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The geological researchthat will transform Uruguay

Over 400 Uruguayan and foreign scientists, workers and technicians assessed iron ore deposits for an export project that will extend beyond the next 20 years.

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The mines will occupy 0.003% of the productive surface of the country

Zamin Ferrous has a solid portfolio of iron ore projects:

500 hectares Considering only the surface occupied by the mines to access the ore deposits, the �ve mines will comprise a total of around 500 hectares. This represents 0.003% of the productive surface of Uruguay. The whole mining complex, including waste dumps, manoeuvring and logistics areas, the tailings dam (where rock particles are decanted), the industrial bene�ciation plant, and the 8,577-hectare bu�ering zone, covers 14,500 hectares.

The strategy of the company is to identify projects that have received little investment from the mining industry in the past and to make strong investments in order to develop them.

A key aspect of Zamin Ferrous is that infrastructure, logistics and the marketing of the product must have the support of the communities and national governments.

GreystoneBahía

ZamapáAmapá

SusaRío Grande do Norte

Country's total production area

Steps completed

MUSD 170 investment in Research & Development

Conceptualstudy

Geological research

Pre-feasibilityStudy

De�nitive Feasibility Study

Next steps

MUSD 3,000 investment

ExecutiveProject Construction

Operation

Etapas cumplidas

USD 170 millones de inversión en investigación y desarrollo

Evalución de los recursosminerales

Investigación geológica

Estudio deprefactibilidad

Formulaciónintegral delproyecto

Estudiode�nitivo defatibilidad

Próximas etapas

USD 3.000 millones de inversión

Proyectoejecutivo Construcción

Operación

During four years we conducted the largest geological research in the history of Uruguay in the area of Cerro Chato and Valentines. This involved the extraction of 260 km of rock, around 6 cm in diameter, located up to 500 meters underground. We studied every inch and ounce of these samples in order to establish their detailed composition and the potential value of the resources.

Based on these findings, we have designed a productive, industrial and logistics project that guarantees the integral feasibility of the undertaking in multiple dimensions, among the most relevant: environmental, social, productive, financial and logistics aspects.

These are the priorities that underpin Aratirí´s project. These dimensions have been developed in four documents, which rely on geological knowledge and provide integral feasibility to the project:

• Definitive Feasibility Study (DFS), prepared jointly with SNC-Lavalin, completed in July 2011;

• Mining Project, prepared jointly with Coffey Mining, submitted to the Ministry of Industry, Energy and Mining (MIEM) in October, 2011;

• Export Terminal Project, prepared jointly with Ausenco Sandwell, submitted to the Ministry of Transport and Public Works (MTOP) in September, 2011, and

• Environmental and Social Impact Assessment (ESIA), prepared with the assistance of 150 Uruguayan and foreign companies, universities and consulting firms, and submitted to the Ministry of Housing, Territorial Order and the Environment (MVOTMA) in October 2011.

The knowledge generated both in the field and in the laboratory, together with the quality of a project conducted by the best professionals in the world, will enable an undertaking that Uruguay had considered for decades, without success.

The investment made by Aratirí, amounting to over MUSD 170, will make this project the initial step of a comprehensive process of sustainable development.

Pramod AgarwalFounderZamin Ferrous

Geological knowledge at the service of development

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Geology

Biology

Pale

onto

logy

Biophysics Biochemistry

Physical chemistryPhysics

Geop

hysic

s

Geochemistry

Chemistry

geo: earth – logy: study Geologists and technicians that participated in the research

Geology is the science that studies the composition and inner structure of Earth and the processes by which it evolves over time.

In modern times, geology is commercially important for mineral (mining) and hydrocarbon (oil and natural gas) exploration and for evaluating underground water resources (hydrogeology). It is also of fundamental importance in the prevention and understanding of natural hazards such as mass removal in general, earthquakes, tsunamis, volcanoes, among others.

It provides information for solving environmental problems and insights into past climate change. Moreover, it plays a significant role in geotechnical and civil engineering. It is a major academic discipline with several areas of research.

