O. P. Siqueira
Mineração Rio do Norte Tells Its Story From the Beginning
Mineração Rio do Norte
Tells Its Story From the Beginning
O. P. Siqueira
Mineração Rio do Norte Tells Its Story From the Beginning
O. P. Siqueira
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Text Preparation
Memória & Identidade Translated by
Lídia Pergher Costa Graph Project
Studio Ronaldo Barbosa Edison Arcanjo Andrius Machado Jarbas Barros Gomes Photolyte
Hans Matrizes Gráficas Printed by Laborprint Editora, Gráfica e Fotolito
Sponsored by
Porto Trombetas - Pará, 2002
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Mineração Rio do Norte Tells Its Story From the Beginning
O. P. Siqueira
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Perhaps nobody else might have as good overall knowledge of MRN as Ozair Pereira de Siqueira: as one of the company’s pioneers and throughout his professional life practically devoted to MRN, actively participating in its most relevant events, he acquired a great good knowledge of the Company insights. This is why MRN was driven to support Siqueira’s initiative to put in writing all relevant aspects and facts of the Company’s history, considering this book as they do, one of the most significant reference marks of the work that, throughout three decades, has been performed there by a cooperative team. We do hope this book signals not only our homage to our good fellow Siqueira for his dedication, thoroughness and earnestness, but also further unveils the background story of this great undertaking that is Mineração Rio do Norte.
The Executive Committee
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Behold the 21st Century outbreaks and there Mineração Rio do Norte S.A. is inserted, continually innovating, going onwards to occupy, not in much farther a future, the privileged position as the first worldwide bauxite mining enterprise. MRN is well prepared to overcome challenges and most certainly the forefront will continue to be its space, portraying its noteworthy story, a source of pride to all those who helped building this company. Basically, pride was the primary incentive to have this book written. As one of the persons that intensively participated in practically all events throughout the company’s trajectory, from the prospecting for bauxite in the Amazon region until very recently when retirement was the next step, I really felt a privilege to have had the opportunity to closely accompany all superseded challenges and achieved targets that are part of this story of success. This book is divided into three large parts where the background, the project construction and its development thereafter are painted. I must apologize in anticipation for any possible omissions or misinterpretations, which should be debited to the impossibility to concisely make reference to all persons who, in some way, were involved in MRN history. Certainly, an undertaking of this magnitude is dependent upon the high aptitude and capability of thousands of clever cooperators, devoted persons who, together with their families, gave a lot of their contribution and lives to form an unique and special culture – and it should be said that only a really committed teamwork whose active participation never failed, could have given rise to an entrepreneurial and communitarian work of such a magnitude. I would like also to express my gratitude to ALCAN’s Executive Officers, who summoned me to participate in this victorious undertaking, where I had an unique opportunity of selfaccomplishment, a really deep mark on my career and personal life. My especial and warmest gratitude to MRN’s Executive Committee, that supported and financed this book, and likewise financed the installation of the MRN Memorial House, which I dreamt of for a long time and that I was delighted to see born and grown and is now a special space for preservation of the company history. Finally, my deepest gratitude to my wife – Maria Hilarina – that firmly accepted my long absences from home, practically alone taking care of the education of our kids – Rodrigo and Patrícia – and whenever possible, shared my moments in Porto Trombetas thus turning my career a feasible and well paved way. To them and also to my grandchildren – Marina and Matheus, born from Rodrigo and Adriana - I dedicate this book; their chances to visit us in Porto Trombetas were scarce, but they shall see a large part of their granddad memories reflected on this book.
Ozair Pereira de Siqueira Rio de Janeiro, March 2002.
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A Pioneer Undertaking Aluminium and bauxite
12
Discovery of the Amazon bauxite
18
A project in the middle of the jungle
28
The undertaking commences
34
The Project Implementation of the Trombetas Project
66
Building up a company
78
Building up a town
94
The Project Development
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MRN’s growth
142
New environmental paradigms
152
MRN: Entrepreneurial Citizenship
160
Appendixes
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Empire Drill portable driller used in the prospecting for bauxite on the Amazon region. 60’s. MRN’s collection.
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A Pioneer Undertaking
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ALUMINIUM AND BAUXITE
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A Pioneer Undertaking | 13
The aluminium is the third more abundant chemical element available on the earth crust, coming after the oxygen and silica. In pure state, this metal is neither quite hard nor resistant, however, when combined with other metals, its hardness grows without adversely affecting its main advantages: low weight, malleability and stress and corrosion-resistance. This is why it is the second element more widely used by man in industrial scale, coming after the steel. It is the raw material for various modern industry products, from the prosaic domestic utensils, angle plates and various types of package foils to the civil construction frameworks, airplanes, ships and automobiles. Additionally, the aluminium alloys are also largely used in the chemical and other industries. The aluminium hydroxide, for instance, is used as anti-acid in digestive ailments, as used is the aluminium sulphate in the fresh water treatment. Aluminium compounds, mainly the sodium tri-calcium aluminate, are also very important for type-Portland cement production. Special alloys obtained from the aluminium are also used for manufacturing aluminium cables, dyes and many other products.
BAUXITE
Bauxite, that is the aluminium ore, is available in economical
and commercial scale in few countries. The designation “Bauxite” has its origin in “Les Baux”, a French Bouches-du-Rhône hamlet, where this ore was first identified in 1821. Among other worldwide bauxite deposit holding-countries, approximately three billion tons are on the Amazon region, in Brazil that, together with Jamaica, currently ranks the third largest worldwide bauxite deposit. They are preceded by Guinea, with eight billion tons, and Australia, five billion. On the other hand, Australia is the first world bauxite producer, accounting for 35.9% of the total production, followed by Guinea (13.2%), Brazil and Jamaica (10.1% each). 30% of the Brazilian bauxite deposits are located in the State of Pará, where MRN’s bauxite project was constructed, which accounts for over 80% of the domestic production.
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In Porto Trombetas, the bauxite is found on the flat top of the plateaux remnant of an original peneplain, ranging from 80 to 120 meters above the valleys. The highlands elevate sharply from the surrounding sandy and undulating peneplain until reaching some 180 meters above sea level. The sur face of the plateaux is nearly flat, horizontal, with a mild down slope towards the escarpments, bearing a few depressions and elevations. Due to the good soil drainage characteristics, there are no brooks or lakes nor permanent wells on the highlands. However, various fountains spring on the bottom of the plateaux. Such plateaux are sinuous, var ying in size from few to various thousand hectares. A typical section of these plateaux shows an average of six-meter overburden, one- meter nodular bauxite layer separated from the bauxite bed by a one-meter thick ferruginous laterite layer lain on a mottled clay base. The nodular bauxite and ferruginous laterite layers are intermittent, that is, they do not occur everywhere. The nodular bauxite consists of bauxite nodules in clayey matrix, whereas the compact bauxite varies with its depth from hard and dense to soft and grainy, in block-form. Growing quantities of clay occur as the compact bauxite base approaches. In reality, the bauxite results from the weathering and leaking of aluminium oxiderich rock with retention of the hydrated aluminium oxide and leaking of other components of the matrix rock. The bauxite is a heterogeneous material, its main components being hydrated aluminium oxide minerals – tri-hydrate in the case of gibbsite (Al203.3H20), monohydrate in the case of bohemite and diaspore (Al203.H20). A large portion of the bauxite occurrences in Europe and north Asia is of the monohydrate type. The tri-hydrate bauxite over the rest of the world occurs mainly in the tropical regions and may contain small quantities of the monohydrate bauxite type, although in some cases the monohydrate bauxite may reach up to 20%. The Trombetas bauxite is of the tri-hydrate type or gibbsite.
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A Pioneer Undertaking | 15
THE ALUMINIUM INDUSTRY IN BRAZIL
Up to middle-sixties,
the bauxite reserves in Brazil were scarcely known despite its large tropical area, and concentrated on the Poços de Caldas City and “Quadrilátero Ferrífero” (Iron-bearing square) regions, both in the State of Minas Gerais, amounting to less than 100 million tons. Such reserves permitted to initiate the aluminium production in modest scale as from 1945 and also export small volumes of nonmetallurgical grade ore to Argentine for water treatment. Despite the limitations of such bauxite deposits, it was possible to install, in 1945, the first aluminium industries in Brazil, such as Eletro Química Brasileira S.A., founded by Américo Renê Giannetti, pioneer in the aluminium production in Brazil. Later on, Alcan Aluminium Limited purchased this aluminium plant and changed its corporate name to Alumínio Minas Gerais S.A.. The Votorantin Group’s CBA - Companhia Brasileira de Alumínio installed in Sorocaba (SP) was another aluminium pioneer undertaking and up to now explores the Poços de Caldas (MG) bauxite reserves. Over the period from 1970 to 1977, the yearly growth of the aluminium demand in Brazil was estimated at 15%. The projections then available predicted this demand achieving 700 thousand tons per year in 1985, and Brazil would then have to be prepared to supply this market without having its trade balance overweighted. In 1979, the aluminium production in Brazil was approximately 180 thousand tons per year as against an apparent consumption of 280 thousand tons, and this deficit had to be offset by a high imported volume.
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ALUMINA AND ALUMINIUM FABRICATION PROCESS The commercial-grade aluminium fabrication process necessarily goes through the alumina production stage pure aluminium oxide (Al203) - known as Bayer Process. Bauxite is the main ore used and it may contain gibbsite (Al203.3H20) or bohemite (Al203.H20). The bauxite components include sundry ores, iron oxide and hydroxide, quartzite, titanium oxide and other oxides that currently are not processed. In the Bayer Process, the bauxite is blended to the caustic soda in alumina precipitators heated to approximately 150ºC in the case of gibbsite – that is the Trombetas bauxite case. Should it be bohemite, a higher temperature would be required. The gibbsite mixed to the caustic soda reacts to form a sodium aluminate solution. The insoluble residues that are separated from the alumina by decantation and filtering, forms the red mud. The addition of fine alumina residues to the newly produced sodium aluminate makes the aluminium hydrate separation. The caustic soda is recycled and in large volume returns to the process. The aluminium is obtained by smelting calcined alumina in serial continuous current electric furnaces. The crude aluminium is used as ingots (gross aluminium), alloys and chemical components, besides and mainly as structural metal for multiple uses.
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DISCOVERY OF THE AMAZON BAUXITE
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During the 50’s, Kaiser Aluminium, a North American mining company, promoted exhaustive geological prospecting for bauxite reserves in the Amazon region, between the mouth of the Amazon and the Trombetas Rivers. Lacking early success, that undertaking was dropped. In the next decade, the Canadian company Alcan Aluminim Limited, - one of the worldwide leaders in the aluminium field – decided to carry out bauxite prospecting activities in the Middle Amazon, and a systematic exploration program was then launched in the region between the Counties of Manaus and Santarém, along the middle stretch of the Amazon River. In 1961, Alcan lost important bauxite concessions it held in Bokée, Guinea, Africa, hence its determined decision to search new bauxite deposits. Only ten years later, a large bauxite exploration project would be implemented in Guinea by a consortium with 50% state participation, the remaining 50% being splitted over the various world bauxite consumers. It should also be mentioned that another relevant factor urged Alcan towards an Amazon undertaking: in 1966, the English Guyanna, South America, declared its independence and one of its consequences was the Demerara Bauxite Company nationalization in 1971. Alcan then lost one of its most important sources of bauxite supply and new strategic ore deposits had to be sought.
RECONNAISSANCE WORKS
Still in 1962, Alcan commenced the
field reconnaissance activities – not quite easy a task, if one takes into account that the whole region was covered by dense virgin jungle. The works had the leadership of Dr. E. W. Greig (Alcan R & D’s chief geologist) and J. A. Staargaard. This team had the local support of Mr. Charles Christopher Fletcher, Managing Director of the Brazil-sited Alumínio Minas Gerais S.A., an Alcan Group fullyowned subsidiary. Initially, the geologists walked along the access trails opened in the jungle towards mountains close to nearby lakes and rivers discharging into the Amazon River. The outcomes of such task unveiled some ferruginous bauxite occurrences then
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considered of low quality. Even so, with basis on the preliminary data obtained from this initial reconnaissance program, Alcan filed an application with DNPM – Departamento Nacional de Produção Mineral (a government sector in charge of controlling mineral exploration) – for five permits covering 500 hectares each in order to expand the geological prospecting for bauxite. Two of those areas were sited on the Mathias Mountain and one on the Parintins Mountain, both in the State of Amazon. The remaining areas were located on the Juruti Mountain, in the State of Pará, south of the Amazon River. Soon after such permits were published in the Diário Oficial da União (the Federal Government Gazette) in April 1965, Bauxita Santa Rita Ltda. – BAUXISA, a Brazilian subsidiary of Alcan specifically formed to hold such permits, effectively started the field works. In May of that same year, the geologist Staargaard quit Alcan and was replaced by Igor Mousasticoshvily, who took over the position of Chief Geologist and BAUXISA’s Regional Manager. After one year working on those five areas granted to Alcan, the occurrence of low quality bauxite deposits estimated at approximately 29 million tons in the Mathias region, and other in Juruti with approximately 30 million tons, was confirmed. The ore quality was acceptable, however, the ore occurred in very thin layers and for this reason, its exploration would not be economically feasible. Regretfully, this early regional reconnaissance stage indicated no medium nor large bauxite deposits ranging from 100 to 200 million tons. Around mid-1966, both the Parintins and Juruti areas were dropped and all efforts then concentrated on Serra do Mathias. A geological reconnaissance effort was developed on the low adjoining mountains, but also this program was dropped around end-1966 since neither qualitatively nor quantitatively desirable ore deposits were found there. A geological reconnaissance was still carried out between Parintins and Santarém, to the south of the Amazon River, which could be reached by river navigation and also walking into the jungle for field investigation of the existing low mountains. However, nothing economically attractive was located there and also this program was dropped.
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As can be seen from the above, the earlier results of the geological surveys were quite discouraging. Over the first eighteen months’ survey, the strategy adopted by the geologist team was identical to those adopted by the other companies that carried out prospecting for bauxite prior to Alcan and just like them, found nothing feasible: their geological exploration was carried out by the side of navigable rivers or lakes. It was essential not only to locate bauxite reserves, but such reserves could not be over 100 kilometers afar from a navigable river to permit eventual production outlet, but also the quality had to be competitive in the consumer market. Since no attractive bauxite reserves were found by riversides or lakesides, it was decided to go farther into the very jungle. As mentioned above, the bauxite deposits normally occur on the flat top of approximately 70 to 120 meter high plateaux. On the Amazon region, however, access to such plateaux is impaired by the magnitude of the dense forest. For this reason, the exploration works on those regions were viable only with the utilization of a stereoscope, which permits observation of pairs of photos defining the occurrence of plateaux where bauxite will possibly be available. BAUXISA then used air photographs taken in 1957 by USAF – United States Air Force - for Petrobras and could identify high lands – possibly plateaux – on the mesopotamia (region between rivers) between the Trombetas and Nhamundá rivers, farthest North of the State of Pará, borderline with the State of Amazon.
TEAMWORK AND PIONEER CAMPS
As from October 1965,
prospecting for bauxite on those sites was intensified. Igor himself accompanied all logistics that were decisive for the success of this project as well as of the geological surveys. Initially, three field teams were formed, under the leadership of the geologists Helton Pereira, Vicente de Paula Oliveira and John Anderly – the latest mentioned a North American geologist commissioned by Alcan, helped by about 30 to 35 inhabitants of the region, known as “caboclos”. Together with Igor, such teamwork discovered the Trombetas bauxite. Later on, further two geologists and a mining engineer joined the original team.
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Prior to this, Alcan, through its mining engineer L. P. Patience, Ozair P. de Siqueira, then Alcan’s General Accountant, in Saramenha, Ouro Preto (MG), later appointed Director of MRN, and Maurício F. Xavier, BAUXISA’s Accountant, an office was installed in Manaus, capital of the State of Amazon, main urban and industrial polo on Northern Brazil. This office, sited in the São Raimundo District, was responsible for administration of human, financial and material resources required to meeting the field needs. The teams took the one-and-half hour to three-hour flight depending on the flight route of Serviços Aéreos Cruzeiro do Sul’s Manaus to Parintins (Amazon). From Parintins, they had eight to ten hours trip to reach Terra Santa where a Company base camp had been installed in a riverboat called “Gaivota” – a 14-ton, two-men crew motorboat with only one-meter draft to make sailing along small rivers easier during the dry season and anchoring on river-beaches and gullies possible. Prior to the “Gaivota”, in 1965, BAUXISA purchased in Santos (SP) the “Tatu-Bola” yatch for field support services. This boat was destined for maritime navigation and proved to be utterly inadequate to sail the rivers of the Amazon region and therefore, it was immediately demobilized. The tamers also used 3.0 to 5.0 HP motorboats for crew transportation, sailing up creeks – that are brooks flowing into bigger rivers and lakes. Such small boats were anchored on key-spots, on brook heads or wherever possible. Thenceforth, the crew walked until the pre-set working sites. Access by vehicles was impossible for a virgin forest was right ahead. Rudimentary tools carried on the crew’s own back, together with foodstuff, mainly canned food, camp materials and utensils, were used for trail opening so as to permit the crew to keep walking ahead. Despite the difficulties to carry such a huge load, only in exceptional cases when supplies were scarce, hunting with shotguns was permitted. Fresh meat also helped to break the repetitive canned food taste, thus increasing the crew morale. This already expressed the Company’s concern with unnecessary environment devastation. The prospecting equipment comprised basically a two-inch portable Empire Drill capable to drill up to 22-meter deep pits to collect two-inch samples. Four men operated this driller, one of them responsible for supervision and samples collection.
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During the reconnaissance stage and later on during the prospecting services, samples’ collection was aided by this portable driller or taken from canals dug inside the pits; they were then prepared in a sampling laboratory implemented in Manaus and sent to Alcan’s aluminium plant in Saramenha (MG), where a laboratory for chemical analysis was available. If favorable news were received from this laboratory, the geologists ordered digging further two or three pits with one-meter diameter and up to 20 meters deep in order to have the drilling test results confirmed. Finally, in January 1967, the availability of good quality bauxite on the Trombetas region was confirmed. Nearly simultaneously, between end-1966 and the next years, the other two teams discovered other mountains adjoining Saracá, such as Almeidas and Bacaba. Next, the remaining mountains named Bela Cruz, Aviso, Papagaio, Periquito, among others, were identified, until Cruz Alta was reached, the latest mentioned later discovered and explored by other company. Whenever the prospecting teams got into the jungle, a temporary camp was erected, always close to a clear water rivulet. An adequate space was opened and cleared to house the crew and a straw tent constructed for use as kitchen, storeroom and refectory. Then a barrack was erected to house the crew, inclusive of the technicians; a small football field was open, where also shuttlecock was played – and none of them could ever miss. Lasting-longer camps – then called base camps – were constructed of selected tree-trunks fastened with nails and lianas and covered with choice straw or canvas. In such cases, the open spaces were larger – as far as half a football field – and the camps were relatively comfortable and a greater deal of facilities were available. Loneliness in the jungle was nearly an insuperable problem, rather than the dump and forsaking climate, the insects or wild animals that, if not approached to by man, quickly moved away. Lacking radio, telephone or any other communication facilities, the crews were 1,000 kilometers afar by river navigation from Manaus or Belém, 300 km from Santarém and 180 km from Terra Santa, where the main base was settled. Ninety days was the duration of each solitude period, therefore, they had to be kept working hard. The alternative was the sport practicing after
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work, game-play after a tasty and plentiful refection. A hollow mind had to be avoided otherwise it would be filled with negative and nostalgic thoughts thus compromising the good performance of the team, essential for the success of the undertaking. Later on, reached that was the exploration and development stages, small communication and supply posts among the provisory camps and the main base were installed since the distance among them could be as long as 20 kilometers.
