have been critical for Serrote’s social integration, to generate continuous support from key stakeholder groups and ensure the success of the project.
Mrs. Cícera, leader of the Women Entrepreneurship Program, also noted the importance of Serrote in bringing new opportunities to the local area and fostering individual and regional development, commenting: “MVV has provided us with a new chapter in our lives. With the project’s support we have been able to improve income generation for our families, as well as our sense of purpose.”
All attendees received a gift crafted by community leaders in partnership with MVV’s socioeconomic development efforts.
ESG
MVV and Appian are committed to operating with the highest global ESG standards, not only seeing this as the right thing to do, but also a requirement for creating long-term value in the mining sector. Appian is a signatory to the United Nation’s Principles for Responsible Investment and adheres to ICMM’s Sustainable Development Framework, identified as current best practice. Its policies focus on having a positive impact on local economies, ensuring Tier 1 safety standards and delivering sustainable long-term benefits to local communities.
Appian carries out its philanthropic activities through the Appian Way Charitable Foundation (“AWCF”), which seeks to contribute to the health and equal education of children in the communities in which it operates. The AWCF Trustees have approved a US$1.7 million social and community budget for Appian’s Brazil operations, MVV and Atlantic Nickel. This will be used to support social initiatives in local communities as well as environmental measures, with a substantial part dedicated to sponsor a STEM education program in Alagoas. Appian has also played an important part in relief efforts for COVID-19 in the regions of its Brazil operations, procuring masks, test kits and thermometers, while donating more than 40 tons of protection and personal hygiene materials to the community.
Paulo Castellari, CEO MVV & Appian Brazil commented:
“Today we celebrate an important chapter in Mineração Vale Verde’s history, which is a key moment for both the Company and the state of Alagoas. This milestone is the result of many years of hard work and is testament to the commitment and continuous endeavours of our team and partners, reflecting our values, beliefs, and the success of the Appian business model.
It is fantastic to see such a great turnout for the opening ceremony, which really highlights the importance of the project for local and regional development, and I would like to thank all of our stakeholders, including host communities, authorities, employees and contractors for their continuous support.
As an organisation we prioritise ESG in everything we do, which has played a key part in Serrote’s success, and we will continue with our unstinting focus on social and economic development, safety and respect for the environment.
We now have a state of the art mine with low production costs, delivered ahead of schedule and under budget, and I am very excited about MVV’s huge economic and social potential as we ramp up over the coming months.”
For further information:
Finsbury Glover Hering +44 (0)20 7251 3801 / [email protected]
Charles O’Brien, Richard Crowley, Theo Davies-Lewis
Appian Capital Advisory +44 (0)20 7004 0951 / [email protected]
Michael W. Scherb
About Mineração Vale Verde Ltda.
MVV is the owner and operator of Serrote, an advanced stage, de-risked greenfield open-pit copper-gold asset, located in Alagoas, Brazil. The Company is headquartered in Belo Horizonte, with a high-quality management team with extensive local and international experience operating at site.
Following Appian’s acquisition of the asset in mid-2018, an updated DFS was completed outlining a 14-year initial mine life with production of approximately 24 thousand tonnes of copper equivalent per annum in a premium, high grade concentrate. Serrote is expected to be well positioned in the lower second quartile of the copper cost curve on a total cash cost basis.
MVV is pursuing several expansion opportunities beyond the initial mine life, with significant defined mineralization outside of the current mine plan as well as numerous satellite resources and targets within trucking distance of the planned plant infrastructure. Less than 50% of the 112Mt global MI&I resource is currently contained within the mine plan, with active drilling and growth plans underway to increase mineable inventory.
About Appian Capital Advisory LLP
Appian Capital Advisory LLP is the investment advisor to long-term value focused private equity funds that invest solely in mining and mining related companies.
Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 5,000 employees.
Appian has a global team of 46 experienced professionals with offices in London, Toronto, Lima, Belo Horizonte
and Sydney.
For more information please visit www.appiancapitaladvisory.com, or find us on LinkedIn or Instagram.
