The sale includes the mining rights for the surrounding areas as well as the mine itself.
Under the agreement, Avante Group will take full responsibility for the iron ore operations and production activities at the site. Gerdau will retain the priority right to purchase part of the ore produced and will cover closure costs for the mine during its operational lifespan.
This transaction is part of Gerdau’s strategy to restructure its mining assets. The company will now focus its mining activities on the Miguel Burnier Mine in Ouro Preto, Minas Gerais, which supplies raw materials to its Ouro Branco plant.
The investment in the Miguel Burnier site amounts to 3.2 billion Brazilian reals, and is expected to increase its annual production capacity by 5.5 million tonnes. The company also emphasized that the new mining platform has been recognized by the Initiative for Responsible Mining Assurance (IRMA) for its responsible practices.
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