A NEW STAGE COMMENCES
The ingress in the Trombetas region
jungle could be considered as the starting point of the Trombetas Project. At end1966 and later in 1967, three teams – two coming from southeast sailing along the Sapucuá Lake and Saracá Creeks and the other from northeast sailing along the Batata Lake – discovered one of the largest worldwide bauxite occurrences, the largest of the Americas to this date. Five years of hard and persistent prospecting services went on; the crews faced all sort of difficulties and deprivation such as the insufferable insects action, mainly flies and ticks; the danger of venomous snakes and the legendary “Big Snake”; the forsaking hot and damp weather; the risk of tropical diseases and many other problems to worry about. However, the main objective was met. ALCAN great achievement was to delimitate a large worldwide scale bauxite reserve in the middle of the Amazon Jungle. That small geologist team, together with the “caboclos”, could carry out that impressive deed that would later be a great contribution to the Brazilian trade balance, at the same time driving this country forward to become one of the greatest worldwide bauxite exporters. It is worth emphasizing that this topmost discovery of approximately 1.5 billion tons of crude bauxite was performed at a very low cost. Until such huge bauxite deposits were found, the low of approximately US$ 66 thousands were spent in Brazil and no sophisticated equipment was required. Confidence, strength,
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enthusiasm, fellowship, spirit of adventure, organization, mainly the logistic support, and determination of all involved both in Canada and Brazil played a highly important role in this achievement. The lot factor also helped: they had the right persons on the right place at the right time. MINERAÇÃO RIO DO NORTE S.A. - The Alcan Group in Brazil incorporated MRN on 5th June 1967, soon after the bauxite deposits were found. As from that moment, its mission would be to develop an undertaking envisioning the intensive exploration of the bauxite ore discovered by Bauxita Santa Rita Ltda. The Brazilian and Canadian technicians then carried out a technical and economical feasibility study that would be adopted as reference for future investments. Preliminary studies showed an adequate site for installation of a port on the Trombetas River bank and construction of a railroad not longer than 30 kilometers connecting the port to the Saracá Plateau mine. The access to the mine site would be easy, the soil was relatively plain and this would facilitate the road opening, let alone the navigable river close to the ore deposits. It is worth mentioning that over the period from end-60’s and early-70’s, other groups, such as Kaiser Aluminium, Pechiney, Alcoa and Daniel Ludwig, and later Billiton Metais, also carried out prospecting for bauxite on the Trombetas and adjoining regions. Kaiser earlier and Pechiney somewhat later waived their undertaking soon after the Trombetas Project implementation decision was disclosed in 1975. In 1992, Cruz Alta ore deposit that Alcoa and Billiton had earlier purchased from Daniel Ludwig, was incorporated to MRN’s reserves that then became still larger and more competitive. As from 1974, the Trombetas Project was integrated to the government program known as “Polamazônia”- Programa de Polos Agropecuários e Agrominerais da Amazônia – that delimited fifteen areas for economic activities development. Trombetas Polo comprised Monte Alegre, Alenquer, Óbidos and Oriximiná Counties and provided for strengthening of urban nucleons, development of river navigation, support to the bauxite exploration and other economical activities such as limestone grinding and rice cultivation.
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It should be emphasized that, besides the Trombetas bauxite, other important ore reserves were discovered in Brazil about the same period: iron, manganese, gold and copper reserves on the Carajás Mountain (PA); tin in Rondônia; china clay and bauxite on East Pará; besides gold on South Pará and Mato Grosso. The position of the Brazilian northern region as one of the ore-richest regions of the whole planet was then consolidated. The Radam-Brazil Project was the master key that unlocked the door of the Amazon region to the rational ore and wood exploration through a radar mapping system that thenceforth was adopted all over the country. This system permitted taking air photos from 11 thousand meters high, even with clouded weather, getting the profile of the whole surface uncovered by vegetation.
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A HISTORICAL FACT
At end-October 1965, the first
drill hole was located some 200 meters from the southwest border of the area known as Saracรก IV, on the Saracรก Plateau, at present practically mined out. Coincidently, the geologist Igor Mousasticoshvily conducted the crew in charge of this drilling service. On the first day, they drilled approximately eight-meter thick overburden. On the second day, they went deeper and drilled through the one-meter nodular bauxite and laterite layers each and finally reached the bauxite bed ranging from four to five meters in thickness. Normally, the Trombetas region plateaux overburden bauxite ratio is 4- 6 meters to 1 meter. In some plateaux, however, this ratio may revert to reach 1 to 5 overburden:bauxite. However, as analyses results had not yet reached them they did not know that they had just found the Trombetas bauxite. But the team felt something new, unusual. The sound and the internal friction of the drill against that layer differed from what they had observed in other areas; the color was clearer, reddish rather than dark-brown; the material was friable, coarse sandtype, bearing less clayey material when compared to the other prospected areas. The news on the availability of good quality bauxite within the desirable parameters and even beyond expectations was learned only around end-January 1967, when the analyses results were received from Saramenha laboratory.
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A PROJECT IN THE MIDDLE OF THE JUNGLE
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Implementation of the Trombetas Project – as it would later be named – on the right bank of the river that bears the same name, commenced soon after incorporation of MRN, on a locality then known as Sitio Conceição. The 494hectare area was purchased from Izaura Gomes de Souza Costa on 28 June 1970, but the ownership immission was granted by the State of Pará only on 9 December 1980, under number 075, in the County of Oriximiná. In straight line, this locality that was later known as “Porto Trombetas”, is sited 80 kilometers from the county seat, 240 kilometers from Santarém, 400 kilometers from Manaus, 900 kilometers from Belém and 1,100 kilometers from the mouth of the Amazon River. Right there, where previously nothing ever existed but the jungle, an urban and operating infrastructure would be implemented to permit bauxite exploration. The first economical ore reserve on the Saracá Plateau was discovered in 1967 and by the end of the 60’s, mining permits covering 63,000 hectares of crownlands – valid to this date – were either covered by exploration permits or had priority prospecting applications secured. Later on, in the 80’s, MRN tried to obtain from the Federal Government a new special concession covering an area of approximately 87,257 hectares surrounding the ore deposits. However, this never came through for MRN waived its application due to the creation of the approximately 429,600- hectare Floresta Nacional Saracá-Taquera, through the federal decree nr. 98,704 dated 27 December 1989.
NATURAL AND CULTURAL ASPECTS OF THE REGION
Despite
o
Porto Trombetas location only 1.5 South from the Equator circle, its climate is tropical, with the dry season from July to November – the “summer time” – and the rainy season from December to May -June – the “winter time”. The yearly rainfall ranges from 2,000 to 2,200 millimeters but may reach 2,800 millimeters. Despite such climatic characteristics, the temperature is mild, ranging from 20 to 30oC. During the “winter time” rains are constant and often torrential, adding difficulties mainly to the unprotected soil. Vegetation is a barrier that reduces the rainwater strength and the roots control its flow; the rainwater so reaches
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the creeks without eroding the soil. However, as the vegetal cover is removed to expose the soil, the sun acts on the natural cohesion of the particulates and the heavy rains carry them away, causing erosion, and deep grooves on the soil slightly later. Removal of the thin humus layer – fertile soil that arises from decomposition of the vegetation – that covers a soil very often completely barren is the basic problem of the rain action on the de-bushed soil practically all over the Amazon region. In Porto Trombetas, for instance, the mine area soil is more clayey whereas it is sandier on the port area. In order to reduce the rainwater speed on the areas where the thick vegetation has been removed, reforestation cannot be neglected. Reforestation of the plains and plateaux does not follow the same procedure because of the soil diversity and accumulation of organic matter. The forest is of higher quality close to the highland borders, right where the laterite and bauxite were nearly outcropping in the early stage of the exploration services. On the Saracá plateau, some 30 vegetal species were identified, such as “copaiba”, “angelim-da-mata”, “cumaru”, “muirapiranga”, “araracanga”, “ucuubarana”, “louro amarelo”, “pau d’arco” and “castanheiro-do-pará”. The wood is of good quality and extremely beautiful. Their trees may reach from 20 to 25 meter high but some of them may reach up to 45 meters. Their trunks’ diameter rarely exceeds one meter but in some species it may reach two meters or more on their base. Actually, the Amazon forest is a mosaic in that dozens of forest types are abruptly or smoothly interwoven. There are three types of forests among the lowlands and highlands, besides two types by the Trombetas riverside: meadows – periodically flooded areas – and floodland, formed by low-level stagnated water. The forest growing on firm land close to the river is dense, plenty of palm-trees, many lianas and beautifully dominating trees, such as “itaúba”, “angelim-da-mata”, “castanheiro-do-pará”. Ten kilometers away, other types of trees, such as the “angelim-pedra” – huge trees, like the “maçaranduba” and “mandioqueira” grow. On the highland, the wood produced by the “matamatá”, “abiurana”, “breu”, “quinarana” and others are considered of low quality. High-size palm-trees on the
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higher lands are scarce, and on the lower lands the available timber is practically of the same type of those already mentioned, in addition to the “mirajuçara” and “amapá”, known as “cipó d’água” or “vaca-leiteira” because of its milky sap, similar to the cow milk. Similarly to the flora, the fauna of the region also presents a variety of species: pumas, monkeys – mainly bugio – coati, Bandera anteater, deer, tapir, spotted cavy, pecari angulatus, whitelipped pecari, three-toed sloth, and many bird species like macaw, parrot, parakeet, rassow, partridge and others. The country is also snake-rich of various types, such as rattlesnake, lianas, false coral snake and “pico-de-jaca” bushmaster. Since the Trombetas Project construction commenced to this date, hunting on the whole region is strictly prohibited. MRN became a great cooperator with IBAMA – Instituto Brasileiro de Meio Ambiente e dos Recursos Naturais Renováveis (Brazilian Environment and Renewable Natural Resources Institute) in preserving the flora and fauna, mainly the turtle control and preservation project known as “Quelônios da Amazônia”, also living in the Trombetas River. The Trombetas River mouth is 60.3 nautical miles (111 kilometers) far from the site where the ore shipping port was installed. The Trombetas River does not run through a much sinuous bed, with no meanders and very few rapids exist, then its navigability conditions is favorable even for high-draft ships. The Amazon River mouth is the only limitation, for its estuary is shallower, mainly in the dry season. Even so, the Trombetas is considered a small river when compared to other giantsize rivers like the Amazon, Tapajós, Xingu, Negro and Madeira. A characteristic phenomenon of the rivers of the region, including the Trombetas, is the unsteadiness of the water level, which variation over the year is approximately eight meters, reaching the minimum level in December and the maximum level in June, on which occasion the meadows are flooded. Like the great majority of the Amazon region rivers also the Trombetas has a great variety of fishes, like the “Tucunaré”, which may easily reach ten kilos, the surubim, dourado. arraia and caribe – the latest mentioned not of the aggressive type, differing from the São Francisco River caribe – and the pirarucu (arapaima gigas). Among all these fishes, the legendary and mysterious porpoise is a
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marked presence not only in the Trombetas river region, but also in the whole north region. Alike the porpoise legends, other cultural features of the region have attracted the interest of many studious persons, mainly concerning the local population. Between the XVI th and XVII th centuries, various populations inhabited the lakes and river banks. The Trombetas River was then called Kahu and the Kaxuyana people – that means “Kahu people”, of the Karib language root - predominated there. There are indications from archeological investigations that between 205 A.C. to the post- Colombian period, the Konduri indigenous people lived on the region between the Low Trombetas and Faro Lake. They were ceramists and agriculture was not an alien activity to them; their hamlets were set on highlands or riverside meadows. Besides the ancient indigenous populations, the Quilombos remnant population is also a marked presence on the Trombetas River banks. Along the XVIII and XIX Centuries, negro slaves ran away from their “owners” who were farmers of the northwest and various other Amazon regions and penetrated deep into the woods, sailing upriver walking along the Trombetas river banks where they settled their communities and cultivated the collective land use habit. Such communities were known as Quilombos. It is calculated that the Oriximiná quilombola population alone amounts to some five to six thousand inhabitants scattered on approximately 20 communities along the Trombetas, Erepecuru and Cuminá rivers. Their ancestors lived in the Curuá, Campixo, Turuna and Puama quilombos, that were the sites chosen by the slaves because they were upstream the Trombetas River rapids, and the access by their pursuers that intended to bring them back to the farms in Óbidos and Santarém was more difficult. Up to this day, the Trombetas’ negros live from the rivers and extractives, like the indigenous population. They may sail many hours by boat to collect Pará nuts, fish in the lakes and hunt. They also cultivate small manioc plantations to produce flour.
AMAZON “QUILOMBOS”
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lombo” means forest camp or settlement. A total of 724 “quilombos” were recently identified in Brazil, some of them formed in the XVII century. The largest “quilombos” concentration - 259 - is located in the State of Bahia. The highest percentage of negro population concentrates in Bahia, followed by Amazon, Pará and Maranhão. There is no accurate information on how many negro slaves reached the Amazon region - around 53 thousand is the estimated number. They arrived in Belém and thence scattered all over the region where they worked as male/maid servants or were alternatively hired to construct fortresses, raise cattle or to work in mining, agriculture, transportation, ship construction and other activities. Many slaves ran away from their owners’ plantation quarters – a reaction against the life conditions they imposed to them – and got themselves organized into “quilombos” in the vicinities of Amazon towns or in the hinterland. They settled in the State of Maranhão (Maracassumé and Turiaçu Rivers), on the boundaries of the State of Maranhão and Pará (Gurupi River), in Amapá (Oiapoque and Calçoene Rivers) and in the State of Pará (Curuá, Trombetas, Paru do Oeste or Cuminá and Tocantins Rivers). Besides the ancient indigenous populations, the Quilombos remnant Trombetas and was the first negro community to have its rights to the land where they settled down recognized as provided for under the 1988 Constitution: in 1995 they got their ownership writ over 790 hectares of land.
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THE UNDERTAKING COMMENCES
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Approximately three years elapsed from the incorporation of MRN in 1967 and the effective commencement of the works; an undertaking of such a magnitude required a great deal of planning. The engineering services started early in 1970. As Alcan Canada’s bauxite deposits in Guyana were effectively nationalized, the Trombetas Project development became a priority for them. In February 1970, MRN sent a letter to SUDAM – Superintendência de Desenvolvimento da Amazônia (Superintendence for Development of the Amazon Region) requesting information on the fiscal incentives this project could enjoy, and SUDAM’s answer was encouraging. Simultaneously, a tender was open for implementation of the project, originally designed to produce one million ton per year of washed and dry bauxite. Serete, an engineering company with headquarters in São Paulo (SP), won the bid and subcontracted Soros, port experts, to carry out the ship loading terminal conceptual design. This task had the support of an Alcan R & D affiliate, also Canadian, well acquainted with bauxite mining projects acquired in Guyana, Jamaica and Malay. The services commenced around end-1970.
OVERTAKEN BY CELERITY
The Trombetas Project comprised
open-sky mining, crushing and ore washing close to the mine, drying and shipping installations. Ownership immission and the first mining permits on the Saracá Plateau were granted to MRN in May 1970. By then, construction of the access road to Sítio Conceição, the selected site for installation of the bulk load terminal, had already been completed. By then, the well-known, wooden-made Pioneer Camp, preserved to this date, was constructed by Santarém contractors close to the right bank of the Trombetas River. The Terra Santa base camp was transferred to the Pioneer Camp in the second half of 1970. Simultaneously, a small airport was constructed on a chosen area close to the port. This greatly facilitated access from the prospecting camp in Terra Santa to the job site, formerly done by jeep – 80 km away crossing the forest or,
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alternatively, by river navigation from Santarém through Oriximiná. The airport, then only 700 meter long and sited on a 2,300-meter space opened in the woods was surfaced with laterite. It became operational on 18 January 1971. The first D-8 tractor unloaded in Porto Trombetas on 20 December 1970 carried out deforestation. The first project engineering in repor t-form prepared by Alcan was ready in 1970. The budget estimated an investment of US$ 42.6 million at the production level of 1.0 million tons per year and FOB sales price of US$ 8.75/ ton. As can be seen, too high an investment and a comparatively low foreign exchange inflow. The long-term sales contract to be entered into by and between MRN and Alcan Bermuda, sole taker of the whole yearly production, was submitted to the DNPM and its approval granted in June 1971. Exports were estimated to commence around end-1973 or early in 1974 at the longest. However, around end-1970, the need to replace the 1.0 million ton Guyana captive bauxite supply it would lose soon after the forthcoming nationalization of their ore deposits – which came true in January 1971 - drove Alcan to consider an alternative one-million ore supply source, and the rational consequence was to add this one-million bauxite volume to the undergoing Trombetas Project engineering studies. The production scale economic aspect was a factor that would add competitiveness to the Trombetas Project. Forthwith Alcan in Brazil got organized with a team of professionals of the highest competence to carry out the Trombetas Project implementation, among them the following: Ivo Barone, Benone J. Lara, Everaldo N. dos Santos, Sergio R. C.Albuquerque, Eurico Pappalardo, In March 1971, Christiani Nielsen and Andrade Gutierez – the latter to carry out earthmoving – were selected to implement the works. Still in 1971, they started working on the following: camp construction, 28 km railroad platform connecting the Saracá plateau to the port selected area, and construction of the site installations. Both companies were engaged on such works until May 1972.
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Around mid-1971, two happenings caused significant changes in the Trombetas Project. The first was a communication from the Brazilian Government to Alcan, in August, requiring the national participation in the undertaking and increase in the production scale. The second was the effective delivery of Demerara bauxite mining installations by Alcan to the Guyana Government in June 1971. Alcan then decided to increase the bauxite production level to three million tons/year and review the construction schedule; exports commencement was postponed to January 1975, at the level of two million tons, to reach three million tons in 1977. The possibility to export good quality run-off-mine ore – direct shipping ore – no washing and no drying required - was considered to meet emergency cases, pending on the priority to be given to the shiploading installations. Over the two-year duration of this stage of the project development, Serete and Alcan R & D obtained practically all quotations for the mining, transportation, beneficiation equipment as well as crusher, washer, dryer, ship loader, power station, among others. For the Townsite planning, the Architect and Urbanist Bratke, responsible for a similar project done for ICOMI Co., at Porto Santana, in Amapá, was contacted. As he could not accept such commissioning, he indicated his assistants Bofill & Mazzei to design the Porto Trombetas urban nucleon.
PROJECT DISCONTINUATION AND RESUMPTION
During 1971 and 1972, the international bauxite market price dropped sharply due to a marked downturn in the world aluminium market. Additionally, Alcan was confident that its alumina refinery in Quebec no longer ran the risk to become short of bauxite supply despite nationalization of the Guyana bauxite deposits in 1971. It continued on the high side mainly due to the above-mentioned aluminium market downturn and consequent depressed bauxite demand – the market lacked consumers interested in buying bauxite. As a consequence, on 24 May 1972, the Trombetas Project was discontinued. All construction activities then with 550 men engaged in, were paralyzed. Everyone involved in the project implementation had to be quickly de-mobilized; the same
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happened to furniture, utensils, equipment and vehicles… Only a small crew was kept to take care of the existing construction and installations so far carried out, the then called Care-taking Group or Project. The ongoing constructions amounted to 4,200 m2 industrial buildings, 8,300 m2 houses and temporary quarters, 30 km of cleared railroad bed, with platform earthmoving done, which comprised two million m2 cleared area and 0.2 million m3 of earth removed, besides the airport for small airplanes. Over the period from June 1972 to December 1974, Alcan, in close contact with Companhia Vale do Rio Doce – CVRD reviewed the possibility to resume the project, this time admitting at least one more Brazilian partner. In December 1972, a Memorandum of Understanding was signed by Alcan Alumínio da América Latina S.A. and CVRD providing for a joint feasibility study of the project. This Protocol also provided for the basic conditions for resuming the Project, with 51% minimum domestic equity participation. With the purpose to attract national investors and upon suggestion of Prof. Dias Leite, the then Minister of Mines and Energy, Companhia Brasileira de Alumínio – CBA, then the only Brazilian aluminium producer, was invited to visit Porto Trombetas. CBA’s Director, Miguel de Car valho Dias, visited Trombetas in 1971, but only in 1973 CBA decided to subscribe for 10% share in MRN’s capital stock. This was the only additional domestic equity par ticipation ever materialized. In December 1971, Alcan invited CAEMI Group’s ICOMI, engaged in a manganese exploration project in Amapá, nearly neighbor to Porto Trombetas, to participate in the project. Their reaction was favorable, however, this never materialized. Around end-1973, when the new share capital structure studies were completed, it was decided to implement the Trombetas Project under a new shape. As from 1974, bauxite prices in the Atlantic marked went up burdened that they were by the levies (tax falling on ore exploration) imposed by the Caribbean and African bauxite producing countries, the Trombetas Project implementation feasibility scenario reverted. The rate of return on its very high investment justified
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implementation of this sizeable project. Considering that Alcan’s take option was only 1.2 million tons per year the major difficulty to have this project resumed was to get bauxite consumers secured under long-term sales contracts to take the three-million-ton bauxite that was the minimum critical level. Therefore, it was essential to have long-term sales contracts signed, also essential under the project financing characteristics. Early in 1973, a team was organized by CVRD, under the leadership of Lauro Boavistano Marinho, CVRD’s Finance Superintendent, and Alcan, with the support of CVRD’s trade offices in Europe and USA, whose mission was to invite prospective potential bauxite consumers to effectively participate in MRN which reorganization was underway; this materialized under the impact of IBA – International Bauxite Association’s out-spring. On 11 June 1974, two Brazilian and seven foreign companies signed the basic corporate documents whereby a new MRN was construed. The following was MRN’s share capital structure on its reorganization date: Companhia Vale do Rio Doce (41%); Alcan Aluminium Limited (19%); Companhia Brasileira de Alumínio (10%); Mineração Rio Xingu Ltda. (5%); Reynolds Alumínio do Brasil Ltda. (5%); Norsk Hydro A/S. (5%); A/S Aardal og Sunndal Verk (5%); Instituto Nacional da Indústria (5%) and Rio Tinto Zinc do Brasil Ltda. (5%). CVRD, holder of 41% equity participation, was prepared to assign up to 25% of its equity participation to Brazilian companies interested in the project, but this never materialized. The social object of MRN, formerly a private concern then reorganized as a nine-partner joint venture, was and still is to mine and trade in bauxite, as well as to perform all activities pertinent to a company of this nature, that is, to prospect for bauxite on its own or third parties’ account, mine, beneficiate, trade in, import and export bauxite and any other ores and mineral substances. CVRD and ALCAN jointly sponsored the reorganized project and up to now, assisted by the remaining partners through their representatives in the Board, conduct the destiny of MRN, supported by the Technical Committee – formerly
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Construction Committee - Finance and Commercial Committees, the latest mentioned organized in 1979. Such Committees have advisor y capacity to provide assistance to the Board on their respective exper tise areas and give their opinion on the matters discussed at the four yearly ordinar y meetings, recommending approval, turndown or deferral of operating and investment needs proposed and justified by MRN’s Executive Committee. Each Committee has its Terms of Reference duly approved by the Board, and they should abide by their respective rules. At first, the Company’s head offices were in Belém, (PA), on 1,114, Almirante Tamandaré Avenue, and Maurício F. Xavier managed its day-to-day activities and branch offices on 200, Praia do Flamengo – 5th, 6th and 19th floors – Rio de Janeiro and most of MRN’s executives, including the Executive Committee had their seats there. During the Project development, a suppor t office was installed on 827, Rodrigues dos Santos Square, Santarém, PA, headed by Raimundo Aquino da Silva. MRN’s share capital was Cr$ 500 millions. On 17 October 1974, considering the conditions then prevailing, SUDAM approved the project submitted by MRN, which meant that the Company would enjoy ten-years’ Income Tax exemption extendable by fur ther five-years. Besides enjoying the benefits any new company installing on the area was entitled to, the Brazilian Government guaranteed financing funds from BASA – Banco da Amazônia S.A. and FINAME – Agência Especial de Financiamento Industrial. The Management Agreement entered into by and between CVRD and Alcan Empreendimentos S.A. enforceable over the project construction stage was signed on 26 Februar y 1976, Alcan Aluminium Limited acting as inter vener. In the first project stage, prior to the Company reorganization in 1974, the construction investment budget was estimated at US$ 117 millions or US$ 39.00/ton of bauxite produced for a sales price of some US$ 9.00/ton FOB. In the second stage, the estimated budget jumped to US$ 390 million.