Applied geology consists in the use of geological knowledge and principles in the solution of actual problems in the areas of engineering, industry, agriculture and resource management.

Applied geology has experienced a strong growth lately driven by higher demand for natural

resources.

Geological science relies on several disciplines:

«Geology is a basic science dedicated to the study of

the earth, and is useful for finding mineral resources of

economic value, the existence of underground water and its

relation to soils and vegetation, determining

resistance levels for foundations, and

several other things. […] In most countries, mining

production has a low incidence in

the Gross Domestic Product, nevertheless, it is the

discipline that generates more jobs per million dollars

of production or per hectare.»

Dr. Jorge BossiGeología apoyando un país

productivo. Uruguay Ciencia, v. 5, pp.:22-24, 2008.

«The geological knowledge generated by Aratirí since 2007 has enabled thedevelopment of a project that the country had contemplated for decades. We now know that the deposits are a huge resource that, if managed with intergenerational responsibility, could drive strong growth for the countrythrough the diversification of the productive matrix. »Fernando Puntigliano Gerente general de Aratirí

1 Derick Helm

2 Ariel Nessi

3 Javier Draper

4 Patricio Salazar

5 Abigail Capeluto

6 Richard Lateulade

7 Valeria Arballo

8 José Burgos

9 Natalia Seluchi

10 Rodrigo Novo

11 Ana Clara Pereira

12 Hernán Vidal

13 Grey De Las Salas

14 Agustín Soto

15 Pablo Velázquez

16 Suman Aich

17 Damián Fork

18 Federico González

19 Gabriela Martínez

Not in the photographFrancisco Alba

Adolpho Augustin

Luis Bergalli

Helga Chulepin

Rolf Forster

Iván Garat

Arnold van der Heyden

David Holder

Merlin Marr Johnson

João Carlos Möller

Rupert Osborn

Walter Pereira

Robert Phillipps

Isabel Raszweski

Franklin Saltos

Henrri Sánchez

Simon Tapster

Fausto Villegas

Importance of geology

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1 2 3 4 5

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7 98 10 11 12 13

The study, detection and assessment of natural resources enable the management of the economic resources of a territory. Geological knowledge provides essential information for the economic, social and cultural development of a country.

Geology is starting to play a significant role in Uruguay´s development plans.

There is an increasing demand for geologists in scientific, productive and industrial projects. At present, there is practically full employment of Geology graduates and advanced students.

100 years of DinamigeThe National Board of Mining and Geology (Dinamige) will celebrate its 100 years in 2012. The Institute of Geology and Drilling, the predecessor of the current Dinamige , was created on October 22nd, 1912.

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27%Fe

69%Fe

2007-2011: From legend to reality

Since 1950, successive governments and various

companies havestudied the Valentines

deposits. In spite of this interest, the projects

were never implemented, perhaps because the

dimension of thedeposits was

underestimated, because of the lack of

public policies to enable them, or the lack of the

infrastructure and logistics solutions required for their

exploitation.

Aratirí discovered substantially larger depositsThe result was the discovery

of iron ore bodies several dozen times greater than any known deposits: suitable for

exploitation over a period of 20 to 30 years with large

productionvolumes.

Zamin Ferrous came to Uruguay searching for large iron ore deposits.In 2007 the company established its subsidiary in Uruguay - Aratirí - and obtained the

first approvals to study iron ore deposits in the area of Valentines in the central and eastern region of the country.

More technical and scientific resources.The objective of Aratirí was to apply the best technical and scientific resources to study the potential existence of iron ore deposits in a volume viable to be exported for steel production over several decades.

Five years after its arrival in Uruguay, and after intensemobilization of resources at the local, national, regionaland international level, the company has contributedengineering solutions and has confirmed the feasibilityof what will become the largest productive, industrialand logistics project in the history of Uruguay.

The first clues of the presence of iron in Valentines go back to colonial times. After that, at the beginning of the last century, several geologists detected the potential wealth existing underground: Marstrander (1916), Walther (1930), Mac Millan (1933), Serra (1944) Caorsi and Goñi (1957) and Alvarado (1959).

