Sossego Mine

Vale S.A. released its Quarterly report.

The output from the mine in the first nine months of 2005 was lower than initially expected due to delays in receiving replacement drilling equipment needed to address harder than expected rock conditions. In this quarter 2005, the output of the Sossego copper mine was negatively affected by the rainy season and by operational problems with mining equipment. Copper concentrate in this period was lower, at 25,000 tons. Problems with mining equipment resulted in the feed to the plant with lower than expected average ore grades, reducing throughput, and consequently, concentrates production. The equipment was being replaced to enable the plant to operate at the programmed rate.

Rio de Janeiro-based resources giant CVRD expects production at its new copper mine in northern Pará state to reach 180,000 tonnes in 2005, BNAmericas.com reports company executives as saying. Sossego, which entered into production in 2004 and yielded 73,000 tonnes of copper in concentrate, should reach its peak production this year as CVRD concentrates efforts on the richest part of the mine, CVRD president Roger Agnelli said at a press conference to discuss 2004 results. The preliminary forecast was for an annual average 140,000 tonnes of copper in concentrate over the life of the mine.