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Over the period from 1975 to March 1976, Mr. Harr y Hamilton, an Alcan Canada capable and experienced professional, was the resident engineer, in charge of the field works; however, the project construction remained stagnant. In April 1976, a new Executive Committee was elected and the Trombetas Project construction actually commenced. Complying with the provisions of the Management Agreement, CVRD appointed three directors and ALCAN two directors. The Executive Committee then elected was as follows: Director President
Idalmo Mourão
Administrative Director
Mauro da Costa Faria
Director of Finance
André Gustavo Richer
Technical Director
Eurico Pappalardo
Director of Control
Ozair P. de Siqueira
Altino Cunha, General Project Superintendent, who repor ted to the Technical Directorate, had two Superintendents repor ting to him: Luiz Carlos Costa Pinto, Engineering, and Rober to Reis Fadel, Supplies. Mr. Dennis Braz Gonçalves, Control Superintendent repor ted to the Control Directorate and Naldir Lourenço de Almeida, Finance Superintendent, to the Finance Directorate. All of them were based in Rio de Janeiro. Jorge Borges Rezende, the Construction Superintendent, Aluízio Guimarães, Assistant Superintendent, and four coordinators: Renan Branco N. da Silva, Planning, Paulo Rubens A. Car valho, Production, Rubens M. Toledo, Control, and Luiz Fernando Pires, Technical, were based in Por to Trombetas.
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A Pioneer Undertaking | 43
O denominado THE GOLDEN BOOK Don’t be wondering there was really a golden book.. It was a golden-cover publication on the Trombetas Project bearing the title “Trombetas Bauxite Project”, then known as “GOLDEN BOOK”, which contained relevant data on the project. It was edited in February 1975, in two volumes, the first one the “Capital Cost Estimate, 3.35 M TPY”, and the second, “Operating Cost Estimate and Operations” and “Organization Charts, 3.35 M TPY”. Under this publication, the capital investment to have the project implemented was estimated at US$ 162 millions. Such publications detailed the estimated budgets then prepared by MRN, under the responsibility of Alcan Canada’s Mr. E. Frost, with the support of CIE – Internacional de Engenharia (a division of Companhia Morrison Knudsen de Engenharia). Mr. Frost was highly experienced in the implementation of bauxite mining projects acquired in the construction of Jamaica and English Guyana bauxite mining installations. Those documents played an important role in the finalization of the negotiations with the shareholders, which approval was required to have the project going off the ground, the so-called and anxiously expected “green light”.
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Mr. Pat Patience (photo center) drinking from the “cipó d’água”, a liana type known as “vaca leiteira” (milk cow), 1973. Author collection.
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Temporary camp on the bottom of Parintins Mountain, installed with pre-fabricated aluminium houses, 1964. Author collection.
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Pioneer Camp, still under construction, 1970. Author collection.
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First D-8 tractor unloaded in Trombetas. It was already operating when unloaded from the barge. 1970. Author collection.
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Mr. Miller, general construction manager during the period the project was under Alcan’s coordination, on board of the “Perola do Nhamundá”, in the Trombetas River, 1970. Author collection.
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A take from the construction contract signing solemnity, Hélio Bento de Oliveira Mello (to the right), on behalf of MRN, and Construtora Andrade Gutierrez representative; Ernesto Geisel, Brazil’s President, and remaining authorities who participated in this solemnity that took place on 12.01.1976, in Belém, at the State of Pará Government Palace. Author collection.
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“Tatu-Bola� yacht, purchased in Santos (SP) by the team in charge of the project implementation, that proved to be utterly inadequate to sail the Amazon region rivers. 70 Decade. Author collection.
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Airport surfaced with laterite, 1971. Author collection. Passengers’ station, 1971. Author collection
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During the early drilling services, the prospectors could not even suspect that they had discovered a large bauxite reserve that would give origin to the Trombetas Project. This take shows some of the executives who conducted the services already in the first “Temporary Camp” in Trombetas. From left to right, the geologist Igor Mousasticoshvily, DNPM’s representatives and Eurico Pappalardo, responsible for the project implementation, 1972. Author collection. Page 59 Saracazinho’s temporary camp. 1972. Author collection.
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Pioneer Camp, still under construction, 1970. Author collection.
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Bauxite mining activities on the Saracรก plateau, 1987. Author collection.
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Unloading operation of Andrade Gutierrez’ “Solimões” tractor, the first tractor to arrive in Porto Trombetas during the definitive project implementation stage, March 1974. Author collection.
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The project
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IMPLEMENTATION OF THE TROMBETAS PROJECT
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As the works progressed at a slow rhythm, around mid-1977, MRN decided to hire a management team to supervise the project implementation that commenced in March 1976. Such services were awarded to Montreal Engenharia S.A., linked to International de Engenharia – IESA, an integrated and traditionally known consulting firm in various fields of activities, with offices in Rio de Janeiro. In consonance with MRN executives, Montreal managed the Trombetas Project construction during its most critical phase. On 15 November 1977 Montreal’s first engineers arrived at the job site and in January of the next year, Montreal’s team was nearly complete. Some erection specialists were hired later. MRN’s middle-management was formed to act as company’s representative team and in close liaison with its executive officers, played the role of construction manager of the whole industrial complex, taking all required measures to have the whole equipment erected in the best possible manner so as to ensure smooth operation in the future. The construction management had to conciliate the interests of the contractors hired to carry out the job, the engineering company’s and MRN’s, without losing sight of construction costs and targets fulfillment. The whole team never failed to be attentive to planning revisions and resulting material and financial resources, service programs and measurements, job progress calculation, labor allocation, productivity improvement search.
THE PROJECT AND TEAMS INVOLVED
MRN total bauxite reserves,
washed and dry-basis, amount to 700 million tons. Producing 3.35 million tons per year, dry-basis, such reserves would be exhausted in 150 years. The Trombetas bauxite reserves are paramount when compared to the other worldwide reserves for the following reasons: their large volume and commercial grade, open-sky mining, nearness to navigable rivers – that are the Trombetas and Amazon Rivers - consequently easier production outlet by river transportation in cargo vessels of up to 65 thousand ton capacity. Besides all such advantages, greatness because of the bauxite deposits, the country political stability and the high Amazon region electric power potential permit medium and long term planning.
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The bauxite deposits are located within 50 km radius from the port. The Saraca plateau (4,200 hectares) is of immediate interest to MRN, followed by Almeidas/ Bacaba (1,040 hectares) and Aviso (1,460 hectares), or a total of approximately 6,700 hectares. Saracá, the first bauxite deposit to be mined, is sited 30 kilometers away from the port. The conceptual project comprising bauxite mining, beneficiation, shipment and transportation by river navigation was designed by Alcan Canada and the Brazilian IESA detailed the engineering services. The original project contemplated installation of a crusher, cargo handling, instrumentation and control systems, besides the ancillary buildings, on the mine area; and on the port area, discharge, handling and washing systems, waste treatment and transportation, the dryer and dry-bauxite storage, shiploader and respective ancillary buildings. IESA was also responsible for the approximately 30 km railroad design connecting the Saracá mine to the port storage area. When the basic project was under review, Alcan considered the possibility of future expansion from 3,350,000 tons/year to 8,500,000 tons/year in a second stage. Some units were then over-dimensioned, and this was referred to as “way paving”. IESA also carried out preliminary studies, specifications and detailed engineering for implementation of a complete communication system between the mine and port areas, comprising HF, VHF, telephone, trop-transmission and wave propagation systems. Construtora Andrade Gutierrez S.A., a company with headquarters in Belo Horizonte (MG), won the bid for the civil construction. CONSAG was already highly experienced in project development in the Amazon region. In 1967, it was involved in the Belém-Brasília road construction and in the subsequent year, won the bid for construction of the Manaus-Porto Velho road. However, the following decisive fact drove CONSAG to participate in the Trombetas Project tender: this company was in charge of the Perimetral Norte road construction, with access through Cachoeira Porteira, still a virgin forest,
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to the main axle of the future 220 kilometer road access. When this job reached its peak, the contractor had around 800 persons engaged on the services. A supporting structure was available at Cachoeira Porteira, 150 kilometers away from Porto Trombetas, on the junction of the Trombetas and Mapuera rivers, where 100 families were housed. In addition to lodgings and houses, other facilities had been constructed, such as school, hospital, market, club and guesthouse. CONSAG had constructed only 14 kilometers of Perimetral Norte when the Transportation Minister ordered its discontinuation. Right on that moment, MRN open the Trombetas Project tender and CONSAG, that already had personnel and machinery available not far from there, was able to present the best market conditions. The contract MRN entered into with CONSAG provided for construction of the mine industrial area, including the crushing, beneficiation and loading installations, water and oil reservoirs, auxiliary tanks, offices, maintenance shop, warehouse and other ancillary installations, railroad for ore transportation and approximately 30 kilometers long road alongside the railroad connecting the port to the mine. The contract also provided for construction of the port industrial area, which included, amidst other installations, the port on the Trombetas River bank, shiploader, washing, drying and filtering systems, bauxite storage silo, handling systems, power station, pump house, water treatment system, streets and access to the cargo wharf, railway station, laboratory, maintenance shops, warehouse and administration buildings, water intake, power and light distribution, communication systems and a general cargo wharf. Besides the industrial installations, under CONSAG’s scope of work were the townsite, including various standard-type houses, administration building, commercial and sport center, school, hospital, guesthouse and general community services. The contract also provided for reconstruction of the airport, construction of water ancillary installations, power, light, fuel, materials and
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equipment unload system, construction of ancillary wharf berths and docks, operation of sawmill and stone-break system, inclusive of transportation of all produced material. CONSAG was also responsible for supply of foodstuff to the permanent and temporary personnel engaged in the construction tasks, including purchase, transportation, preparation and distribution. On its turn, CONSAG hired the following sub-contractors: CEMSA – Construções Engenharia e Montagem S.A., BGOPSA – Brasilia Guaíba Obras Públicas S.A., Geotécnica S. A., Ciba-Geigy Química S/A; ENGESUB – Engenharia e Serviços Submarinos Ltda. and Ramos Alves & Cia. Ltda. The team earlier hired to construct Perimetral Nor te was transferred to the Trombetas Project site installations, and this represented six-months construction schedule shor tening, since one fifth of the equipment and other necessar y resources were already available on the region. Some 400 heavy equipment items belonging to CONSAG, besides transpor tation vehicles, were on the job site. Some of such machines were on the Amazon region over ten years. On those days, Porto Trombetas had only the base camp known as “Saracazinho”, which was used to house the geologists and their team during the prospecting period. Additionally, there were some cottages, six wooden houses and the Pioneer Camp, constructed prior to 1971, when the C.Nielsen/CONSAG consortium was hired or even before, by MRN itself. The Cachoeira Porteira nucleon close to the navigable stretch of the Trombetas River, where CONSAG’s crew was settled, could provide support to the construction services. Many workers had to reach Porto Trombetas by boat every day - a two-hours’ trip. The new construction stage commenced on 1 April 1976. On 19 February, a crew left Cachoeira Porteira to Porto Trombetas, where some lodgings had been constructed, others recovered, as well as a few new houses. On 26 March,
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300 CONSAG employees arrived in Porto Trombetas. The best possible housing arrangements were made to accommodate them and construction effectively commenced as scheduled.
THE JOB COMMENCES
The first stage of the construction works
commenced with deforestation; as there was nowhere to store the wood, the services were carried out by steps. First, the mine was open. Due to the sandy soil characteristics, most of the roots were not deep, offering no major difficulties to be pulled out. Next, some 780 hectares were deforested to open space for the mine area, road and railway, borrow areas, townsite and port area. The structure already installed by CONSAG at Cachoeira Porteira was the first support to the Trombetas Project. In order to figure out what did this mean on that occasion, CONSAG’s Project Superintendent Paulo Saliba arrived to the job site with his wife when the area was still a dense forest, and at first, they lived in a “cage-boat” he brought from Manaus. Five engineers and their families settled down in a sort of “cart-village”, which was nothing more than job trailers along the Trombetas riverside. The first houses on the job site to house engineers and employees of various ranks commenced outcropping soon after. The first topographical surveys of the region were also carried out. As the Trombetas Project progressed, the Cachoeira Porteira urban nucleon increased accordingly, with an ever-growing number of houses for married workers. During the week, they were housed in the job site lodgings and at the weekends, air flights to Cachoeira Porteira were made available to the married people for family visits, which like in Trombetas, an airport was available. That shuttle flight was very tenderly named the “love flight”. In emergency cases, airplanes were also used. CONSAG had a four-Douglas DC3 fleet for twenty passengers plus four-crew members, or 1,800 kg load each, with daily flights that met the flight needs of Manaus, Trombetas and Santarém, besides two executive airplanes for a maximum of five passengers each.
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The 30-meter wide and 1,250-meter long runway permitted landing of small and medium-size airplanes. A radio beacon provided aid to the air traffic. That was a twenty-five minutes flight from Trombetas to Cachoeira Porteira while by yatch two hours and seven hours by ordinary boat. Each two days, a boat also left Santarém carrying 300 persons. On the construction peak (October 1977), the average number of boats and barges daily anchored to carry both passengers and load reached 14 and 21 respectively. This high airplane and boat movement gradually shrank as the number of available houses in Porto Trombetas went up and the workers’ families joined them at the job site. The counterpart was Cachoeira Porteira shrinking, however a small urban nucleon with the respective infrastructure was kept there. CONSAG also had various supporting-offices in Manaus, Oriximiná, Belém, Santarém, Rio de Janeiro and São Paulo. In the Belém office, CONSAG’s Social Assistants and Psychologists also provided special and personal support to people residing in Trombetas in order to get them better fitted and integrated to that new and isolate environment, far from families and friends. Due to this labor-integration difficulty, mainly unskilled labor was recruited in the Amazon region - Belém, Santarém, Manaus, Óbidos, Parintins, Terra Santa and Oriximiná. As an adequate space for personnel enrollment lacked, this task was carried out in the canteen, later changed into a supermarket. As the Project construction progressed, both MRN and CONSAG had temporary offices available at the job site. A number of intensive training courses were developed at the job site, and this practice continued throughout the operation stage. Many of them were provided by SENAI – Serviço Nacional da Indústria, such as Mechanic, Carpenter, Outfitter, Mason and Topographer; the IPT – Instituto de Pesquisas Tecnológicas, from São Paulo, also provided practical Concrete Technology courses to Foremen. Also an Executive Formation Seminar based on the Peter Drucker management method was promoted.
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In the early stage of operations, three MRN’s operators were sent out for a three-month specific training period covering draglines and heavy mining equipment operation at Suriname mines owned by Billiton, a Shareholder of MRN. Through such training courses, the employees recruited on the region, formerly lacking experience as industry laborers, became increasingly qualified. It was amazing how easily they learned and got fitted to new jobs. At the construction peak, CONSAG’s maximum labor force in Trombetas reached 6 thousand men, out of which 70 with university degree, 29 engineers among them.
SUPPLIES: A LOGISTICS ISSUE
As per Mr. Eurico Pappalardo,
Technical Director and main executive officer in charge of the technical area during the project implementation, the Trombetas Project offered no specific difficulties. Indeed, it was nothing more than a number of medium size projects involving different interconnected and synchronized technologies - mining operations, railroad, power production and distribution, underwater foundations, navigation, dredging - simultaneously tackled, and on top of all these, the environmental issues. Therefore, logistics were essential – the required materials, equipment and labor should be available at the job site on the exact moment they were required. Accurately detailed planning was then required. Lacking a single common item, such as diesel oil to feed the machineries, could mean halting the whole job. In fact this occurred once when screws were received but not the respective nuts; this was sufficient to drive a certain stage of erection into jeopardy, and consequently jeopardizing the schedule. During the construction stage, “logistics” was the most widely heard word. All steps to acquire any type of material had to be taken well in advance and this could mean up to six months. A great deal of materials came – and still come
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- from Rio de Janeiro and São Paulo, by road until Belém and thence by barge to Porto Trombetas, and this could take up to one month. Barges pushed by tugboats carried all types of materials, from heavy equipment to foodstuff. Simpler items came from Santarém - a 20 hours trip by boat – as well as from Oriximiná, sited closer. River transportation from Belém to Porto Trombetas required – and still requires – one week – and four days from Manaus. Coast navigation was also used in some cases – for crushed stone transportation, for instance. No large volumes of crushed stone required for the structural concrete were available on the region. They were transported from Rio de Janeiro by up to 17 thousand ton cargo vessels. When no structural concrete was required for a certain job, washed and ground laterite was used. Laterite was also used as railway ballast, to surface the airport and the whole industrial area. Sandstone was another resource, however some difficulties were experienced, for the Trombetas River varies up to eight meters in depth over the year. For this reason, large volumes had to be stored since it was impossible to gather sandstone during the high tide. MRN also entered into a transportation contract with Mansur, a navigation company that once a month on average had a ship bringing food supplies from the South of the Country to Trombetas. Docenave ships – a CVRD affiliate – were also utilized for this. A provisory cargo wharf to the east of the industrial area was used to unload general cargo. As no adequate port installations were available, lacking proper hoists and winches, heavy equipment loading and unloading such as generators and locomotives very often caused serious problems. The national load was transshipped in Belém; international cargoes, as well as equipment partially erected on the river-bank, were unloaded In Porto Trombetas with the support of the cargo vessel’s own derricks. Supply of railroad wooden crossties was one of the major difficulties faced with. The region is timber-rich, however, the Amazon forest is greatly heterogeneous and agglutination of a great good number of adequate trees for crossties’ fabrication
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was not available. Additionally, on top of all this, the region was not known as wooden crossties’ manufacturers-rich or were the local suppliers interested in fabricating them. A great number of trees would have to be sacrificed for this job since only their heartwood was adequate. 100 thousand wooden crossties would be required and only 12 thousands were regionally supplied. The remainder was ordered from CVRD in Vitória (ES) where the whole supply was readily available for they kept an emergency stock to meet eventual needs. The regional wood used was, among others, “maçaranduba”, acapu”, “angelim-pedra”, “angelim-da-mata” and “sucupira”, that required no special treatment.
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CONSTRUCTION STATISTICS
According to the records available from the Trombetas Project construction period the following were the erection figures: operation 5,344 tons related to the main equipment and industrial installations; 44,600 meter process pipelines and interlink systems; 1,751 tons of steel structures for the various industrial installations and 2,300 meter 66”, 60”, 54” and 42” wide belt conveyors.