In the 50s, 60s, and 70s several foreign companies and successive Uruguayan governments researched the mineral resources of this area with a view to develop a mining and steel industry. The most recent explorations were conducted by the Geological Institute and the School of Chemistry (1957-1963), Bossi et al (1965, 1988), Bossi (1966, 1978, and 1988), the United Nations Development Programme (UNDP) (1976), Preciozzi et al (1985), Coronel (1987), Spoturno and Lara (1991) and Masquelin (2005), among others.

The target rock in the research conducted by Aratirí is the rock named «valentinesite» by doctor Bossi in 1963, as a homage to the area of Valentines. This rock contains a combination of minerals such as quartz, magnetite and pyroxene.

In 1965 the Commission of Research for Economic Development (CIDE) presented a bill for the exploitation of the Valentines deposits and the development of a steel industry.

Between 1972 and 1976 the UNDP provided assistance to the Uruguayan government through a study called «Assistance in mining exploration»

Diamond drilling and superficial level studies were performed by digging trenches across the mineralised areas.

The final report includes recommendations for the continuation of studies in order to establish the feasibility of beneficiation of the mineral, mapping to search for other mineral deposits, and the analysis of the logistics required for the transport of the material.

Technical and economic studies have shown that the percentage of iron (what geologists call “ore grade”) is lower than expected:

27%. In order to make the product commercially valuable, an industrial “beneficiation” process is required to increase the ore

grade to 69%.

Otherwise the ore is not adequate for the production of steel.

Both the volume and the quality of the mineral proved significantly greater than expected.

Metallurgic tests have shown that the final product obtained after the beneficiation process

meets international Premium quality standards.

As with any geological research, the first stages were uncertain. The plan provided for a controlled, phased prospecting campaign. At each stage, continuity of the campaign depended upon the findings in the field.

This was a high-risk investment, which sought to find more underground wealth than had been previously estimated by major companies, geologists and international organizations in several opportunities.

Geological studies have shown another key attribute, which differentiates this project from most mining undertakings

in the world: magnetite, the mineral found in Valentines, has magnetic properties that permit its separation from the

rock without using chemical products.

Moreover, specific logistics and infrastructure solutions have been designed to overcome the

shortcomings of Uruguay in these areas. Engineers, geologists, environmental scientists, economists and sociologists designed a project that includes five high voltage lines, an export terminal, a large

industrial plant, a slurry pipeline and a water pipeline to minimise the use of water.

Only 18% of the total investment will be dedicated to extraction and the logistics associated to the area

of the mines. The remaining 82% will be used for industrial, logistics and infrastructure needs in order

to make the project feasible.

The strategy of Zamin Ferrous investment group has proved fruitful: as with other projects in Brazil, the company applied

greater economic resources and knowledge to make feasible a project that other companies had ruled out.

The deposits of Valentines will finally be exploited in a safe, sustainable and environmentally responsible manner.

Iron with a history

«Valentinesite»

CIDE (1965) Exploitation of the Valentines deposits

UNDP (1976) Technical assessment of the Valentines deposits

Industrial process

Premium quality

Findings and investment

No chemicals

Infrastructure and logistics

More investment and knowledge

Both in Cerro Chato and Valentines there are families that have worked operating drilling machines for several generations. Photo: drillings CA 1975.

Jorge BOSSI. Recursos minerales del Uruguay. Colección Nuestra Tierra, Nº 10. Montevideo: Nuestra Tierra, 1969, 68 pp.

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2007 2008 2009

Total drillings (thousand meters)2008-2011

2008 2009 2010 20110

50

100

150

200

250

300

During four years of research, the studies

included the review of past research and geological

charts, aerial photographic studies, photographic

geological interpretation, mapping of the

mineralised area, the application of geological

and geophysical techniques, magnetic

survey ofthe area and drillings up to

a depth of 500 m.

The most important research of mineral resources in the history of Uruguay

Methodologies NationalitiesAll the methodologies employed comply with the internationally agreed standards established by the Joint Ore Reserves Committee (JORC) of Australia.