Approximately 406,000 m3 were excavated for the concrete works. 4,316 tons framework were executed on the port and mine areas and 300 tons on the townsite. 60,000 m3 of concrete were laid on the port and mine areas. CONSAG installed on the industrial area: a sawmill, carpentry, joining and fitting shop, framework installation, concrete mixer system and framework installation. 2,087,000 pre-molded concrete blocks were fabricated in lieu of bricks; 23,400 m3 of timber were sawed and 13,338 m3 of such timber beneficiated in the carpentry. Also a large part of the furniture used on the job site was locally manufactured; 110,000 m2 of formwork were fabricated; 59,890 m3 of concrete and 4,616 tons of steel plates were cut, folded and used. A machine shop was also installed for maintenance of the construction equipment, besides an electrical and mechanical equipment maintenance supporting system. The industrial area permanent equipment nationalization index was 65%.
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BUILDING A COMPANY
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The Saracá plateau is 12.5 kilometers long and 3.0 kilometers wide. Considering the initial production earlier designed of 3.350 thousand tons yearly, the Saracá ore deposit alone would be sufficient to keep production running approximately twenty years. The whole ore deposits considered, the projections indicated that they would suffice for one and half century production. The implementation of the whole industrial system then concentrated initially on the Saracá. The mining activities comprised deforestation, stripping – removal of the organic soil surface – bauxite mining and transportation to the crusher. Thence the bauxite was carried to the industrial area for beneficiation – washing and drying – and next to the port area to be loaded into bulk vessels. Each of such activities required specific construction and operation techniques.
DEFORESTATION
As this is an open-sky type mining, fell of bush
trees and removal of the thin humus layer that covers the soil are required; the soil is barren as is practically all over the Amazon region. Many specialists have even discussed the risk of desertification of devastated areas exactly because of this characteristic. The magnificent forest is practically self-sustained from the bush and small animals decomposition that form the organic soil averaging onemeter in thickness only. Since the beginning of the project implementation, strict care and attention was devoted to forest handling so as to avoid irreversible damages to the environment. For this reason, MRN’s Shareholders never lost sight of the nature preservation issues. An ecologist was hired to inventory the existing species and carry out studies on the mined-out areas rehabilitation alternatives. Mr. Oliver Henry Knowles, an Englishman already settled in Brazil, moved to Porto Trombetas and initially carried out a wide survey of the local species. He recorded an average of 120 trees of various species per hectare, with over 25 centimeters’ diameter. Only on the Saracá Plateau, the overall concentration reached 180 m3 per hectare, out of which 32 m3 per hectare were usable.
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Then Mr. Knowles started orienting de-bushing and later on, the incipient reforestation attempts. In order to avoid the risk of having specimens extinguished, he adopted the practice of systematically gathering and selecting seeds. It should be mentioned that on 19 March 1991, the Queen of England decorated Mr. Knowles in acknowledgement for his vision and actions toward environment preservation. After seeds identification and gathering on the mine area, de-bushing was selectively carried out through an emergency trail open by tractor to the site where the commercial-grade wood trees were to be fallen. However, the permanent bush remained untouched until the moment of total de-bushing to open the ore deposit. The wood was not commercially explored; it was rather locally used to produce concrete forms, door and window frames, furniture and other utilities. The poorer wood with no industrial application was donated to the CaranĂŁ population, sited in the vicinities of Porto Trombetas. On that occasion, only the useless wood was burnt due to lack of storage space or high transportation cost; neither storage nor transportation were compensatory. As per the resident ecologist, the SaracĂĄ mine de-bushing was estimated to cover 65 to 100 hectares per year. The overburden removed in the first year of operation would be discharged onto the plateau escarpment edge. Subsequently, the yearly 25 to 40 meter wide removed soil strip would be poured into a trench left from the mining activities carried out in the previous year, which was then leveled and compacted. As the bauxite layer is horizontal, there would not be soil depressions; apart from some level lowering the mine surface after the mining activities were over would not be greatly modified. However, the physical modifications to the new soil would be considerable. Possibly, the organic soil would be set aside prior to the overburden removal for later return to the surface after the mining activities were over.
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STRIPPING
Angelina Martins Sampaio, mining technician, was the only woman
who ever operated the mine in Trombetas and the first woman in Brazil to work on blasting and drilling. She supervised this sector and initially had a seven-men crew under her for an initial 50 thousand tons of crude-bauxite removal monthly. After removal of the overburden, a 3 x 2 meter grid was drawn on the bauxite layer and then 1.10 meter deep holes were drilled by the 3 1⁄2” mobile drill. An average of 100 to 120 holes were daily drilled. Diesel oil, ammonium nitrate – the ANFO – with 5.6% to 6% oil weight as compared to the nitrate was used in the blasting operation. The ANFO required a strong initiator that was the most sensitive and strong blasting – the Thorex. A traditional explosives detonation process was adopted: a slow burn fuse with a cord and simple detonator. Stripping was preferably carried out during the dry season from July to December – the Northern Summertime. Close to the mine, but on a farther area, a 40 ton dynamite stock, fuses and accessories were stored. Each powder storage building was constructed under special conditions, with double walls to permit permanent ventilation in between them, and this was possible by air entry through various openings. The air circulated between the double walls in such a way that the temperature was permanently fresher inside the powder deposit and the moisture rate dropped. A chimney let the circulating air outflow since the trend of the warm air is to ascend. This type of construction not only meets the Amazon specific weather conditions but is also commendable for any explosive storage building. The walls were very resistant and the roof constructed to fly away in eventual explosions: should a disaster occur, it would fly upward rather than sideward, thus avoiding hitting the remaining explosive storage buildings. Between each deposit, as well as on the rear area, an earth barrier was constructed to restrict eventual damages to the deposit blowing up in case a sinister occurred. The buildings were also half-buried, and this reduced any eventual accidents’ propagation.
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CRUSHING
The use of explosives caused the bauxite layer to become
sufficiently loose to be removed by draglines. They ran over the quite firm bauxite layer. Should this machine be placed on a clayey layer, it would slide thus turning its movement difficult. Mining was – and still is - carried out by draglines. The material was then carried by seven 35-ton 769 Caterpillar off-road-trucks. Currently, 85 to 100 ton 777 Caterpillar trucks do this job. The crushing installation was sited on a middle-point adjoining the Saracå Plateau equipped with a semaphore-controlled panel to guide the trucks. The ore was discharged into a 105 m3 hopper that carried it to 1,190 ton hourly capacity, 30 HP elliptical bar classifier feeders. This equipment separated the minus 8 centimeter grain and fed a hammer-mill-type crusher with 476 ton hourly capacity and 700 HP, that was part of the installation, in order to reduce the bigger grain size to eight centimeters. The lower size grain was carried to a 1,190 ton/hour, 50 HP belt conveyor. The crushed ore dropped from the crusher to the same belt conveyor. The whole material was reclaimed through a reinforced concrete tunnel to the downhill conveyor that carried it to the load station. A 520 meters long, 1,190 ton hourly capacity belt conveyor is used. In order to carry the bauxite from the crusher sited on the 200 meter high Saracå Plateau to the loading station, located on the 102 meter high mine railroad yard, along a 650 meter horizontal and 100 meter vertical distance, an equipment with special characteristics was designed: this equipment simultaneously transports ore and generates power to feed this system. The downhill conveyor is driven by an electric motor until the weight of the ore carried downward is sufficient to drive the motor. As from this moment, the motor stops driving the belt conveyor and the ore on its downward way commences generating power. This downhill conveyor and the other belt conveyors available in Trombetas were fabricated in Brazil.
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ROAD AND RAILWAY
From the loading station, sited on the bottom of
the Saracá plateau, a 26.04 kilometers long, metric gauge, single-track railroad with gondola railcars carries the bauxite from the mine to the car dumper on the port industrial area. A seven-meter wide roadway adequate for light vehicles was constructed parallel to the railroad. Both were ballasted with ferruginous laterite; on the road the laterite was compacted. 50 thousand m3 of laterite were especially prepared in the 100 tons capacity crushing and washing installations. The railroad required 75 thousand tons of wooden ties, 3,000 tons of TR-57 rails and 1,300 tons of metallic fastening accessories. Envisioning a second stage of the Saracá exploration, estimated at 8,500 thousand-tons/year ore production, and bearing the return trip in mind, a composition-crossing yard was designed and this would greatly increase the utilization frequency. Then a 1,120 meters useful by-pass and a 150 meters maneuvering boom were designed. During the earthmoving services, the deepest cut ever made on the Amazon region was carried out on kilometer 14 of the road and railroad. It was a long cut, around 28 meters high, in bench-form in order to preserve the slopes and protect them against the rain action. In order to avoid slopes’ erosion, exhaustive studies were carried out concerning the most adequate vegetation type to be planted there. One amongst various studied species showed quite satisfactory results: the brachiaria decubens, a type of grass known as “kikuya”, native in the State of Pará of which transplants have already been taken to various places around the world. This grass grows and scatters on the ground at an amazing velocity, and at each 10 centimeters, a nodule grows and roots weave nicely so as to definitively protect the soil against erosion. Its planting is ease and no maintenance required but it is recommended to fertilize the land with superphosphate within a few years after planting. Another additional advantage is that this specie growth does not exceed 50 centimeters. Other trials were made on kilometers 13 and 14. After the equipment blades do
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the cuts, the slopes become very smooth, and the soil exposed. The very even and smooth surface did not retain even the vegetal soil that was spread prior to having the grass planted. An experience already tried in South Africa was then tried in Porto Trombetas: a thick wall was constructed with old scrapped tires. The tires retained the rainwater and fed the vegetation, thus helping to retain the vegetal soil. By and by, the vegetation penetrated the smooth slope. The tires were orderly placed in pyramid-form, each one fastened with stakes. The vegetal soil was spread on the tires and in between their spaces; filling up all voids was not required. The grass transplants were then planted at 20 centimeters interval. Still better results were obtained from another new experience: cut the brachiara decubens into very tiny bits and mix them to the vegetal soil and just throw the resulting lot on the tires or put it inside sacks. Roots sprouting from each tiny bit got rooted and grew, thus sparing time and labor. Other experience that worked out was to set 10 centimeters thick sticks each 50 cm, in parallel lines and step-form. The vegetal soil was then thrown on them, depositing closer to the sticks and the grass was planted on them or, alternatively, the earth mixed to the ground grass was just cast away. A further test was carried out, this time with perforated vegetal soil bags with grass previously planted inside them. While the grass grew, the bag protected the soil against rains, and by and by, the roots penetrated the slope. However, this required biodegradable bag types, lasting at least six months. The best results came out from the tires and sticks experiments. Besides seeking solutions to the slopes erosion problem, earthmoving during the period of heavy rainfalls in the “winter�, from December to May was another major difficulty faced with. Even so, the work went on; over that period, big cuts were done, leaving earth fill to be carried out in the summer time. Excavation on the mine, road and railroad, port and residential areas amounted to approximately 9,960 m3 of earth. Normally, the cuts were done above the phreatic sheet. During the road and railroad construction, major difficulties were faced with only on km 21, when the phreatic sheet level was reached. The adop-
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ted solution was to carry out deep drainage services along that cut, some 800 meter long, practically handwork. 8” diameter porous concrete pipes wrapped with a material of pre-selected grain size material, protected by a foliage seal collected on site were used for such drainage rather than the conventional “mantade-bidim”. The surface water could then be drained and the services went on normally. This system continued to work out to drain the road and railroad beds after completion o f the earthmoving services. Later on, improvements to the road and railroad were made; the railway laterite ballast was replaced by crushed stone ballast and the wooden crossties by concrete crossties. The road laterite bed was replaced by asphalt paving. All this resulted in the increase of bauxite railroad transportation capacity with substantial maintenance cost reduction, not only of the railroad bed but also of light vehicles and trucks driven along the roadway.
ORE LOADING AND UNLOADING
Two bauxite railcar-loading
alternative designs were envisioned. The main one, through a hopper fed by a 48” belt conveyor and the second, through the ore stockpile, by a 6.5 CY (cubic yards) on-tire mobile loader, capable to move along ten meters rails positioned above the railcars. This system is provided of two ore outlets that permit to load a composition moving slowly without pouring ore in between the railcars. The stockpile base is located above the railroad platform elevation. This loading operation is carried out on the railroad mine yard. Once loaded, the railcars are driven to the railroad terminal at the port, where the bauxite is unloaded into a 2,770 tons/hour, 157 HP car dumper. This equipment overturns the railcars that discharge the ore on to a silo equipped with a 2,376 ton per hour and 125 HP feeder. Prior to being overturned, the railcar is correctly positioned by a railcar positioner and held by claws lowered until reaching its upper rims, swinging around its axle in order to discharge the material. This operation is carried out without uncou-
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pling the railcar from the composition. After discharged, the railcar returns to its normal position and a gadget pushes the composition until the next railcar is placed on the discharge point for a new operation. The discharged material goes to a belt conveyor through a 315 m3 hopper and is then carried to a surge pile.
WASHING AND TAILINGS BENEFICIATION
At first, from the
surge pile, the ore was carried to a belt conveyor. The crude ore was classified by size by a 1/4” drum scrubber screen and water jets. Plus 1/4” size material passing these sieves was transported to a surge pile feeding the drying plant whilst minus 1/4” grainy material was screened by 14 mesh vibrating screens (mesh by square inch) whence the minus 14 mesh to minus 1 / 4” material was reclaimed. Cyclones and filters at the tailings treatment plant still located on the port area also reclaimed the minus 14 to plus 150 mesh bauxite fines. For each 400-ton end-product, 30-ton fines were recovered. Formerly, the Trombetas water was used to wash the ore and the settled mud pumped through some four kilometers pipeline into the Batata Lake, to the east of the townsite. As from 1984, after a set of 4”cyclones and vertical filters were installed, also the finer fractions between 150 and 400 mesh were also recovered. Such fractions were known as “superfines”. As from 1989, after successive production expansions, the crushing and washing systems went through a number of modifications in order to meeting the ore demand over the years. The Crushing and Washing plants currently in operation have a new shape and are capable to beneficiate ore to produce 11.0 million tons per year of bauxite. The basic concept of the production process is the same of the previous plants, however, some equipment items were re-dimensioned and others replaced.
QUALITY CONTROL LABORATORY
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supply of a uniform product and also to carry out trials requires a number of tests. Formerly, this was carried out at the provisory Quality Control Laboratory in Porto Trombetas. Simultaneously with the quality control, grain size control was also carried out in order to learn the fragments’ sizes so as to avoid overburdening some production units. During the construction period, this sector performed an important role in the road and railroad compacting services as well as in the control of the concrete quality, in that special tests were required. Later on, this laboratory was transferred to its definitive installations – a simple but suitable brickwork building, with an area of some 380 m2, walled with concrete blocks and roofed with external heat reflecting aluminium tiles. Air conditioning was installed in some rooms whereas others were designed to be refreshed by stressed ventilation. The Laboratory comprises an area for samples preparation and another to carry out the analysis, equipped with a scale and a muffles’ room. Available and total alumina, reactive silica, iron oxide and moisture content, oil, geological survey and a number of other tests are carried out there. The ore quality control and a number of other pertinent tests are required to ensure supply of a uniform product to MRN’s clients.
BAUXITE DRYING AND STORAGE
Some clients, mainly those
operating abroad, in cold climate countries, require their bauxite moisture content not higher than 5%, otherwise, besides impairing unloading operations, the ore can get frozen prior to reaching its destination. Moreover, transportation of dump ore is more expensive for a part of the cargo weight is only water, hence the need to dry the ore, an expensive operation due to its high heavy oil consumption. Two 400 HP rotary dryers, each one capable to dry 364 tons of bauxite per hour, reduce the natural moisture ranging from 12% to 15% to 4% to 5%. Such dryers operate at a temperature of 1,200oC, but up to 1,316oC may be reached. The
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material remains 15 minutes inside the dryer. Heavy oil consumed in this operation was estimated at some 5.5 cubic meters/ hour. It is preheated and pumped into the dryer combustion chamber. The heavy oil is supplied to MRN by Petrobrás which is in charge of transportation from its Manaus refinery by its own barges and tugboats to Trombetas, where a special fuel terminal is available, and all vehicles and equipment of the Trombetas Industrial Complex –generating sets, ore dryers and boilers - are supplied from them. Among other equipment, a 4,030 m3 heavy oil reservoir, a 1,100 m3 diesel oil tank and various other equipment items were installed there. From the dryers, the ore is conveyed by belt conveyors to a 177 meters long and 50 meters wide covered bauxite storage building known as “Bauxitão”, which storage capacity is 170 thousand tons of dry bauxite. The stockpile may achieve up to 24 meters high, measured from the reclaiming tunnels’ roof. Two reclaiming tunnels are sited seven meters below ground level. Up to 80 thousand tons of bauxite can be reclaimed by gravity by ten stockpile dischargers with 750 tons per hour capacity and 15 HP each, by means of 18 vibrating feeders with 750 tons per hour capacity and 10 HP each, and thence carried to the port installations by belt conveyor. Additional equipment is used for discharging higher ore volumes.
SHIPLOADER
Six thousand tons-per-hour capacity and 300 HP belt
conveyors feed the linear-type shiploader with 6 thousand tons per hour and 45,000 tons per day nominal capacity, constructed on the Trombetas River bank. Loading of a 50 thousand-ton ship requires 26 hours of continuous operation. The shiploader is equipped with a contractible slewing boom moving horizontally and vertically so as to reach the mouth of all vessels’ hold both on low and high tides. The shiploader foundations and its difficult erection required modern technologies;
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concrete blocks supported by steel tubular piles were used and due to the soil characteristics, they were fixed on the rock. 5,100 meters of 16” and 22” diameter tubular steel piles were required. Those piles subject to traction were anchored on the rock drilled with rotary drills, walled with supporting ties for underwater concreting. The shiploader detailed engineering was executed by IESA and CONSAG that subcontracted Brasília Guaíba Obras Públicas S.A., responsible for its construction. Italimpianti, Italy, supplied 60% of the whole shiploader linear-type set and the remaining equipment was manufactured in Brazil. It was designed to load up to 65 thousand ton ships, at a speed that may vary from six to eight thousand tons per hour, pending on the specific weight of the material, which may range from 1.22 to 1.44 ton/m3. The general cargo wharf downstream from the shiploader remained in operation to load and unload other products and goods and the shiploader pier was constructed some 120 meter away from the Trombetas River bank in order to get 12.2 meter draft along the riverside, which is the average draft during the dry season. A 500-meter wide river stretch, right above the port, forms a natural basin for ships’ maneuvering. The port installations were constructed in such a way as to ensure safe berthing and loading. The ships may sail some 1,100 kilometers along the Amazon River basin requiring no river-locks – unprecedented free river navigation. Night navigation aids were also installed along the stretch from the Trombetas to the Amazon River mouth.
HEADQUARTERS
Utilization of the new head-office commenced in
1987; the area of the lower floor is 2,403 m2 and the upper floor 1,205 m2, or a total of 3,608 m2 built area. For adequate operation, removable walls divide its rooms to meet the needs of the Executive Committee, Administrative and Opera-
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ting Managements, as well as meetings and administrative support. Provided of modern installations, inclusive of air conditioning mechanic exhaustion and fire alarm, the building was designed and constructed to provide comfort and a magnificent view from theTrombetas River through its ample transparent plain glass walls and a large balcony wherefrom it is possible to have a view from the shiploader and ships sailing.
THE OPERATIONS COMMENCE
Equipment erection was nearly
concluded in 1979, when the trial runs commenced that required 90 days. The exactness of each item had to be thoroughly checked. As the test period was over, no regrets to report: all production units were functioning to perfection. Slightly over three years elapsed since March 1976 when the project implementation was approved, on which occasion the well-known green light was lit, until the first bauxite shipment. On 13 August 1979, the Cape Race Vessel loaded with the first bauxite cargo left Porto Trombetas. Alcan Canada was the final destination of those 21,054 tons of ore. After such a strenuous work, so many persons involved – at the construction peak in 1978, over six thousand people were engaged on the Trombetas Project construction - it is rather difficult to evaluate the emotion that seized everyone seeing the Cape Race approaching, being loaded and departing with its holds plenty of Amazon bauxite. For the time being, a mission has been fulfilled. Other missions will come, many other ships to load.
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On the early days of operations, the following were the members of the Executive Committee: Director President
Miguel Rodrigues Nunes
Commercial Director
Waldyr Juruena Pereira
Operations Director
Fúlvio Vieira Fonseca
Administration Director
Osmar Franco Jannotti
Director of Finances and Control
Ozair P. de Siqueira
The Superintendences were formed as follows: General Superintendent
Maurício José Schettino
Production Superintendent
Rodrigo Werneck
Superintendent of Maintenance
Alix A.O.Hernalsteens
Superintendent of Operations Support
Aluízio Guimarães Ferreira
The Production Area comprised various sectors as follows:
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Mine Area
Joseph Bakker
Crushing and Washing Areas
José Carlos Soares
Tailings, Drying, Storage and Shiploading
Galib Abrahão Chaini
Railroad
Paulo Alexandrino de Azevedo
Mechanical Maintenance
Edward Wallace
Civil Engineer
Arnaldo da Costa Alves Filho
Mobile Equipment
Hélio Magalhães Freitas
Industrial Area
Marton Menezes Lira
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TRADE MARK
Around end-1976, an internal contest was carried out to select Mineração Rio do Norte S/A’s trade-mark. The following model was submitted to the approval by the Board:
This suggestion was discussed and Alcan’s representative at the Board was of the opinion that the suggested trade mark required some sort of frame and protection, and as a consequence, the idea being that this frame could be represented by the Trombetas River bed and the protection by a bauxite plateau drawing. The following was the final graph art of MRN’s trade mark:
On 25 July 1979, the approved trade mark was registered with the Instituto Nacional de Propriedade Industrial – INPI, under number 1271/0695.709.