The project relies on the contributions of national and international geologists. The Uruguayan scientists and technicians, several of them with an environmental profile, were joined by other scientists from Australia, Brazil, Ecuador, United States, France, Italy, India, Ireland, Peru, United Kingdom, Malaysia, New Zealand, South Africa, Zimbabwe, etc.

Aratirí was incorporated in Uruguay and obtained the first prospection approvals.

Installation of the R&D&I testing and laboratory facilities in Valentines.

1,000 meters drilled each month.

July: The first surface magnetometric surveys were conducted, confirming the potential of the Valentines area for medium or large-scale mining exploitation.

October: Microsurvey Aerogeofísica & Consultoría Científica Ltda. (Brazil) conducted an airborne geophysical survey (gamma ray spectrometry and magnetic survey) over 3,000 square kilometres.

December: A new Sample Preparation Facility was built in the Valentines plant.Offices were set up in Cerro Chato.

September 2009 onwards: Dozens of information and

consultation meetings have been held at the local,

provincial and national level with neighbours, counterparts,

authorities and the general public.

A magnetic anomaly trend was identified extending from the locality of Las Palmas to Valentines.

November 2009 onwards: Iron ore samples have been sent to Australia, Argentina, Brazil, China and Peru to be analysed and processed in steel manufacturing laboratories.

December: The consulting firm SNC-Lavalin of Australia was selected to conduct a pre-feasibility study of the project.

Drillings provide insights into the 3D geology of a deposit, providing evidence and scientific data on the underground location of the mineral.

MUSD 170 260,000Aratirí invested MUSD 170 between 2006 and 2011 to produce geological data and in the productive, environmental, social and financial aspects of the project design.

The 260,000 meters of drilling, performed between 2008 and 2011, has proven the existence of mineral resources for exploitation in excess of 20 years.

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2010 2011

2010-2011: towards a great mining project

Between January and April: SNC-Lavalin completed the pre-feasibility study with the participation of several technical teams, consultants and experts from all over the world.

The project was found to be competitive in comparison with other similar projects in various parts of the world.

September: A methodology denominated Davis Tube Recovery was introduced in the Valentines plant as the main testing technique to assess the deposits.

Between September 2010 and March 2011: Drilling works were increased to 17,000 meters per month. Geological, physical and chemical tests of the materials extracted increased accordingly.

Logistics challenges forced the incorporation of management structures specialized in this field.Work was increased to 24 hours per day, seven days a week, with the agreement and under the coordination of the Ministry of Work and Social Security (MTSS) and the National Metal Workers Union (UNTMRA).

13 drilling machines were used, under the direction of 10 geologists. During some periods, up to 15 drilling machines were used.

Other 10 geologists were dedicated to geological interpretation and description, mapping, modelling, databases and specialized studies.

Davis Tube recovery is employed to separate magnetite from the material contained in the rock through magnetic means. In order to apply this technique, rock needs to be crushed into particles of 110 microns or less.

These facilities are currently being used to analyse samples from other Zamin deposits in Brazil and Bolivia.

1,500 1,500 direct and permanent jobs will be created during the period (20 to 30 years).

Between May 2010 and July 2011: SNC-Lavalin completed the Definitive Feasibility Study, (DFS) including specific geotechnical, hydrogeology and mining engineering studies. Geological research provided reliable and detailed data for the preparation of the DFS.

The pace of the research tasks peaked. Sufficient technical and scientific resources were used to allow for the planning of large-scale mining exploitation: 18 million tonnes of iron ore concentrate per year.

A 3D model was developed for the deposits. This permitted to identify the lithological rock types in the subsoil and the iron content of every meter drilled.

The baseline studies required to document the environmental status prior to the project started in 2009 and were repeated in 2010 and 2011.

In October 2011 the submission of the ESIA was completed.

310 Safety measures adopted by the Valentines Projects have permitted to attain all-time records in this area. The longest period without work accidents was 310 days.

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Geological research in the area

With the help of geological interpretation and enlarged aerial photographs, teams of

geologists assessed the terrain to identify every rock outcrop. A detailed geological map of the surface was completed for the

zones with potential mineral value.

Most of the operators that performed the drillings were rural workers recruited from the local population.

Field tests and sample testing to determine underground water quality. The data collected will help determine a baseline for measuring the environmental performance of the project.

Trenching performed in Apretado hill by the UNDP in 1975.

Once mining operations start, current water quality levels must

be ensured and proven.

The programme for the regeneration of natural habitats addresses special environmentally sensitive areas or areas that have

been under pressure due to agricultural production activities.

Drilling work was undertaken on a 24-hour, seven-day basis, using up to 15 drilling machines. Diamond drilling was performed up to a depth of 500 m.

37 national and foreign, women and men

geologists and technicians participated in the

research.Geological prospection

and exploration lasted four years. The most advanced technologies were used to

study the subsoil.

Two types of drillings were performed: diamond drilling, extracting continuous rock cores, and inverse circulation, by crushing the

rock and extracting fragmented samples.

Environmental baseline studies conducted since 2009 include all the dimensions where future mining operations must guarantee the minimisation of environmental impacts.

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Once the industrial process is completed, the Valentines magnetite will have iron concentration in excess of 69% by mass and will be low in phosphorus, aluminium, titanium and silica.

The cores extracted through diamond drilling are stored in a lithological collection facility, which currently holds 160 linear km of labelled and tested samples. The rock extracted using reverse circulation drilling is stored in a separate warehouse and represents an additional 100 km of samples. 

Preparation of cores (samples) in the sample preparation facility.

In order to obtain a higher quality product and allow pumping through the slurry pipeline, the ore particles must be reduced to a size of 45 microns. This process is performed through crushing and milling.

Survey of magnetic susceptibility, and lithological (rock type), mineralogy and geotechnical (rock structure) description of

each sample extracted thorough drilling.

The Davis Tube is employed to perform laboratory tests through magnetic separation

of the iron ore (magnetite). This technology uses electromagnets. Testwork has confirmed 95%

recovery of the material.

Laboratories from numerous steel manufacturers have examined the samples and rated them as Premium quality. This

product is used by 18% of the world´s steel producers.

Rigorous geological exploration and

interpretation underpin all subsequent engineering

projects: the design of the mines, beneficiation plant,

slurry pipeline and water pipeline, etc.

Drilling and remediationGeological data collection

Remedial work to ensure land restoration after drilling. The land is restored to pre-existing conditions, with the aim of

promoting the rapid development of the vegetation cover in bare soil and preventing erosion.

Drilling sealed and identified with depth and inclination data and

pit number.

Geological laboratory research

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Initial project investment

Bene�ciation Plant

Mining Complex

Slurry and Return Water Pipelines

Export Terminal

Infrastructurenext to mines

High Voltage Lines

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3

54

0 1 2 3 40,5Kilómetros

Las Palmas

Cerro Chato

Valentines

C E R R O L A R G O

D U R A Z N O

F L O R I D A

TREINTA

Y

TRESSlurry

Water pipeline

Mine

Waste dump

Stockpiling

Water storage

Tailings storage

Bene�ciationplant

Ruta

7

Ruta 19

N

A productive, industrial and logistics project

A productive, industrial and logistics project that includes, in addition to mining extraction, investments to build a beneficiation plant, a concentrate slurry pipeline and return water pipeline, high voltage power lines and a deep-water export terminal.

Once completed, the mines will have the following depths: 1. Las Palmas: 380 m2. Maidana: 300 m3. Uría: 350 m4. Morochos: 350 m5. Mulero: 200 m

The Valentines Project of Minera Aratirí for the

export of iron ore will diversify the productive

matrix of Uruguay by introducing a new export,

as important as meat or tourism, without affecting

existing exports.

• It was designed to produce and export around 18 million tonnes of iron ore concentrate per year, for a period of 20-30 years.

• Exports will reach an annual average of MUSD 1,400, positioning Uruguay as one of the largest world producers of iron ore for steel manufacturing.

• It will be the largest direct foreign investment in the history of Uruguay. According to the DFS performed by the company SNC-Lavalin, the initial investment required for the project amounts to MUSD 3,000.