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In 2003, MRN’s logo was updated.
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BUILDING UP A TOWN
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Simultaneously with the industrial complex implementation on a space open in the jungle, a town was also constructed. Besides the townsite and other relevant aspects of the Trombetas Project planning, such as nutrition, health and education, MRN was concerned about social stability. Special care was devoted to the installation of leisure options and other ways to keep the work teams motivated. Actually, mainly the engineers who came from large urban centers, had their lives turned upside down: cars were replaced by boats, loss of cultural leisure, such as cinemas, theaters and shows, were replaced by family meetings, and later on, by social gatherings at the club. Likewise, television was replaced by book-readings, shop windows by the delightful investigation of the magnificent fauna and flora. All urban habits had to be modified to adapt to few leisure options then available in the jungle. Construction of the urban center progressed simultaneously with the industrial installations, so as to permit the gradual settlement of MRN’s employees and their families that, by and by, got fitted to the quite diverse life from that they had in the big cities. Factually, as the townsite physically emerged, the Porto Trombetas community got familiar to the new social life conditions, and at the same time, created a new fellowship style. Under this context, the role played by the wives of the pioneer engineers, technicians and administrative employees deserves praise: their special contribution to improve the environment and life quality in Porto Trombetas, activating the social life in the new community was wise and decisive in terms of results. They organized social meetings, game-plays and parties, entertainments and excursions, promoted courses and social assistance on a broad sense. In short, they painted that remote and monotonous township with a different color and, by-and-by, with the construction of the various urban facilities, it grew to resemble a modern city.
LODGING AND REFECTORY
The earlier lodgings in Porto Trombetas
consisted of twenty-four pavilions constructed in PVC and wood, as practically all other Andrade Gutierrez temporary buildings of the construction period. Such
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buildings were constructed close to the industrial area in sufficient number to house over six thousand employees. Bachelors and employees that did not bring their families were housed there. Later on, some lodgings were built close to the Guesthouse, and their dwellers had their refections there. Others, closer to the job site, had three refectories and a kitchen with one-thousand-m 2 -area and some ten thousand persons were accommodated there. Food supplies to nourish so many employees required changes in nutritional habits. Fish was their basic food, however, very often it was not possible to buy the required quantity: very frequently 25 thousand refections were served in a single day. Beef was then included in the menus. Meat was supplied from SantarĂŠm and frequently up to 44 animals were daily slaughtered.
TOWNSITE
In the early construction stage, houses were a scarce item
and very often became a source of dispute. Later on, after 200 Madezatti prefabricated wooden houses were erected on previously constructed foundations, the situation improved. 59 thousand square meter areas were prepared for house construction, besides the brickwork houses underway, however, when construction was concluded and operations started, many construction workers were dismissed, and consequently, the demand for houses dropped. The nice townsite is sited east to the industrial area. During the construction period, six types of houses were available: 11 B-type houses with 278 square meters for senior engineers; 196 C-type houses, with 197 square meters for junior engineers and university-graduated personnel or equivalent; 80 D-1 type houses with 82 square meters and 120 D-2 type houses with 70 square meters for technicians and skilled laborers; 200 D-3 type houses with 56 square meters for unskilled laborers; on top of all this, the Madezzati pre-fabricated houses. All such houses were and still are made available to those interested along MRN’s pre-established allocation criterion, and merely symbolic rentals are charged.
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Paving of the whole townsite streets was concluded in 1983, and this was a significant contribution to reduce suspended particulates - the dust resulting from clayey material and bauxite fines. The main streets are seven meters wide with wide sidewalks on both hands, varying from 50 centimeters to 1.50 meter wide, besides the five-meter wide lanes.
GUESTHOUSE
Visitors and eventual service-rendering people were
housed in the nice and pleasant Guesthouse inaugurated in 1978. It comprises two blocks with ten apartments each, one block to house the refectory and a common entertainment area with ample seating rooms. This entertainment area occupies approximately 2,900 m2 over-viewing the Trombetas River. The original project designed by Bonfill & Mazzei, urbanized by Leonard Régis Moreira, contemplated construction of a sport field, swimming pool and further 40 apartments but this never materialized. CARANÃ VILLAGE - Naturally, MRN’s undertaking attracted good many persons not directly involved in the implementation works and this drove the Company to design a satellite town named “Vila Caranã”. The company assigned a number of areas to such population - most of them living in the area known as “Beiradão” - and construction of a septic tank and fencing the area were their only counterpart; MRN also provided some assistance to them when constructing their houses. The wood not usable in the Project construction was donated to them for construction of temporary houses, conditioned to their later replacement by brickwork houses. So outcropped the Caranã Village, with a Sport Club – “Mineração Sport Club” – then regularly attended to. The Village also had basic sanitation. Supply of potable water and power was also under consideration by MRN. The Caranã Village population enjoyed the benefits of all Porto Trombetas available infrastructure, mainly the hospital and school. This satellite village was shut down a few years after the plant was commissioned.
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CIVIC AND COMMERCIAL CENTER AND SUPPLIES
The Civic
and Commercial Center was constructed to accommodate the supermarket, bakery, four shops, drugstore and the future club. A BASA (Banco da Amazônia S/A) branch – later replaced by Banco do Brasil – was also built by MRN. Approximately 2,400 current accounts were open, and through this branch all salaries were paid. Basic food supplies were purchased in Santarém, Oriximiná, Belém, Rio de Janeiro and São Paulo. Rice, bean and dairy products came from the farther south states. A supermarket functioning in a temporary building stored a twomonths’ minimum stock of supplies, which included cloths and fabrics. Apart from 10% on top of the purchasing price to cover transportation costs from Belém to Trombetas, the sales prices were the same practiced in Rio de Janeiro. MRN administered the Caranã Farm where five thousand chickens were raised, however, the total capacity was 30 thousand. Pork-raise was in the early stage with 60 matrixes. Chicken-slaughter installations capable to slaughter two thousand units/day were also available. Soon milk cows would also be raised there. In short, the Caranã Farm could supply four basic nourishing items to the population: milk, pork, chicken and eggs. 150 mango-trees and about one thousand caju-trees were planted in the Caranã Farm; caju-trees were also planted alongside the railroad. Cattle was supplied mainly from Santarém and slaughtered in MRN’s own slaughtering facilities. The Trombetas and Amazon Rivers are plenty of fishes, a source of supply that was right at hand. The Akebono farm, owned by MRN, produced mainly fruits and vegetables. Three thousand orange-trees were planted there. Foodstuff was provided to the population, guesthouse restaurant and other two big restaurants located in the industrial area.
HOSPITAL AND MEDICAL CARE
In January 1977, a well-equipped
hospital was installed in a 1,500 m PVC and wooden temporary building, to 2
attend the construction employees, Porto Trombetas’ and nearby population. It
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comprised 28 beds, various ambulatories, nursery, first aid, parturition room, surgical center, X-Ray, a complete laboratory, sterilizing unit, blood donation bank, teeth-care, drugstore and morgue. Preventative treatment of endemic diseases, with intensive vaccination, were performed there, let alone electrocardiogram and electroencephalogram. The hospital was named after the Oriximiná County’s patron saint - Hospital Santo Antônio do Uruá-Tapera. Until mid-1979, CONSAG was in charge of the hospital management; thenceforth, such was another charge conveyed to MRN. Six physicians, 4 university-graduated nurses, 12 assistant nurses, three nursery technicians, an X-Ray operator, three laboratory technicians, a biochemist and three dentists worked in the Hospital. It operated in agreement with INAMPS – currently INSS. As no drugstores were available on the region, drugs were supplied by MRN, physicians’ prescriptions being required. A part of the drugs stored were supplied by CEME – Central de Medicamentos – a Health Ministry body. This hospital, where cleanliness and order were the general rule, had modern equipment, such as piped oxygen, spare generator and 33 thousand liter capacity spare water reservoir. Operation of the 2,812.86 m2 definitive hospital commenced in 1986: it comprises, among other facilities, 33 beds, one-bed Intensive Care Unit, Nursery, Surgical Center, Ambulatory with eight-rooms, one room to attend nose, ear, throat and eye diseases, two dentistry installations, laboratory, various rooms for specific tests, such as ultrasonic tests and first–aid unit. This hospital also provides preventative care and assistance to the townsite inhabitants and the enrolled riverside population as well. Also under its social role and in emergency situations MRN extends such assistance also to the riverside population not enrolled.
PROF. JONATHAS PONTES ATHIAS SCHOOL
In 1977, Andrade
Gutierrez transferred the Vera Andrade School from Cachoeira Porteira to Porto Trombetas’ new school building, to attend the needs of CONSAG’s and MRN’s
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employees’ kids. In 1979, just alike the hospital, MRN took charge of the school administration. Paying homage to a reputable teacher born in Oriximiná, member of the National Education Council and former Education Secretary of the State of Pará, Prof. Jonathas Pontes Athias, the school was named after him. It had 1,200 pupils and the teaching and administrative structure comprised 30 employees: 14 university-level, three technical-level and 13 assistants. Until 1982, MRN was able to carry out a good-quality work, however it felt wiser to convey this charge to education experts. Then such task was assigned to “Sistema Pitágoras de Ensino”, sited in Belo Horizonte (MG). The Pitágoras System was committed with education-quality, life-belief, and man-ability to understand life reality and act upon it to the extent of becoming a better person, thus improving life quality of the whole society. MRN was responsible for all charges, including administrative and pedagogical materials, besides maintenance costs. Under Pitágora were the responsibilities for personnel hiring, teaching methodology, pedagogical project and personnel training. Yearly, up to 1,800 students splitted into three shifts attended that school. In 1997, the Pitágoras school management responsibility was assigned to the Vale do Trombetas Foundation. The school building constructed area is 6,779.19 m2 and comprises 36 classrooms, two information technology rooms, a library, two laboratories, two craft and art rooms, two huts, an audio-visual room, a room for the Grêmio (Recreational Guild), an amphitheater to accommodate 150 persons, 24 bathrooms, two canteens, three covered yards, 11 rooms for technical and administrative personnel and a teachers’ room. MRN’s vision is to have each of its students well prepared to occupy, in due time, his space in society as an active, motivating and transformation-participating individual, and towards this end, the school promotes special activities such as the “Bienal Cultural” (cultural biennial), o “Dia do Livro Infantil” (Children’s
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Book Day), “Feira de Ciências” (Science Fair), “Semana do Meio Ambiente” (Environment Week) and many other activities. Theater presentations are also promoted, books written by the students printed. Cultural activities are offered to their parents as well, such as “Curso Livre de Filosofia para Pais” (Free Philosophy Course for Parents) and the “Projeto Arte na Biblioteca” (Library Art Project), besides seminars focusing various themes. Prof. Jonathas Pontes Athias School is also endeavoring to become a referential in education quality, keeping closely synchronized with the social, cultural and ever-changing world worthiness, contributing to improve the whole school community life quality preparing its students for life. It also endeavors to be a sensible and effective school, reaching such quality indexes compatible with the best Brazilian schools, to the extent of deserving quality awards for the services it has rendered.
COMMUNITY - SCHOOL LIBRARY
Biblioteca Escolar Comunitária
(BEC) – The purpose of the community-school library is to provide support to the pedagogical school activities, making adequate bibliographic and audiovisual materials available to students and teachers, in order to ensure readinghabit formation, besides playing the role of cultural information and leisure and entertainment center to the whole community. The students are very proud of their library. In 1998, its physical space was expanded to 163 square meters. It is sited right in the center of the school building and all book-lending facilities are available there, besides special rooms for children, youngsters and the community as a whole. Various other service types are available at the library, such as consultation and lending facilities, training to fruitfully use the library, research-oriented and monitored visits, oriented-research and access to the information network, including Internet. Acquisition of new books and photos related to the library activities or civic celebrations are also disclosed and exhibited, besides videoshows, lectures and reading sessions known as “A Hora do Conto” (Story-tell
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Time). On top of all this, it co-operates to disclose pre-selected information to the teachers and through the “Programa Ajudante da Biblioteca” (Assistant Librarian Program) and “Programa Bibliotecário por um Dia” (One-Day Librarian Program), promotes cultural entertainment programs for children and youngsters.
LEISURE IN TROMBETAS
A nice provisory club was constructed near
the townsite – Rio Norte Social Club (RISC), with swimming pools for adults, youngsters and children, a restaurant which floor was surfaced with cement and tree-trunk slices, straw-roofed, well decorated, where practically all social events in Porto Trombetas took place on those far-off days. It was destined for residentfamilies, irrespective of the rank of its 503 members. On 02 October 1974, the MEC – Mineração Esporte Clube, sited on the Caranã Village, was founded. It was later transferred to Porto Trombetas, where it occupied a 52,200 square meter built area, parking place and cinema not included. Various spaces were constructed there for leisure, sport-practicing, such as football field, athleticism field-way, multi-sportive fields, football sandedfield, squash and tennis space, sports gymnasium, water park comprising an olympic and two children’s swimming pools, gymnastics room, in addition to an ample two-stage social hall with dance space, main bar, music room, two saunas and a hut with dance area and bar. Additionally, MEC also promotes various social and cultural activities such as music and dance shops and sport courses, besides formation of significant groups like the Muiraquitã Chorus, Children’s Dance Group, Modern Dance Group, Body and Movement Dance Group, and the Folk Ballet. MEC also provides Physical Education (Gymnastics) to all Escola Professor Jonathas Pontes Athias’ students. Besides such leisure options, a Yacht Club and a provisory cinema were operated by MRN, the latter with daily sessions at 8:00 p.m. and children’s session on Sundays.
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In 1988, a 677.50 m2 constructed area building to house the permanent cinema was inaugurated; its installations are also adequate for theater presentations.
AIRPORT
The old airfield suitable for small and medium-size airplanes to
land and take off, available during the construction stage, was modernized. It is sited Northwest to the townsite and large-size airplanes – even 737-300 Boeing airplanes for passengers and 727 for cargoes – can land and take-off there. A well ventilated passenger’s terminal, with 475.20 m2 constructed area was built of “acariquara”, a regional timber, with glassed divisions. Its 1,605 meters long and 30 meter wide, two-headed runway (landing points) is asphalt-paved. A curious aspect of this modern airport is its second-fold use as a leisure option. Creation of the “AFTA – Associação dos Frequentadores Trombetanos de Aeroporto” on 8 May 1989 (Trombetas Airport Frequenters Association) – “The World Airport Frequenters’ Day” in Porto Trombetas - evidences this curious feature. Its participants promote gatherings at the airport every Friday – then known as the São Paulo-born people nights – to watch airplanes’ land and takeoff. The statutes of this society had a picturesque wording: “AFTA is a para-social entity of doubtful public utility, with no self-profit purposes – only third parties’ – which major objective is to cultivate the foolish habit of watching airplanes taking off and landing”. Also in accordance with the provisions of such statutes, the members of this association are splitted into three categories: Contemplative, Participative and Honorable. The underlying intention was to promote leisure, relaxed chats and the Friday happy hour.
WATER AND SEWAGE TREATMENT SYSTEMS
Water supply to
Porto Trombetas was designed to come from the Trombetas River through a 1,200 m3/hour water intake sited upstream from the industrial complex, pumped by three Worthington pumps: one in operation and two standing by. The water
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runs through the intermediate Booster system and a part reaches the Water Treatment Plant and the other, the Boiler Houses and Power Station. The water is pumped into the main 1000 m3 reservoir by three KSB, 220 m3/hour capacity pumps, driven by 100 HP Weg motors. From the water reservoir, it is distributed to the townsite by 120 m3/hour/each Sulzer pumps. The Sewage Treatment Station (STS) went on stream in January 1993. The whole Porto Trombetas sewage is driven to a station at an average speed of 30 liters/ second, where it goes through activated-iodine treatment. The STS is equipped with three 234 m3/hour/each compacting capacity ascending pumps and three Omel blowers with 3.62 mm3 /minute air outflow capacity.
POWER
Power was supplied by four 3,200 kW/each diesel generators
– two imported from Mirlees/Brush and two purchased from Ishibrás/Toshiba, manufactured in Brazil, or 12,800 kW total installed capacity. A 4.16 kW, 13.8 kV secondary distribution system supplies power to the townsite and industrial installations. A 69 kV high-tension transmission line, approximately 33 km long, connects the powerhouse sited on the port area to the substation on the Saracá mine area. Power supply facilities went through various upgradings over the years to meet MRN’s successive production expansions’ requirements. The first took place in 1985, when a 2,500 kW GM-Electromotive generating set equipped with a two-time diesel motor burning exclusively pure diesel oil was installed. In 1986, an 8,500 kW power station, equipped with high-pressure (64 Bar) steam boiler manufactured by CBC-Brazil was installed to drive a Siemens/Dedini multi-stage turbine. This unit was designed to be driven by wooden-chips burn. The wooden chips were produced at the Chip Plant, specifically installed in 1985 to feed the ore dryer. However, this wooden-chip power generation model did not work out for its production cost was too high for too low an yield. Chip production was
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discontinued in 1989 and the heavy diesel oil-burn system resumed. After such two expansions, the Power Station total installed capacity reached 23,800 kW to meet bauxite production requirements already at the level of 5.5 million tons per year, as well as the superfines plant, the Beco-680 W electric dragline and the Liebher excavators. In 1989, further four 1,500 kW generating sets burning pure diesel oil manufactured by the French SEMT Pielstick were installed to meet the plant requirements, which production level went up to 6.5 million tons per year, and also to add reliability to the generating system. The power station installed capacity then went up to 29,800 kW. With the transfer of the washing plant to the mine area in 1989, the power station was again expanded with the addition of further two Mirlees Blackstone, England, 4.200 kW generating sets driven by mixed fuel oil. The installed capacity then went up to 38,200 kW to meet the approximately 8.5 millionton/year bauxite production. This installed capacity, with 12 generating units in operation, remained unchanged until 1997, when the Papagaio Mine was open and the Saracรก Crusher relocated. The yearly bauxite production installed capacity then exceeded 9.0 million tons per year and the increased power demand was met with the addition of another 5,200 kW SEMT Pielstick generating unit, France, also driven by mixed oil. Installation of the second 69 kV Transmission Line in 1997 to meet the needs of the Mine operations was another important modification. This addition contributed to reduce both, on-line transmission losses and operating costs, as well as to improve power quality. At present, the power station comprises 13 generating sets with a total rated capacity of 43,400 kW to meet 18 thousand kW average demand and 23,500 kW maximum demand to keep the plant running at the production level of up to 11 million tons per year, as per 1999 production statistics. Power supply was then reliable, however, generating costs were considered high
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and this justified new investments to replace both, the generating units burning pure diesel oil and a Thermal Power Station with low energy yield. In October 1999, two new 9,150 kW rated capacity generators were purchased from the German MAN B & W. They are heavy oil-burn driven, yielding 15% more than the existing generating sets. They were installed in a new Power Station and followed a new concept with the purpose to eliminating the high noise level hitting the operators’ ears. This new Power Station that went on stream in December 2000 is fully automated. Sun-power development is a reality in MRN, both in the townsite and guesthouse, where specific devices are installed to take advantage of this natural power source.
COMMUNICATIONS
During the construction stage, all voice-
communication among Porto Trombetas and remaining regions were done by radio. Later on, a telephone network with some 400 telephones scattered all over the industrial and residential areas was installed. Telepará installed a VHF repeating station on the Saracá Mountain connecting the port area station to Oriximiná, so getting connected to the Brazilian Communication Network. A hightension wave propagation communication system connecting the mine to the port was used. A mobile communication system connected the vehicles used by the supervision to the port and mine areas. On 5 March 1979, a VHF communication system connecting Porto Trombetas to the national and international network – with telephone and telex facilities operated by Telepará – was inaugurated. MRN supplied office, equipment and other facilities and financed the operation. Later on, MRN installed a TV system that operated with videocassettes recorded in Rio de Janeiro, normally Globo Television Network programs. A Brazilian Telegraph and Post-Office branch was installed in Porto Trombetas and the installations, also provided by MRN, are still under use.
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FIRE BRIGADE
MRN’s Fire Brigade has the purpose to meet the
requirements of the industrial installations at the Port and Mine, as well as the Townsite and Airport. It comprises a seating room for the firemen with 24-hours availability period, another room for minor equipment repairs, closed area to keep the emergency equipment, a freezing chamber to keep the diving equipment and a garage for the fire-trucks.