• The intense mobilization of resources (employment, capital, technology, infrastructure, knowledge) will boost the creation of new, complementary and synergic development clusters in a region that currently drives out manpower.

The mining complex comprises the mine area, associated infrastructure and an industrial plant where the mineral will be processed to obtain a high quality and high purity iron ore concentrate. The iron content will be increased from 27% to 69% at the industrial plant. This process is required to make the iron ore exportable

The mining complex extends along the border of the provinces of Durazno, Florida and Treinta y Tres, with the locality of Cerro Chato at its centre.

The maximum area occupied by these five mines will be of around 500 hectares. This represents 0.003% of the productive surface of Uruguay.

The whole mining complex, including the mine area, the tailings dam (where rock particles are decanted), buffering zones (additional areas reserved only for minimising impacts) and the industrial beneficiation plant, will cover 14,500 hectares. It comprises 197 lots, owned by 82 producers.

Buffering zones, which occupy 8,577 hectares, are an additional protection requested by the company to minimise impacts. The project provides for the establishment of a minimum distance of 1,000 m from the outer border of the mines and 200 m from all facilities, including roads, warehouses or buildings.

Waste rock will be carried by water to the tailings dam, a body of water that, in its final development, will occupy approximately 2,500 hectares, where the water will be decanted and returned for the process.

Water will be managed in a closed circuit, comprised of a tailings dam, a return water pond, a filtration plant at the export terminal and a return water pipeline. This system permits recycling and significantly reduces the amount of water consumed in the process.

The Valentines Project combines sizeable investments in mining, industry and logistics for the construction of:

Extraction will be performed in five open-pit mines and will involve drilling and removal of soil in the form of a deep pit.

1

2

3 4

5

1. Five mines and associated logistics facilities;

2. An industrial processing and beneficiation plant;

3. A 212 km concentrate slurry pipeline and return water pipeline;

4. An export terminal (a docking platform located 2.5 km off the coast);

5. Five high voltage power lines that will improve the availability and stability of power supply in the eastern region of the country.

Mining complex

The largest direct foreign investment

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Avoid Prevent Mitigate Correct Compensate

2009 2010 2011 2012 2013 2014 2015 2016

Design400 employees

Construction3,000 employees with peaks of 4,000

Operations1,500 employees

MUSD 3,2 MUSD 681

The highest environmental protection standards

Based on the ESIA, it may be safely asserted that, once the proposed prevention, mitigation and compensation measures are in place there will be no significant environmental impacts.

In line with national environmental policies, each one of the project components has been designed prioritising the prevention of adverse environmental effects from the activities.

Protection of the environment is a priority as dictated not only by the operational culture of Aratirí, but also by Uruguayan environmental legislation.

Environmental management tools permit to act proactively on environmental impacts.

These tools are applied in the following order of priority.

The Valentines Project relies on the concept of responsible mining, with the use of cutting-edge technology and the supervision of the world’s best professionals in the field. This concept is based on the principles of sustainable development, equity, participatory decision-making, responsibility and transparency, prevention, efficiency and legal and economic responsibility. Responsible mining projects develop plans from the first stages of mining operations to environmental management, social management and corporate social responsibility plans.

No significant footprint

Prevention, mitigation and compensation

Environmental prevention and protection are the priorities

Environmental management tools

Responsible mining

Main economic and social impacts

Economic compensation in the form of surface rights fees will greatly exceed any income from cattle breeding, forestry, and agricultural activities.

Pursuant to the provisions of the Mining Code, the surface rights fees to be distributed among landowners amount to 2% of FOB exported value, around MUSD 28 per year. In the areas adjacent to the mining facilities, not covered by surface rights or easement fees, there will be no changes in land and soil use generated directly by mining activities, and current cattle breeding and agricultural activities will not be affected or displaced.

Under Uruguayan law, the owners of the land associated to the route of the slurry and water pipeline will receive an economic compensation from the company in the form of easement fees throughout the lifecycle of theproject.