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THE TROMBETAS PROJECT CONSTRUCTION IS TOLD IN POEM-FORM In January 1978, Antonio Ribeiro, a CONSAG’s administration employee, wrote a poetry booklet he dedicated to MRN – “O Projeto Trombetas – Bauxita”. This booklet, written in “cordel”-form literature, reflects the whole MRN’s background story to this date. This poem he also dedicated to his MOBRAL colleagues is as follows:
Mineração Rio do Norte A big project decided to construct For bauxite to export On the Trombetas River bank To work it has commenced At some distance from the river A project is emerging How complicated their features are And how challenging to architects they appear All built-up to reach its targets Within a certain targeted period The ore is to be taken From the Saracá Mountain To the rich Municipality of Oriximiná More on the North side it is sited To the State of Pará it belongs Eighty kilometers from the Municipality Seat it is sited Wherefrom a thousand and a hundred It is distant and where it commences On the nicer river mouth Just alike Alípio had told
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POLAMAZÔNIA is only a name A National abbreviation Of an unique program the Federal Government implemented To developing the Amazon From north to south all over (...) On the flatted top plateau The Bauxite outcrops But to reach the mine A long way has to be walked Seventy to a hundred and twenty meters Is the way to be climbed (...) One-meter laterite layer And quite ferruginous it is It separates the five-meters layer Of the worthy bauxite That massive is considered And on its glorious source it lies
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Covetousness is arisen Whenever chemicals outcrops This we can affirm Of the three-hydrate type is The bauxite we will export Precipitation and filtering features The best bauxite-type it is Available alumina rate? Fifty percent it is, and What about the reactive silica? Four percent only A worthy ore it is, and Quite recoverable also (...) Away thirty kilometers From port to mountain Transportation to be made By railroad of course By road and railroad This distance is covered The yearly production is Three million tons and Expansion to eight Under consideration is already However ten million They already indicate Draglines will remove The mountain overburden Motor scrapers also Aid will provide and The Project will be concluded The calculations do not err The crushing station To the best position
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Located and positioned will be On the bottom, or on the ground Eight meters long is the size Of the transportation railcar The ore is loaded into Powerful railcars Seventy tons each they are And the best conditions To carry the ore they have So that the ore the station reaches On the loading terminal over there On the port the ore is washed. Into the big Batata Lake The waste is poured The river not to pollute And its nice fauna to preserve (...) The shiploader is to arise On the big riverbank it will The depth there permits Berthing of the big ship That will carry the worthy ore And split it all over This large and great Brazil A village constructed will be That is the residential area To the East of our port The industrial area is sited To resident families to live In the dwellers group
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With the task force One thousand employees will come In the Project to work Of our Mineração The Progress to bring To this rich region
Our undertaking headquarters In Belém, Pará is located On Almirante Tamandaré it is Where any car can pass Right on the Padre Eutíquio corner No way to err
Besides the townsite Also an excellent hospital Constructed will be Emergency cases to attend Whenever personnel needs
Mineração Rio do Norte As an Industrial Company Authority already has To grow to be the greatest Ore mining company On the equatorial zone
An Elementary School It will have and Secondary one too And that is quite good Commercial installations With recreational games Not available everywhere Houses to everyone Available will be to each rank Bachelors in normal houses Unskilled laborers as usual In the general camp housed will be A twenty-apartments guesthouse To visitors available will be They come to see our job And this is good because we know That merits we all have
This is the reason for this booklet I have prepared with affection To let everyone know The reason of this Project A noble and paramount gesture That we have to show That is to pay homage To the men of this Nation To our President also Mr. Idalmo Mourão That did not spare sacrifices And in a youngster effort This Project implemented Right on this river bank To the pride, honor and glory Of this beloved Brazil
The constructed road Paved will be Also constructed has been An airfield for aircrafts to land Already planned has also been A long distance communication
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First Aid Main gate. 1999 - MRN’s collection.
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C1
D1 - D2 MADEZATTI
Vista aérea da Chácara Akebono. Década de 70. Acervo MRN
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B
Page 114 - Air view of the townsite during construction, the Madezatti D1, D2, C1 and B-type houses are visible. Author’s collection. Air view of the Akebono Farm. 70’s. MRN’s collection. Page 115 – Guesthouse main gate. 1999. MRN’s collection.
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Cape Race ship that marked commencement of MRN commercial activities on 13 August 1979, captained by Com. J. G. Jones. Destination: Alcan, Canadå. Author’s collection.
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Erection of the Power Station. 1978. Author’s collection.
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Radio system adopted by MRN for communications among Porto Trombetas and Belém, São Paulo (Alcan) offices, installed in 1970. This was the only communication system available in Porto Trombetas until 1979, when the first Telepará telephone station was inaugurated. The small photo below shows this equipment being used by employees. Author’s collection.
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Airport passengers’ terminal built in acariquara wood during the construction stage. 1987. Photo taken by Aerocolor Ltda. Author’s collection.
Airport runway suitable to Boeing-type airplanes. To the left above, a general view of Porto Trombetas. 1988. Photo taken by Paulo Arumaá. Author’s collection.
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Railcars loader constructed at the bottom of the Saracรก Mountain.
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Inside view of the dry bauxite storage building – the “Bauxitão”. during the erection stage. On the right bottom corner, an outside view of the “Bauxitão”. 1979. Author’s collection.
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Main office. On the left corner below, view of the provisory wooden office used during construction. It was discontinued in 1987 when the new building above, constructed in front of the old one, close to the Trombetas River, was inaugurated. MRN’s collection.
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Gas station in Porto Trombetas, inaugurated in 1984, to supply fuel to light vehicles. Author’s collection. Montagem do depósito de bauxita seca, o “Bauxitão” - vista externa. 1979. Acervo do autor.
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CONSAG DC-3 airplane used during construction. Mr. Hamilton to the right.
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Construction of the Trombetas River Water Intake Installations. 1977. MRN’s collection. (to the left above) Sewage Treatment Installations. 90’s. MRN’s collection. (above, to the right) Wooden Crossties are laid on the laterite-ballasted railway. 70’s. MRN’s collection.
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TYPICAL GEOLOGICAL CROSS-SECTION
1 – Organic Soil – 0.5 m
2 – Yellowish Clay – 10.0 m
3 - Nodular Bauxite – 2.5 m
4 – Ferruginous Laterite – 1.0 m
5 – Massive Bauxite – 4.0 m
6 – Clay and Sand
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Mineração Esporte Clube Installations. On the background, the former “boite”, known as “Palhoça”, already demolished. 90’s. MRN’s collection.
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Prof. Jonathas Pontes Athias School, during construction in 1979 and twenty-years later. MRN’s collection. Students in the Library. 90’s - MRN’s collection.
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Shiploader construction - underwater piling stage and shiploader erection. 70’s. Author’s collection. (to the right, the Shiploader already in operation)
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Washing Plant Erection at the Port area. On the detail the installed rotary drums. 70’s. MRN’s collection. Drying Plant on the Port area during the erection stage. On the second photo to the left, detail of the 2 rotary drums and respective chimneys. Car Dumper under erection at the Port area. 1978. Author’s collection. General view of the laterite-ballasted road/railroad. Photo taken by Paulo Arumaá. 70’s. MRN’s collection.
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MRN’s Executive Committee, 1979. From left to right, Paulo Burnier, commercial director (replaced Waldyr Juruena Pereira), Fúlvio Vieira Fonseca, director of operations, Miguel Rodrigues Nunes, director president, Fernando Saraiva Salgado, administrative director (replaced Osmar Franco Jannotti) and Ozair Pereira de Siqueira, director of finance and control. Author’s collection.
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Porto Trombeta’s aerial view. 1990’s. MRN’s Archives
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MRN’S GROWTH
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From 1979 to 2000, MRN production capacity grew from approximately 3.5 million tons to 11 million tons per year, of which a large ore volume is destined for the domestic alumina and aluminium refineries. The remainder is exported to various countries in Europe and North America. This significant production growth was supported by investments on technological improvement, optimization and rationalization of administrative, operating and technical standards. Besides such investments directly connected to the entrepreneurial structure, MRN’s growth over the latest decades was also based upon continuous improvements to social responsibility practices, extended to its inside public, surrounding communities and environment. Therefore, MRN’s growth has to be measured not only in terms of national or foreign currency or percentages: MRN’s development has been extended to the whole region and is reflected throughout the country as well, and undeniably, this is an invaluable legacy.
MRN AND THE DOMESTIC MARKET
Initially, the vision was to
produce 3.35 million tons of ore yearly in the early stage, gradually expandable to reach eight and even ten million tons of bauxite, as and when the market grew to absorb additional capacity, and this vision materialized later. Investing a low of US$ 14 million it would be possible to achieve four million tons per year. The early output was entirely absorbed by the foreign shareholders; no sales to the Brazilian shareholders were initially envisioned. CBA, with industrial complex sited in Sorocaba (SP), had its own source of bauxite supply in Poços de Caldas (MG) and CVRD’s plans to construct alumina and aluminium plants in the north of the country had not yet gone off the ground. When Alunorte – Alumínio do Norte do Brasil and Albrás – Alumínio Brasileiro S.A. projects were implemented, both in the State of Pará, MRN’s production scale would be increased to five million tons per year. Exports commenced in August 1979, and production in that year was 672
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thousand tons. In 1980, exports achieved 2.9 million tons and from 1981 onwards, exceeded three million tons per year. In compliance with the long-term sales contracts, the whole production would be exported, estimatedly generating over US$ 80 million yearly revenue. Whilst initially MRN’s whole production were basically destined for the external market, significant changes occurred in the national aluminium industry scenario as the time went by, and this also changed MRN’s consumers’ profile. On those far-off days, CVRD, through Valenorte, held 60.8% participation in Alunorte’s share capital and 51% in Albrás’. Such companies are presently associated to Nalco – Nippon Aluminium Co. and other Japanese corporations, as well as to other domestic and foreign concerns, including MRN, which also participates in Alunorte’s equity. Alunorte’s plant was designed to produce 800 thousand tons of highly pure alumina and towards this end, US$ 410 millions were the then estimated investment. Albrás aluminium output was estimated at 320 thousand tons/year. Its industrial facilities, to be constructed in the vicinities of Belém, would require US$ 955 million investment and was estimated to invoice US$ 320 million yearly. Valesul Alumínio S/A, implemented in the State of Rio de Janeiro, was estimated to invoice initially US$ 80 millions per year and required US$ 264 million investment. Both, Albrás and Valesul would consume Alunorte’s alumina. Mineração Vera Cruz, in Paragominas, State of Pará, had 36% CVRD’s share participation, and Rio Tinto Zinc also. Entry of other shareholders was foreseen, provided that Brazilian majority share participation were preserved. Vera Cruz was estimated to produce four million tons per year of bauxite and some US$ 300 million investment would be required. CVRD held another bauxite mine in Paragominas still under prospecting stage. Albrás and Alunorte aluminium and alumina plants were scheduled to go on stream in 1983, however this did not materialize. In fact, Alunorte’s operations commenced only around mid-1995.
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FINANCIAL EVOLUTION
US$ 390 million was the amount invested
in MRN’s project implementation up to the start-up date in August 1979 entirely in the construction of the industrial complex: mine, road, railroad, beneficiation installations, port and all support infrastructure. US$ 148 million was the shareholders’ participation (equity) versus US$ 240 million financing (debt). The latter comprised borrowings and financings, Banco da Amazônia (BASA) and Agência Especial de Financiamento Industrial (FINAME) outstanding among them. The financing structure was as follows: BASA – Cr$ 740.4 million in the Brazilian currency then prevailing (equivalent to US$ 43 millions); US$ 20 million from the Banco do Brasil S. A. and US$ 18 million FINAME’s credit line to purchase domestically-fabricated equipment; US$ 20.6 million from the Banco Nacional da Habitação (BNH) to finance the townsite and community installations; US$ 130 million from Irving Trust Company and Orion Bank Limited, leading a consortium of international banks; US$ 15 million from the International Finance Corporation – IFC and US$ 11 million from the Export-Import Bank of the United States/Irving Trust Company to cover equipment imports from the United-States. Also a total of US$ 6.7 million heavy equipment suppliers’ financing was obtained to cover importation of two British power generators, the Italian shiploader and remaining imported equipment. When operating at full capacity, the Trombetas Project bauxite exports would yield US$ 80 million foreign exchange that would be MRN’s contribution to the Brazilian trade balance. MRN would pay approximately US$ 2.4 million (3%) yearly Sole Tax on Minerals (“Imposto Único sobre Minerais – IUM”) when operating at the full production capacity of 3.35 million tons – this being the only tax falling on mining companies. However, in 1999, MRN accounted US$ 41.4 million (17%) tax paid on an invoicing level in the order of US$ 237.8 millions.
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UNDERTAKING ACKNOWLEDGEMENT
Currently, the Trombetas
Project is recognizedly a real Amazon development and integration promoter, heavily contributing to man valorization, bringing new perspectives to them that formerly had very few job opportunities, and for this reason they lived exclusively from extractive and fishing activities. The beneficial effects of the Trombetas Project are also reflected on Oriximiná County surrounding towns, on the population growth, new schools, hospitals, streets surfacing and greater commerce increment. Undoubtedly, Oriximiná is the town that has most benefited from the Trombetas Project. The economical growth of that County derives mainly from the ISS (service tax) and its share in all taxes falling on Porto Trombetas overall activities as well. Only as an example of the tax payment evolution to that County, in 1974, Service Tax was estimated at Cr$ 200 thousand but only Cr$ 4 thousand were actually paid; in 1975, Cr$ 284 thousand estimated as against Cr$ 7 thousand actually paid; in 1976, Cr$ 150 thousand were forecast and Cr$ 1,009 thousand actually paid (year the Project implementation commenced), and this already exceeded expectations; in 1977, Cr$ 150 thousand was predicted as compared to Cr$ 4,639 thousand actually paid and this was an astonishing figure there. From 1972 to 1979, Oriximiná’s population grew from 20 thousand to 32 thousand inhabitants. In 1975, 64 schools were available in the County while by 1979, this figure jumped to 136 state and county-supported schools. The Federal Government constructed a hospital that belongs to “Fundação de Serviços Especiais de Saúde Pública” (FSESP) (Public Welfare Special Services Foundation), which operations had MRN’s support. The Trombetas Project also gave rise to the installation of various health care units in the countryside. Other noticeable improvements to Oriximiná were: 4 thousand squares’ meter paved streets; a nice municipal sport stadium, a public square, market and slaughterhouse were constructed. The number of buses increased from one formerly to twenty in the beginning of 1979.
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As can be seen, the Trombetas Project contributed in large scale to the development of Oriximiná, formerly surviving from the Added-value tax and County Legal Participation Fund. In general, its population was almost exclusively devoted to agricultural, cattle-raising, extractive and subsistence activities or beef and manioc flour-supply to Manaus and “juta” to Belém, as well as to a few other urban centers in the South of the country. Nuts-extraction was until then the only regional relevant product for countrywide commercialization and export. Oriximiná” is a typically indigenous name, perhaps of Tupi-origin. Etymologically, “Orix” is of difficult identification, but it is possible to infer that it originated from “Uruçui-Arici-Orix”, (a bee specie) and “Mina” (husband, male), then meaning “male-bee”, or “zangão”. Frei Protásio Frinckel, who served the community over various years, was in favor of “Erezu-M’na”, which means “many shores” or “shore minas”. It was thought to be an indigenous dialect of mixed formation, since various indigenous tribes lived on the region, such as the “Pyanacotós” (Cachorro and Mapuera Rivers region) and “Kachuianás” (Grande River). Prior to the Trombetas Project, this barely known county – sited on the Suriname’s borderline and ranking the seventh larger area in the Amazon Region, with 109,267 km2 – all of a sudden commenced being highlighted both on the Brazilian and foreign press. Over the period the Project was under construction, Oriximiná was even considered as national security area and for this reason, the Brazilian President nominated its majors.
CONTINUOUS IMPROVEMENT PROCESS
One of the main
characteristics of the management system since MRN went on stream in 1979 is the continuous pursuance to the operating excellence, and as a consequence, the performance indexes are ever exceeding the targets. The achieved results mainly over the past ten years clearly indicate how successful this management philosophy has been.
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Management tools, like the Yearly Target Plan and Management by Guidelines (MBG) have been essential to reach positive results. The Target Plan defines the goals, but this is preceded by discussions with managers in such a way that they should be challenging but never unattainable. They are unfolded to each management level and disclosed to all employees. This process starts from definition of the per formance index and productivity gain projections. Gains are suggested by the top management, discussed and accorded with the managers, splitted into projects to be developed by the operating areas with the par ticipation of all employees. By so acting, the commitment of all involved with the proposed targets and guidelines is sought. Other highly relevant aspect of the performance rates is the company-employees mutual respect, that stimulates the employees to come with suggestions, express feelings and uneasiness, all in a healthy environment where relationship improvement opportunities are ever sought. By so acting, an environment that brings satisfaction to the whole organization’s employees is reached, and likewise, challenging activities and targets are defined to reach all employee ranks. Such are MRN’s bases for all actions towards continuous performance improvement search. Additionally, very often, MRN makes available to its contractors new technologies applicable to planning, control and production optimization. Close attention to technological developments is essential to get operating gains. It is worth mentioning that along the company evolution, its management always invested in equipment and process improvements, such as to having the mobile equipment fleet well fitted; Maintenance Management improved with implementation of routine maintenance based on field inspections and preventative and predictive maintenance plans; utilization of large size tractors in the stripping and excavating activities, thus discontinuing blasting; use of roll crushers and ever improving Ore Quality Control System.
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INFORMATION AND COMMUNICATION TECHNOLOGIES Ever pursuing the latest technological progress, MRN’s continuous investments in information and communication technologies have been other MRN’s important capability growth factor. Since the beginning of the Project Construction in 1976, MRN used CVRD’s corporate information systems, as did all other CVRD’s affiliated companies. Up to 1982, Accountancy, Budget and Costing, Materials and Personnel data were processed by CVRD, at proportionally low cost if efficiency is taken into consideration, and when compared to similar services available in the market. Only in 1982 MRN initiated implementation of its own information technology system, which commenced operating in Trombetas in 1983; around end-1983, the first Cobra 305 microcomputer was received there. Other microcomputers were gradually added to MRN’s system, widening its works possibilities that were extended to the operating, administrative and finance areas in Rio de Janeiro. CVRD’s system no longer met the growing automation and data processing needs of MRN’s various administrative and operating areas. For that reason, the Executive Committee proposed, upon suggestion of its Director of Finance and Control, to hire Arthur D’Little to prepare an Information Technology Master Plan – ITMP, which would bring technological innovations specifically oriented to an enterprise which main activities were located in the Amazon region and with quite peculiar characteristics. The Executive Committee then defined the basic premises to have the whole company covered, however, at compatible investment and with no excessive sophistication, full information technology ensured, reduced operating cost, increased efficiency and productivity and reduced bureaucracy, so improving communications and providing support to the decision-making process. After one-year work, the ITMP designed to cover the period from 1985 to 1990, was ready. Ever closely following up the topmost technology applicable to this
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sector, MRN was the first private company in Brazil – except for banking services – to have a Small Size Ground Station - SSGS – interlinking Porto Trombetas to the Rio de Janeiro Offices where the Executive Committee seated. The efficient and safe on-line data processing via satellite and thence to the Embratel Communication Center in Mosqueiro, Belém, as inlet/outlet portal to the Brazilian Communication System, was fully functional, precise and efficient. Logistic issues required that the first DPS were installed in Belém - where MRN’s legal domicile then was - starting with a powerful IBM 4341 Main Frame soon changed to an IBM 4381, which operated over some years, being later replaced by a more modern and efficient equipment – the AS 400 microcomputers which flexibility was then considered fantastic. Later on, as a consequence of new facilities added to the communication system, the Belém DPS was shut down, and this resulted in operating improvement and cost reduction. The whole hardware and software were transferred to Porto Trombetas and installed in a 560 m2 building especially constructed to house them. It was inaugurated in 1988 and is still operating there. Later on, MRN implemented net-connected microcomputers to replace the AS 400, and up to now, this system has efficiently been performing its role, processing the best quality data that fully meet the users’ needs. Currently, MRN holds a modern Information Technology (IT) model that is essential in all administration and technical processes. The possibility to concentrate the Company management in Trombetas was an additional advantage of such autonomy. Since 1998, when the Rio de Janeiro office was closed up, MRN’s Executive Committee has been physically on-site.
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NEW ENVIRONMENTAL PATTERNS
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As from the 80’s, the Brazilian society and authorities awoke to the environmental issues, and to them more emphasis was given. Up to then, this sort of concern was unusual in many country regions and in the Amazon region likewise: bush-fell was by then considered as civilization and progress leverage an indication. Even so, since operations commenced in 1979, rehabilitation of the mined-out areas and how to do this were a constant source of concern within MRN. After deforestation and removal of the thin humus layer, the Amazon soil rehabilitation was not an easy task. Besides the direct impact on the mined-out areas, destination of the bauxite washing tailings was another source of concern: though neither toxic nor polluting, since it was nothing more than a barren mud, in the near future it would settle down on the river bottom and cause damages to the environment. Initially, the washing tailings were poured into the Batata Lake in order to avoid major damages to the Trombetas River. However, over the subsequent decades, concepts and actions concerning environment preservation were entirely reviewed by MRN, partly caused by pressure on the part of the public opinion but, and above all, through an ample review of worth and concepts; currently MRN develops a modern environment policy envisioning not only to rehabilitate the devastated areas as a result of operating needs, but also to turn them still better. Well aware that the aluminium ore is an exhaustible asset, though some decades will elapse prior to reaching exhaustion, MRN expects to leave as legacy to the whole region, other sustainable development options, inherent to the regional nature.
REFORESTATION
When search for solutions to rehabilitating the
areas that would be mined were undergoing, the utilization of species alien to the Amazon flora was considered: such was the case of the eucalyptus trees, fast growing and already experienced in other Brazil regions; fruit-trees planting and pasture formation were other considered alternatives.
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However, it was soon decided to reforest the mined-out areas with combined fast-growing species of the region. Rehabilitation of the mined-out areas in largescale using native species would be a pioneer experience in the Amazon region. With this vision, even prior to de-bushing the area for implementation of the Trombetas Project, an inventory of the regional flora was carried out. The envisioned models for transplantings production and plantation were improved over the years and the results obtained were entirely favorable both to the flora recovery and fauna conservation. Reforestation activities by MRN commenced early in 1981. Up to 2000, 1,329 hectares had already been reforested. The main objective was – and still is – to seek formation of a forest with characteristics and bio-diversity as close as possible to the original forest. Prior to planting the native species, the organic soil preserved from the mining activities is returned to the previously prepared area. An yearly average of 80 different species are planted, at a rate of 2,500 transplantings per hectare. In order to provide support to the reforestation activities, MRN implemented a modern greenhouse with 560 thousand transplantings yearly production capacity. During the project implementation, a greenhouse was cultivated in Porto Trombetas and another in Óbidos, where 60 thousand transplantings of 57 different species grew, and within eight months, many of them had already been used in the townsite and industrial complex landscaping. As the years went by, it was felt it necessary to scientifically measure the results of the undergoing reforestation efforts. With the objective to evaluating the efficiency of the mined-out areas reforestation methodology, in 1995, MRN created a reforestation-monitoring program. A Five-Year Plan was then prepared, under which yearly revaluations were contemplated, and in 1996 this was already operational. Agreements were entered into between MRN and two worldwide reputable concerns - Museu Paraense Emílio Goeldi and the Instituto Nacional de Pesquisas da Amazônia (INPA) to carry out this program. Through them, it is possible to get
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reforestation diagnosis and design short, medium and long term plans of action. An average of US$ 150 thousand is the yearly investment in this monitoring program.
SOLUTION TO THE DAMAGES CAUSED BY THE BAUXITE WASHING Despite the reforestation initiative launched by MRN envisioning to cause as low as possible impact to the ecosystem, the company had to face with another challenge. When the project was constructed, no economically feasible technology was available for destination of the washing residues and lacking this, they were discharged into the Batata Lake. After some years, it was clearly evident that the washing waste – the red mud - settled on the bottom of the lake was suffocating and consequently killing the typical floodland bush. The food chain was then being broken since the vegetation feeds various fish species which, on their turn, feed birds and so on. The red mud was causing the ecosystem to lose its balance. A solution to this adverse effect had to be found, new tailings disposal alternatives sought. In 1986, after many years studying and analyzing ten different alternative solutions, MRN opted for an absolutely clean one, whereby the beneficiation tailings fully return to the reservoirs constructed on the mined-out areas. After the waste is settled, the areas are prepared and reforested. Approximately US$ 82 millions were invested in the implementation of this model, which will avoid settlement of particles on the bottom of rivers and lakes. This pioneer solution in bauxite mines in that the washing residues are returned to the mined-out areas became operational in November 1989. This required the Washing Plant transfer from the port to the mine area and production capacity increase. The destination of the washing water carrying all bauxite impurities is the tailings reservoir that is a large artificial lake averaging 45-hectares wide and eight-meters deep. In this reservoir, the solid particles settle down and the recovered clean floating water is added to the beneficiation plant circuit water for reutilization. This means that a part of the five thousand cubic meter water
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required by the washing system is ever re-used. In short, the technical changes to discontinue tailings disposal into the Batata Lake is as follows:
Crushing
The crude ore is crushed by two crushers each one sited on a
different mine. This concept of simultaneous operation of more than one mine was adopted to ensure that the produced ore quality be constant along MRN’s ore deposits’ useful life. On average, each crusher capacity is 1,700 ton/hour and 800 ton/hour respectively. After crushed, a belt conveyor carries the ore to a 70,000-ton storage capacity homogenization stockpile. A bucket wheel reclaimer carries the ore to feed the Beneficiation Plant.
Washing Plant
The ore is splitted over five equal production lines. Initially,
the particulates are disaggregated and classified in rotary drums. Plus three-inch particulates are carried to a roll crusher where they are re-washed and stockpiled as grainy material. The minus three-inch material is classified in vibrating screens and separated by size: minus and plus 14 mesh grain sizes. Belt conveyors carry the plus 14-mesh material to a 280-thousand-ton capacity grainy product stockpile. The minus 14-mesh material is pumped to 26” diameter hydro-cyclones where the fines are produced (minus 14 mesh to plus 150 mesh). The tailings resulting from the 26” cyclones are pumped by 10” and 4” diameter hydro-cyclones, where the superfines are produced (minus 150 mesh to plus 400 mesh). The minus 400-mesh material forms the bauxite tailings and is discharged into the tailings reservoir. The cycloning system production is destined for the 100 thousand ton capacity fines stockpile. Water is essential in the bauxite beneficiation process. Approximately five thousand cubic meters/hour are required to “clean” the crude bauxite and the washed bauxite is the resulting product. The tailings reservoir is the destination of this water mixed with the bauxite impurities. The tailings reservoirs are the great technological novelty in MRN’s bauxite beneficiation process. When the tailings discharged into 45 hectares reservoir are
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35% to 40% settled they are dredged and pumped back to the previously prepared mined-out areas. There they will finally remain and evaporation will gradually reduce the water content until planting conditions with native species are reached. In a first stage, leguminous plants are planted with the purpose to attach the nitrogen to the soil and in a second stage native essence species are planted to form the future forest.
Recovery of the Batata Lake
Besides investing in technological
methodologies to discontinue tailings disposal into the Batata Lake, massive resources were allocated to re-habilitate its environmental balance. In 1987, a limnology specialized-team from the Rio de Janeiro Federal University (RJFU) was hired to implement a number of actions with the purpose to monitor this problem and propose solutions towards the lake recovery. In view of the pioneering characteristics of this task, it attracted the attention and interest from various experts, not only from RJFU, but also from the Juiz de Fora Federal University, State of Minas Gerais, the latter, more recently. The findings of some surveys on the impacted area initially carried out indicated the need to create a substratum with as close as possible characteristics to the natural sediment in order to make colonization by native species possible on new flood-lands that were formed as a consequence of the effluent pouring and next reforest the areas where the bush perished. Tests were carried out towards creation of an organic substratum on the settled effluents, adding different sources of organic matter available in the region. This material should first turn colonization possible during the high tide, especially of the bentonic fauna. This was highly significant, since its basic purpose was to restore a considerable part of the ictiofauna, of carnivorous habits, and enable re-suspension of the effluents during the high tide, thus improving the water luminosity. Additionally, creation of an organic substratum makes it possible to restore the typically dark color of the Amazon lake sediments. This procedure is then partially restoring the landscape.
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Forest humus, bark and grinded wood chips, coarse and fine sawmill residues and ground grass are used as source of organic matter. The preliminary results showed that the higher density materials, such as ground wood chips, were the most adequate. Recovery of the perished vegetation is one of the most important stages of the landscape restoration at the damaged lake area. To this effect, preliminary tests were carried out in that re-colonization with flood-land native species was tried. The main restraint to the effluents’ colonization is the inexistence of mineral salts structure and absence of texture. Later on, based on the natural process of utilization of high and low tides typical of the region, a new technique was implemented. This procedure originated from the field observations during the periodical lake monitoring, in that the flood pulse is an important factor to determine the ecological profile. For instance, the flood pulse is responsible for the periodical flow into the lake of a large amount of seeds from both the dry and floodland forests. Only a small fraction of such seeds germinates on the shoreline; the remainder is lost to other ecosystems or joins the lake waste chain. For this reason, during the low tide, dead trunk barriers are settled opposite to the river stream direction. Such barriers allow the seeds to sink and germinate during the dry season. Though simple, this procedure has been highly efficient, since a great number of species germinated on the tested areas. After over ten years of intensive actions toward the lake rehabilitation, the results have been encouraging: around 47% of the devastated area have already been reforested and all projections indicate the gradual restoration of its ecological balance.
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THE BATATA LAKE GAINS NEW LIFE
Over the past few years,
the Batata Lake rehabilitation results have been quite encouraging. An area of sixteen hectares parallel to the Trombetas River was colonized with some 50-tree species. Many of them already achieved six meters in height, are blossoming and bearing fruits, which are evidences of the sustainability of this habitat. Recovery of other areas where the natural colonization process is ineffective or even inexistent is based upon the scientifical analysis of the findings of this phenomenon. A long strip adjacent to this area damaged by the bauxite tailings is being colonized with a specie of rice (Oryza glumaepatula), known in the region as “wild rice�. Monitoring of this strip so colonized has shown that it has greatly contributed to the rehabilitation of the Batata Lake. The rehabilitation process is evidenced by the incorporation of the wild rice biomass to the tailings thus improving its structural and nourishing conditions. The seeds intensively produced by this specie nourish various fish species thus contributing to their return to the rehabilitated area formerly impacted and there they resettle and propagate. However, on some areas, hydrological factors jeopardize seeds brought by the high tide to settle on the lake bottom. This is the main reason why they remain practically void of creeping plants and tree species. Floodland species were then planted on such areas, and in terms of landscaping, its restoration has been compatible with the Amazon scenario. Amidst the parameters that can be considered as success factors of the intervention in the floodland areas impacted by the bauxite tailings, the vegetal cover and natural regeneration outstand. Out of the 103 hectares of the area polluted by the ore tailings disposal into the lake and where revegetation is possible, 47 hectares have already been rehabilitated.
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MRN: ENTREPRENEURIAL CITIZENSHIP
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Development indexes of the whole complex clearly evidence that, over the years, the Trombetas Project became one of the most important nucleons of regional integration and economical, social and cultural promotion. In December 2000, MRN’s direct and indirect labor totaled 2,032 persons, 84% of them born in the North Region. Six thousand inhabitants live in the Trombetas town and there they enjoy all facilities required for an excellent life quality. However, MRN’s responsibilities go much farther than to provide resources to the community directly involved in its business. Along its lifetime, the company has been trying to incentivate and promote interchanging actions, besides offering better life and work options to the whole surrounding communities whether in the Municipality of Oriximiná or in the Trombetas riverside. Additionally, along the past few years, MRN has also developed successive labor qualification and improvement programs, always abiding by quality targets.
BOA VISTA COMMUNITY
The Boa Vista community is sited quite
close to Porto Trombetas, and their inhabitants are remnants of far-off-years’ “quilombos”. Certainly, the Trombetas Project implementation in some way jeopardized that community whose inhabitants had preserved the same life style of their ancestors. If on one hand MRN’s project partly changed the Boa Vista inhabitants’ life style, on the other hand, it brought significant improvement to their life quality. Towards this end, the Company has been developing significant social actions through the Trombetas Riverside Communities’ and Remnant Quilombos’ Regional Development Program. Through such actions, MRN basically seeks ways and means to expand their sustainable economic development possibilities that also include health, education and environment. A few examples of such initiatives in Boa Vista are the construction of a manioc flour mill; development of techniques and donation of honey production equip-
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ment; donation of matrixes for chicken reproduction, which means flesh and eggs eating; provide assistance to their organizing a work cooperative and open job opportunities to the riverside population, in addition to the incentive to vegetable and leguminous products cultivation. Additionally, MRN also supports environment preservation and rehabilitation projects arising from the communitarian work, such as fruit trees planting on 70 hectares of formerly devastated bush, manioc planting, raising of six thousand turtles donated by CENAQUA and fifteen thousand fishes in a 11 thousand m2 lake, and also rehabilitation of 21 hectare of gallery-bush in the Água Fria Creek. Concerning education MRN, in agreement with the Municipal Prefecture, supports an elementary school in Boa Vista from the 1st to the 4th grades; from the 5th through the 8th grade, besides the three years’ pre-university course, acceptance at the Porto Trombetas School is ensured to the Boa Vista students. The nearby communities also have access to medical and hospital care in Porto Trombetas, on-site medical care and preventative health preservation actions - a joint effort of MRN and Universidade Federal Fluminense (UFF).
LONG DISTANCE TEACHING
- One of MRN’s objectives since the
beginning of the Project implementation was to have its labor force qualified along individual profiles set up for each job and function. This objective was further strengthened with the implementation of the Total Quality Program. In 1995, amidst other initiatives, MRN brought to Porto Trombetas the Individual Long Distance Teaching in agreement with Centro Educacional de Niterói, an affiliate of Fundação Brasileira de Educação (FUBRAE) (Brazilian Educational Foundation), which was replaced in January 2000 by the Serviço Social da Indústria – Regional Pará (SESI-PA). Touched by the potential of the interested persons MRN extended this opportunity to employees of other companies and to the whole community. This Program commenced in September 1995, with groups taking up from the 5th through
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the 8th grades of the elementary school and from the 1st through the 3rd preuniversity grades. As from April 1998, this Program was also extended to the elementary school students from 1st through 4th grades. A modern methodology is adopted and covers various disciplines’ modules; the pupils study at home and are followed up by monitors that, at classrooms, clear up all doubts and strengthen apprenticeship and apply evaluation tests. The elementary teaching from 1st through 4th grade is entirely ministered at classrooms, with continuous teachers’ follow-up, since the students are still under the alphabetization process, and it is too much to expect that they have acquired enough knowledge to alone develop reading ability, evaluate and prepare the necessary memorization exercises required to understand the teaching content. During the second year of this project, it was open also to students of the regular elementary school, whose age was above that expected for students still taking up the elementary school. The first class was graduated in 1996. So far, over 170 persons completed the elementary and pre-university courses. The long-distance monitored course has the administrative and pedagogic support of Fundação Vale do Trombetas, under MRN’s sponsorship, and comprises a coordination, four teachers and an administrative assistant - all of them SESI-PA employees – who provide assistance to 450 students.
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MRN Memorial House, (Inside and Outside views) inaugurated in August 2000
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MRN Memorial House
Mineração Rio do Norte’s Memorial House was inaugurated on 26 August 2000, as part of the celebrations of its twentieth year of operation and anniversary of the first Trombetas bauxite shipment. It was installed in the first residence constructed in Porto Trombetas, which, over 25 years, was dwelt, by various engineers and technicians. The MRN Memorial House’s initiative has the purpose to disclose to visitors, researchers and mainly to the Trombetas and the whole region communities, some marked aspects and happenings along the company’s trajectory. The MRN Memorial House is a permanent exhibition where general information on technical aspects of MRN’s business, its evolvement and the local reality is available. The bauxite mining, the aluminium industry, the Amazon nature and communities are portrayed on the panels, with texts and legends both in Portuguese and English. The MRN Memorial House has a miniature of the mine area, besides various other historical treasures, such as all trophies awarded to MRN. It also includes a “Presidents’ Gallery” where pictures of all presidents of the company since its incorporation in 1967 are exhibited, besides a space set aside for audio-visual presentations; and, finally, a magnificent garden. The major objective of the MRN Memorial House is to serve as a basic reference on MRN’s and local communities’ trajectory.
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A solemn meeting held on 12 July 1978 in that the US$ 130 millions financing contract between MRN and a bank consortium under Irving Trust Co. and Orion Bank Ltd. leadership was signed. No other financing contract of such a magnitude had ever been entered into by a private Brazilian company and foreign banks. On the background, Mr. J. M. Garcez, MRN’s Lawyer, and to his left, in a lightcolor suit, Mr. Ozair Pereira de Siqueira, MRN’s Director of Control. Author’s collection.
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Historical meeting that sealed re-structuring of the aluminium industry in Northern Brazil, on the centerbackground, Mr. Everaldo N. dos Santos, director president of Alcan Alumínio do Brasil, to his left, Mr. Sérgio Goloubeff, Billiton’s representative, and to his right, Mr. Fábio Soares de Matos, Aluvale’s representative. 20 December 1991 - Author collection Inauguration of MRN’s Data Processing Center on 9 July 1988, in Belém (PA) - from left to right, João Márcio Rezende Queiroga, MRN’s director of operations, Fúlvio Vieira Fonseca, director president, Nelson Ribeiro, Secretary of Commerce, Industry and Mining of the State of Pará, Eustáquio Parreira, MRN information technology manager and farther right, Ozair Pereira de Siqueira, director of administration and finance, who had his vision materialized. Paulo Arumaá photo - Author collection
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Pages 168 and 169 - above, the New Washing Plant on the Saracá Plateau. 90’s. MRN’s collection. Page 168 - below, from left to right, Quality Control Laboratory. 90’s. MRN’s collection. Technological Information Center Building, in Porto Trombetas. 90’s - MRN’s collection. Page 169 - below first bauxite shipment to Alunorte in May 1995; port of destination Barcarena (PA) - from left to right, Paulo Sérgio Tovar (MRN), Ronaldo Aroeira (MRN), José Abílio Chartomi (Alunorte), Galib Chaim (Alunorte), Ricardo E. Saad (MRN), Andrew N. Carruthers (Alcan Canada), José Carlos Soares (MRN) and Eugênio da Conceição (Docenave). MRN’s collection.
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Saracรก Plateau area mined in 1980 and reforested in 1981. The same area four years after reforestation: view of the flora rehabilitation. Aerocolor and Paulo Arumaรก photos. Author collection
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New crushing plant on the Saracá Plateau. 90’s. MRN’s collection. Page 173 Car dumper. 90’s. MRN’s collection.
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MRN Memorial House - Inside and Outside views - inaugurated in August 2000
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Operating flow sheet after modernization of the washing plant.
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Appendixes
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MRN’S SELECTED DATA FROM THE FIRST YEAR OF OPERATION TO YEAR 2000 Year
Bauxite Production
1979
672
1980
Capital Expenditures*
Net Sales*
Net Income*
384.522 **
12.628
7.424
2.872
5.403
71.804
(2.495)
1981
3.288
13.977
94.933
(5.946)
1982
2.814
7.707
95.060
(14.930)
1983
3.388
6.989
99.532
31.180
1984
5.030
25.756
142.322
61.994
1985
4.148
32.675
132.291
57.545
1986
4.639
18.423
121.176
32.613
1987
5.138
22.360
133.051
41.304
1988
6.075
59.387
162.702
57.845
1989
6.104
51.592
164.548
61.677
1990
8.003
48.300
194.345
50.655
1991
8.527
30.410
196.480
69.376
1992
7.302
23.544
158.327
37.140
1993
7.993
8.386
173.195
42.514
1994
6.745
7.164
142.547
17.505
1995
8.536
15.043
165.913
26.558
1996
9.604
67.697
214.121
64.151
1997
9.314
69.544
202.976
60.403
1998
10.101
16.254
224.170
69.219
1999
10.952
10.272
205.204
25.636
2000
11.211
34.211
217.040
91.126
Totals
142.456
959.616
3.324.365
882.494
* In US$’000 ** Total Trombetas Project investment value on the date it went on stream, compounded interests included. Bauxite Production: In thousand tons.
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ALUMINIUM INDUSTRY IN BRAZIL At present, Brazil ranks the third largest worldwide bauxite reser ves, with approximately 3.0 billion tons, the largest portion on the Amazon region, and this was an important factor to have the aluminium industr y in Brazil significantly driven ahead. From a modest aluminium production of some 800 thousand tons in 1945, the Brazilian output achieved 1,280,000 tons in 2000 that is an impressive figure.