Benefits for local producers

Under proper government control, mining exploitation can warrant the protection of the environment. Under Uruguayan legislation, (prior and operational) environmental permits are required, and should be renewed every three years. Environmental permit renewals require, each time, the review and update of environmental management plans. Moreover, monitoring is conducted on an on-going basis. All this ensures that any alteration of the environment will be in accordance with current environmental legislation and the relevant provisions of the environmental authorities.

On-going environmental monitoring and control

The Aratirí Project has created engineering, process and logistics solutions geared to avoiding or minimising the environmental footprint.

Moreover, the project proposes management, mitigation and compensation measures to offset any unavoidable adverse impacts.

All this information is contained in the ESIA submitted to the MVOTMA, where the solutions and the measures proposed are evaluated.

•Ironoreexportswillposition Uruguay among the major world exporters of high quality iron ore for the manufacturing of steel.

•Exports:betweenMUSD1,200 and MUSD 1,900. Annual average: MUSD 1,400.

According to a study conducted by Vixion Consultores, 10,500 indirect jobs will be created.

During the construction phase, 3,000 workers will be employed directly, with peaks of up to 4,000 workers. In the operation phase, Aratirí will employ 1,500 workers directly.

•Afterfiveyearsofoperations, 95% of the workforce employed will be Uruguayan.

The Local Employment Programme seeks to benefit the residents of the influence areas of the project.

•Inthezoneof influence of the project, contribution to GDP will increase from MUSD 3.2 per year to MUSD 681 per year.

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Local development and social investment programme

It introduces social responsibility guidelines for the Project. It includes ‘seed’ loans to promote the development of small local businesses. It will encourage the generation of knowledge, the development of research centres and the promotion of partnerships between universities and the productive area.

Local employment programme

It seeks to manage the employment requirements of the project so as to generate bene�-ts to the area of social in�uence, avoiding negative impacts. The policy is to prioritize local and regional employment.

Local procurement programme

It seeks to activate the local, regional and national economy in a sustainable manner by creating supply chains to cater project needs.

Participatory environmental management programme

It seeks to positively involve society in the project’s environmental management programme. An open policy in regards with information management will facilitate the participation and control of society in an organized manner.

Land access and purchase programme

It describes the legal mechanisms to access the a�ected lands, avoiding negative impacts and providing the families with better opportunities.

Communication and consultation programme

It seeks to establish mechanisms that guarantee the transparency and good practices of the Project. Likewise, it focuses on building two-way communication channels ensuring society access to information related to the Project, while responding to their concerns.

Claims processing programme

It is a tool to receive and answer public queries, concerns and communication requests from the community or other stakeholders. This process will be systematic and documented.

Social closure programme

It states the measures planned to accompany and re-direct social stakeholders in the pre-closure stages of the mine. Closure is planned since the beginning of operations so as to promote the development of alternative productive activities.

Local

Regional

National

International

Aratirí has implemented a series of programmes aiming at reinforcingthe social and environmental sustainability of the Valentines Project.

Social managementsystem

Management of social impacts

Land access

Social closure

Local employment

Local procurement

Local development and social investment

Participatory environmental management

Claims processing

Communication and consultation

Generation of bene�ts

Involvement of social actors

Approvals

Studies

Construction

Operation

Prior EnvironmentalApproval (PEA)

1st Environmental Approval of Operations (EAO)

2nd Environmental Approval of Operations (EAO)

Base-line studies

Social and environmental impact studies

Environmental Impact Assessment Manifesto and public hearings

Environmental Management PlanClosure plan

Veri�cation of conditions

Environmental approval review every 3 years

Veri�cation of conditions

PEA EAO

Social management programmes

With the aim of reinforcing the community and social

integration philosophy and obtaining positive social

results to accompany development, a series of programmes have been

designed to guarantee the social and environmental

sustainability of the Valentines Projects.

Social and Environmental Impact Assessment

The Social and Environmental Impact Assessment (SEIA) was led by Aratirí with the assistance of a team of 150 national and foreign consultants, from the following institutions and companies, among others:

The studies were conducted applying criteria defined by the International Financial Corporation, part of the World Bank Group.

The SEIA is the base document that initiates an iterative process of consultation and adjustments with the National Environment Board (Dinama) of the MVOTMA.