BRAZILIAN ALUMINIUM PRODUCTION (In million tons) Year
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Aluminium
Bauxite
1992
1,8
1,16
9,4
1993
1,9
1,17
10,0
1994
1,9
1,19
8,7
1995
2,1
1,19
10,2
1996
2,8
1,20
12,3
1997
3,1
1,20
12,5
1998
3,3
1,21
12,0
1999
3,5
1,25
13,8
2000
3,8
1,28
13,2
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MRN’S DIRECTOR PRESIDENTS
Along its 33 years’ lifetime, MRN was
most fortunate to have counted on the invaluable contribution of its Director Presidents:
Francis Aubrey Sievert 06.05.1967 to 01.30.1968
Jorge da Rocha Fragoso 01.30.1968 to 02.17.1970
Raymundo de Campos Machado 02.17.1970 to 02.01.1972
Ivo Barone 02.01.1972 to 06.10.1974
Yves Picot 06.10.1974 to 07.31.1975
Hélio Bento de Oliveira Mello 07.31.1975 to 03.30.1976
Idalmo Mourão 03.30.1976 to 04.25.1979
Miguel Rodrigues Nunes 04.25.1979 to 09.17.1984
Fúlvio Vieira Fonseca 09.17.1984 to 09.22.1988
Raimundo Emerson Machado Bacelar 09.22.1988 to 05.09.1990
Francisco José Schettino 05.09.1990 to 01.11.1991
Antônio João Martins Torres 01.11.1991 to 04.03.1998
José Carlos Gomes Soares As from 04.03.1998 to date
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MRN’S SHARE CAPITAL STRUCTURE
Since MRN’s incorporation in 1967,
its share capital structure underwent various alterations, the second more relevant one being Alcoa Alumínio S. A.’s joining MRN as a Shareholder. Effective 20 December 1991, Alcoa became a MRN’s Shareholder, and this was topmostly relevant for the future of this Company. The new share capital structure arose from the assignment of a part of Aluvale’s and Alcan’s shares to Alcoa and Billiton and consolidated MRN’s status as bauxite supplier to the State of Maranhão - ALUMAR Aluminium Consortium’s alumina refinery. Also under the Shareholders Agreement’s provisions, the Cruz Alta bauxite deposits – some 200 million tons – were added to MRN’s reserves, thus extending the Trombetas Complex useful life to a farther horizon. MRN’s share capital structure as of 31 December 2000, ordinary and preferred shares included, was as follows:
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Vale do Rio Doce Alumínio S.A. (Aluvale)
40,00%
Alcan Alumínio do Brasil Ltda.
12,00%
Companhia Brasileira de Alumínio
10,00%
Billiton Metais
14,80%
Alcoa Alumínio S.A.
8,58%
Reynolds Alumínio do Brasil Ltda.
5,00%
Norsk Hydro Comércio e Indústria Ltda.
5,00%
Abalco S.A.
4,62%
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PRIZES AWARDED TO MRN
Up to 2001, the following performance prizes were awarded to MRN in several of its activities’ fields: 1995
Year Mining Company: conferred by Brazil Mineral Magazine for the best overall mining performance in Brazil. Labor Safety Performance Recognition Certificate: conferred by Billiton Metais S.A. for achieving 1,000,000 mh/ton worked with no labor lost-time accident.
1996
Vale do Rio Doce - CVRD Award for Management Performance Excellence: conferred by CVRD along the same National Quality Award – NQA’s performance evaluation criteria. Performance Recognition Certificate, conferred by Billiton Metais S. A. for achieving 1,000,000 mh/ton with no labor lost-time accident.
1997
Reliability-Based Maintenance Prize - RBM Excellence: conferred by CSI-USA, one of the most significant prizes in predictive maintenance. MRN was considered worldwide predictive maintenance benchmarking from among 60 participants. Special Safety Certificate: conferred by Associação Brasileira de Prevenção de Acidentes – ABPA (Brazilian Association for Accidents Prevention) in the non-ferrous metal ore mining industry for the lowest disabling injuries frequency rate in Brazil.
1999
ECO Award: Granted by the American Chamber of Commerce for the Best Brazilian Community Participation Project in 1999, thanks to the Riverside Communities, as well as the Trombetas Region Remnant Quilombos Development Support Programs. Safety Special Certificate: Awarded by “Associação Brasileira de Prevenção de Acidentes” – ABPA (Brazilian Association for Accidents Prevention) for the lowest disabling injuries frequency rate in Brazil in 1998 in the aluminium field. IPAI Benchmarking – Industrial Primary International Aluminium Institute: MRN’s labor safety performance was considered one of the best three amongst 151 plants belonging to 31 enterprises throughout the world.
2000
100 Best Enterprises in Brazil to work: bestowed by Exame Magazine and Great Place to Work Institute. This classification directly involved MRN’s employees. “Guia Exame 100 Melhores Empresas “ is an important national reference on personnel management practices.
2001
The Best and Greatest: “Exame” Magazine award for MRN classification as Year 2000 Best Company in the mining field. Ministry of Labor and Employment - NR 22: MRN was selected as paradigm in the mining sector with basis on its actions towards improving the work environment conditions over the past years it is in a privileged position to meet the new NR 22 regulation.
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TECHNICAL STATEMENT: SHIPLOADER ERECTION Basically, the Shiploader Comprises the Following Parts: Mobile back structure
It comprises a power-driven portico, which slides along an approximately 100 meter long straight wharf. It is equipped with a rolling block, which permits simultaneous rotation of the portico and main beam, on which it lies.
Rotary Platform
It comprises a ring, a rolling block and a superstructure that support the upturned crazy-wheel trains.
Main Beam
It consists of two box-type parallel beams, 6.6 meter apart from each other and bound by means of a sprocket and lattices lying on the rotary platform and also on the mobile back structure.
Shuttle
The Shuttle is the part that effectively carries the ore. The shuttle comprises the following main parts: Main beam: it consists of two box-type sprocket-bound beams and upturned lattices, where both belt conveyors control devices are installed; Boom: under the structural viewpoint it is identical to the Shuttle and an articulation on its rear part connects the boom to the Shuttle through self-aligning spherical joints; Mobile and fixed mast: the main mast through steel cables lifts the boom, which on its turn, is lifted by the fixed mast. The Shuttle is compensated by a 30-ton counterweight on its rear-end.
The shiploader is equipped with a 72� wide belt conveyor that is fed from the approaching transporter hopper. This set is adequate to operate at 20-km/hour maximum wind speed. Under the static viewpoint, it was designed to resist the wind speed with no additional anchorage. However, if the air current reaches 30 km/hour, the machine must be tied to the deck by means of anchorage ropes.
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Main Characteristics Boom:
Length from pivot center to the main pulley – 36 meter; Orientation speed referred to the centerline of the main pulley - approximately 2.4 meter/minute;
Transporter:
Distance between pulleys centers – ranging from 75 to 96 meters Belt width – 72” Belt speed – 2.3 meter/second Transportation capacity – 6,000-8,000 ton/hour Distance among upper rollers – 1,000 mm Distance among lower rollers – 3,000 mm Main pulley diameter – 1,000 mm Driving pulley and correction pulley diameter – 1,000 mm Guide pulley diameter – 900 mm
Translation:
Track gauge (distance between rails) – 4.88 meter Diameter of the portico translation wheel – 710 mm Diameter of the Shuttle translation wheel – 630 mm Total number of wheels – 16 Number of electric-driven wheels – 16 Translation speed – 18 meter/minute
Weights:
Weight of the set in operation – 1,000 ton Weight of the Shuttle counterweight – 30 ton Weight of the belt counterweight – 14 ton
Power:
Installed capacity – approximately 730 kW Entry stress - 440 V – 60 Hz Over-flexible laid cables – 20,000 m
Operator cockpit:
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Provided of air conditioning, windshield wiper, thermal glasses, adjustable chairs and two safety pedals.
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ERECTION PLAN
Basically, erection of the main parts of the whole set followed the manufacturer’s arrangement, with a few alterations to fit to the available equipment capacity. Erection of the back rotary structure: The translation wheeled-trains were initially preerected, two-by-two, on 300 TDW barges. Later on, the superstructure was uncoupled from the rolling block to permit its lifting by a 140-ton hoist installed on a 500 TDW barge. Erection was supported by hoist and followed the sequence below: Erection of the wheeled trains; Erection of the lower structure plus rolling block; Erection of the superstructure. Erection of the back rotary structure: Initially, this structure was splitted into two parts, that is, the superstructure was uncoupled from the rolling block. The erection sequence was as follows: Erection of the lower ring plus rolling block on concrete foundation; Erection of the superstructure; Erection of the crazy wheel trains. Erection of the main beams: Erection of the main beams’ section followed the sequence below: Pre-erection of the main beam sections 1 and 2 of the main beam A; Transportation and placement on the back rotary structure and ancillary piles; Transportation and erection of the main beam section 3 of the main beam A; The same sequence was followed for B beam erection; Erection of lattice between main beams A and B. Erection of the Shuttle: The Shuttle main beam section sidewalls were pre-erected on barges with the use of 140-ton hoist. The following was the erection sequence:: Set the rack on the latticing of the main beam; Erection of the wheeled-trains; Erection of main beam section 3 on crosstie flame; Erection of sidewalls on main beam section 3; Provisory sprocket setting of the sidewalls against the steel structures;
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Erection and screwing of the Shuttle beams and latticing; Wheeled trains coupling on the Shuttle and removal of the crossties; Lifting and fastening the rack under the Shuttle; Erection of the Shuttle transaction control group. Erection of the fixed mast: The following was the erection sequence: Erection of the mast support-cradle and sprockets with steel profiles; Erection of the fixed mast bottom; Erection of the hoist support beams; Erection of the hoist; Erection of the mast center segment; Erection of the masthead; Erection of the pulley block supporting beams, sheaves and axles; Erection of the mobile mast: Soon after completion of the fixed mast erection, the mobile mast was erected along the following sequence: Erection of the bottom mast lying on the fixed mast; Erection of the mast center segment; Erection of the masthead; Erection of the mobile mast lock; Erection of wheels and axles; Definitive hoist cables reeving. Erection of the Boom: Simultaneously with the mast erection, the boom was pre-erected on a barge with a 140-ton hoist. With the aid of two 140-ton hoists on a barge, the boom was lifted, transported and placed on its final position, then lowered on crossties and steel profiles lying on the main beams. Aided by sprocket and jacks, the articulations’ supports and boom support cables were placed. Before lifting the boom, the counterweights were installed for removal of the provisory supports. Erection of various structures: After erection of the large parts, erection of the other parts went on as follows: impact beam, chutes, operator cockpit support structure, belt structures and rolls, installation of control panels and electrical interlinks.
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ROAD AND RAILWAY DESIGN Technical Statement Generalities: Cuts and borrow areas earthmoving for the road and railroad construction amounted to 7,000,000 m3, approximately. Earth filling: Most of the fillings were carried out on flooded sites; consequently a number of difficulties were faced with for de-forestation, stripping and stumps-pulling services. However, the major problem was the thick organic matter layer on the creeks’ beds that was solved by removal of a large portion of this organic matter; however, later on, up to 0.50-meter sand above water level was used (ASTM D-2049-69). Reinforcement of the railroad sub-bed: This comprised a layer of constant thickness placed on the homogenized sub-bed. Control of the bodies’ filling’ compaction grade was determined as per DNER-DPT-M 92-64 method, using sand flasks. The ground there was favorable and quite homogeneous. Regulation and strengthening of the railroad sub-bed: Regulation of the railroad sub-bed had the purpose, whenever possible, to conform the railroad implementation bed leaving three meters transversally on each axle side and also longitudinally, by adding material. Laterite soil from the railroad reinforcement itself was the used material compacted to 95% of the Intermediate Proctor (DNER-ME 48/64). 20 laterite samples used in the reinforcement were tested and the test results, CBR characteristics, were as follows: Maximum density 850 – 1995 g/cm3 Optimum moisture 8.2 – 12.2% CBR (intermediate proctor) 34.0 – 96.0% Expansion 0.0 – 0.9% Percentage passing the sieve Nr. 200 – 12.1-24.9% Ballast: After the sub-bed strengthening was completed it was surfaced with a washed laterite layer. This layer was simply loosely cast and then leveled to permit rails and wooden crossties to be placed. A number of pros and cons arose from the use of laterite. Many studies were carried out on the following: Grain size distribution Los Angeles (MB-170) abrasion wear-out Laterite test results (ballast track): Percentage loss: 35.9% (500 turns – Grade 2) – 100 samples average Percentage loss: 50.8% (1,000 turns – Grade 2) – 12 samples
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average Comparative results with Rio de Janeiro granite. Results: A sample was submitted to such a strain that fines ranging from 7.5% to 12.5% were produced, as per DNER-ME 96-71 1/5. Conclusion: Field and laboratory studies showed that the aggregate standard tests did not come with mineralogical or texture alterations that could arise from the laterite use as time went by. For example: resistance to NA and Mg sulphate, hardness tests or simply dampen and dry by turns already provide some information on certain properties but not sufficient to reach any conclusion as to future behavior. The Los Angeles abrasion-resistance test results were very good, but not enough to convince the technical team. As a uniform powder-covered mass was frequently formed prior to 500 complete turns, it was felt that the stress could be lessened. Various tests were then carried out, such as: 250-250 and 100-100 turns drum-cleanse (nr. 12 sieve), however the results did not change. It was noticed from the mechanical stress evaluation tests that the heavier the burden, the poorer was the laterite behavior when compared to the granite fines percentage and penetration. However, in the case of 27 kg/cm3 loads, the laterite fines percentage varied from 4.9 to 6.6%, and 8 to 12 millimeters penetration, as compared to the Rio de Janeiro and BelÊm granite fines of approximately 3% and 6 and 3 millimeters penetration, respectively. The following were the Porto Trombetas railroad laterite ballast test results as compared Laterite Standard Ballast to the required standard ballast: 2.7 2.4 Apparent specific mass – min. g/cm3 Absorption (%) Apparent Max. porosity - % Los Angeles (max.) worn-out resistance % Treton stress index (max.) %
8.0 (12 Am)
1.0
20.0 (4 Am)
1.0
% 35.9 (100 Am)
40.0
19.9 (18 Am)
20.0
cubic
cubic
Shape
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MAIN EVENTS AFFECTING THE TROMBETAS PROJECT IN CHRONOLOGICAL ORDER 1961
Alcan loses its Boké and Guinea bauxite concessions
1966
English Guyana Independence
1967
Incorporation of Mineração Rio do Norte S/A; Discovery of commercial-grade bauxite: Saracá, on the Amazon Region.
1969
Alcan decides do launch the project at the level of one million tons/year
1970
Installation of MRN’s Executive Office in São Paulo; Serete/Soros and Alcan R & D are hired; First mining decrees are obtained; Ormet pays a visit to Porto Trombetas as potential bauxite consumer.
1971
Nationalization of the Guyana bauxite reserves (January); Companhia Brasileira de Alumínio – CBA visits Porto Trombeta as invited partner – October; Discovery of Paragominas’ bauxite reserves; Kaizer in April and Pechiney in December visit Porto Trombetas; CVRD (Brazilian Government) expresses its intent to participate in the Trombetas Project with 51% equity participation; The Trombetas Project is reviewed and re-designed to produce 3.35 million tons per year.
1972
The Brazilian Government determines that the Trombetas Project must have national investors’ participation; SUDAM approves a two million ton project but requires industrialization; Alcan discontinues the project in May, the alleged condition being the high investment required (US$ 126 millions); Agreement between Alcan and CVRD to review the project is signed in December.
1973
CVRD and Alcan representatives’ team visits potential consumers-shareholders; Japanese team visits Porto Trombetas; Alcan/CVRD and shareholders-takers finalize agreement in September; CBA decides to take up 10% shares in MRN capital stock.
1974
IBA – international Bauxite Association is formed; Reynolds and Billiton visit Porto Trombetas; MRN’s Shareholders Agreement is signed on 4 July
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1976
Implementation of the Trombetas Project at the level of 3.35 million tons is approved in March (the well-known green light).
1978
Labor force peak on the job site - 6 thousand men; On 12 July, MRN signs the highest foreign loan contract ever entered into in Brazil (US$ 130 million) with a bank consortium under the leadership of Irving Trust Co. and Orion Bank Ltd.
1979
13 August, the Cape Race vessel loaded with the first bauxite cargo – 21,054 thousand tons - leaves the Trombetas Port; destination: Alcan Canada; On 21 September, the President of Brazil signs Decree nr. 84,018 creating the Trombetas River Biological Reserve on the Trombetas region (385,000 ha).
1983
Change of railroad washed laterite ballast for crushed stone. The services commenced in July and were completed in December. In November, a ship loading record was broken when 52,600 tons of bauxite were loaded into the Maritime Dignity vessel. Streets paving and construction of an ecumenical church commences. The 3.35 million tons bauxite production capacity is reached. Alternative Energy studies to dry bauxite commence.
1984
Shipments to the domestic market commenced in the first quarter; destination: Alumar Consortium, in São Luiz, State of Maranhão. Financing banks’ requirements for accepting the “Completion Test” strictly fulfilled, thus releasing the Sharehoders’ collaterals. Tailings superfine bauxite recovery process defined. Implementation of the alternative energy project using biomass in the bauxitedrying process in lieu of fuel oil commenced. Expansion of the 3.35 million ton installed capacity to 5.0 million ton bauxite production.
1985
Start-up of the fluidized bed hot-gas reactor driven by wood-chip burn to dry bauxite (February). New shipment record is achieved on 13 August when 56,490 tons of bauxite were loaded into the Victoria Peak Vessel. 130 additional houses, hospital, First Aid Post and other housing facilities for installation of Capitania dos Portos and other public bodies are finished.
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1986
Adequate signalization system to permit night navigation along the Trombetas River to commence. Arbitration process between MRN and foreign bauxite takers entered into. The 8.5 MW wood-chip burn thermal power generation to dry bauxite goes on stream. Construction of the Head-office, Main Gate, Cinema and Theater, Training and Cultural Center, Social Club and Trombeta Airport rollway asphalt paving is completed.
1987
Trombetas Airport Passengers’ station is concluded. Wood-chip-cut system to feed the 8.5 MW thermal power generation implemented.
1988
Six million ton bauxite production level is reached. On 9 June, the Belém Office Data Processing System, with modern equipment and satellite communication system is inaugurated. On 15 September, the bauxite sales contract between MRN and the foreign takers is signed, thus putting an end to the price arbitration legal action.
1989
DAC – “Diretoria de Aeronáutica Civil” (Civil Air Navigation Directorate) approves MRN’s airport adequate for Boeing 727 and 737-type airplanes to land and take off day and night. As from 27 November, tailings disposal into the Batata Lake is discontinued; this required transfer of the Washing Plant to the mine area and three years were required to have this project completed. On 27 December, the Brazilian President signed Decree 98,704 that created the “Floresta Nacional de Saracá-Taquera” (Saraca-Taquera National Forest), on the Trombetas region (429,600 hectares). Increase in the river draft from 32 to 35 feet is approved. Batata Lake rehabilitation project commences.
1990
Construction of the Sewage Treatment System commences. Bauxite production capacity goes up to 8,5 million tons per year.
1991
The Total Quality Program (TQP) is launched in MRN. Performance Evaluation and Bonus Plan, as well as Job and Salary Plan are implemented. 20 December – MRN’s equity structure is changed to include Alcoa as Shareholder and Trombetas Bauxite Taker to feed the Alumar Consortium alumina plant. Corporation Result Participation Policy is implemented.
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1992
Effective in March, Alcoa becomes MRN’s newest shareholder and this is of topmost significance for the future of the Company. On 11 March, the Total Quality Program (TQP) coordination structure is approved. In July, an accident with the shiploader caused by a cargo vessel interrupted shipments for ten days without driving the yearly program into jeopardy. Purchase of Cruz Alta 200 million ton bauxite deposits from Alcoa and Billiton at the price of US$ 17 million.
1993
MRN subscribes for 24.6% of ALUNORTE – Alumina do Norte do Brasil S/A’s equity. The Belém large size Data Processing System is replaced by AS 400 lower size units operating in the Porto Trombetas offices. The Supplemental Medical Assistance Plan – SMA is implemented.
1994
Basic engineering covering relocation of the mine crushing system already envisioning opening up of a second mine is concluded. Supplemental Retirement Plan (SRP) is implemented (December).
1995
The Board approves opening up of the second mine and relocation of the crushing system. US$ 87 million is the estimated investment to be disbursed over the next two years. May – the first wet bauxite cargo is shipped to Alunorte. MRN’s production capacity goes up to 9.6 million tons per year; this arose from operating improvements.
1996
The outstanding mark of 2.6 million men-hour worked with no lost-time accidents is achieved.
1997
July – The second bauxite mine goes on stream; approximately US$ 65 millions were invested in this undertaking.
1998
At the year-end, revegetation of the first tailings reservoir is completed; a total of 25 hectares were planted, hydroseeding being the adopted planting system.
1999
On 13 August MRN completes 20 years of commercial operations. Construction of the new thermal power station commences. The bauxite sales contracts signed in 1979, due to expire on 31.12.1999 are renewed for another 20 years’ period under the same terms and conditions.
2000
On 13 April, the Board approves MRN’s production expansion project to 16.3 million tons per year, the estimated investment being US$ 224 million. On 26 August, MRN Memorial House is inaugurated. Its purpose is to rescue MRN’s 33 years’ life history. On 6 October, ALUNORTE Alumina do Norte do Brasil S/A increases its capital stock by US$ 126 million, out of which MRN subscribes US$ 16 millions.
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