The process includes Public Hearings, where citizens can ask questions and express concerns.

Ausenco VectorBurson & MarstellerCIFRA González Raga y AsociadosCSI IngenierosEcoMetrixEcotechIGS Ingesur SRLInduserLATUMaxxam AnalyticsODITSocial Capital Group

Tres EscalasUniversidad CatólicaUniversity of the Republic School of Engineering Institute of Fluid Mechanics and Environmental Engineering School of Sciences Institute of Geological Science Basin Evolution DepartmentSchool of Medicine Hospital de Clínicas Occupational Health DepartmentVixion Consultores

What is the process for obtaining environmental approvals?

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ZamapáBrazil

Greystone Brazil

SusaBrazil

Valentines Uruguay

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AratiríAratirí is a company created by the Zamin Ferrous group, dedicated to prospection, exploration, extraction, beneficiation and exportation of iron ore in Uruguay. The company has a high level of commitment towards society and the environment, mainly with those directly involved in the project, not only the workers, but also the inhabitants of the area.

www.aratiri.com.uy

Zamin FerrousZamin Ferrous is an independent mining group registered in Jersey with offices in Sao Paulo (Brazil), Montevideo (Uruguay) and Dubai (Arab Emirates) and representative offices in London (UK) and Zug (Switzerland).

Zamin has a strong portfolio of iron ore projects in Latin America: Zamapá (Amapá, Brazil), Susa (Rio Grande do Norte, Brazil), Greystone (Bahía, Brazil) and Valentines (Uruguay). In 2010 it developed and sold the second 50% of the Bamin Project (in Bahia, Brazil) in MUSD 735.

The company´s strategy is to identify large assets with major infrastructure requirements that other major companies have ignored in the past, and make important investments to develop them further. A key aspect of Zamin Ferrous is that infrastructure, logistics and marketing of the product must have the support of communities and national governments.

www.zamin.com

Photo credits

Carlos Contrera

Cover; page 4;

Pp. 8 - 11:

Luis Camacho

Pp. 8 - 11:

Pp 12 - 15: Pp. 12 - 15:

Page 19.

Reference technical studies

EnvironmentEnvironmental and Social Impact Assessment, including baseline and environmental impact studies on water, air, landscape and continental biology, among others

CommunityBaseline socioeconomic studySocioeconomic impact assessmentSocial management planApplication of prospective techniquesProductive activity study

Mining complexAssessment of depositsGeotechnical research of minesMine design including:Mine pit optimisation studyMine pit designWaste and raw material stockpiling platform designMining planning:Mining production programmeExplosive supply reportDiesel vs. electric mining machinery study Drilling and blasting optimisation studyMineral ore grade control study Lubricant and fuel supply reportHydrogeological studies including:Stream diversionWater balanceMine drainageNumeric modellingStudy of mine pit bench heightOre dilutionMining equipment quotation assessment reportFleet management system evaluation reportMine infrastructureTyre supply evaluation reportTyre servicing evaluation reportCrusher input curve reportTopographic survey of the mine zone

Industrial beneficiation plantGeotechnical civil studiesTopographic surveyMetallurgical testwork programme including, among others:Compound preparationSample preparationQUEMSCAN mineralogical studies (quantitative assessment of minerals through scanning)Crushing indexesBond abrasion testDetermination of apparent relative densityDetermination of specific gravityStratification or screen separation studyWifley concentrating tableMilling indices (Bond ball and rod mill)

Davis Tube recovery testsLow intensity magnetic separation for wet media (LIMS) High intensity magnetic separation for wet media (WHIMS) Jar mill testVariability assessment programmeMagnetite concentrate and management characteristics testwork programmeConcentrate and barren material settling tests for the design of concentrate thickeningMagnetite concentrate filtration testwork

Concentrate slurry pipeline and return water pipelineStudy of optimisation of the concentrate slurry pipeline and water pipelineAerial survey of the slurry pipeline and water pipeline route Geotechnical assessment of the slurry and water pipeline routeRheology studiesLaboratory report of the mix of ore concentrate and waterCorrosion testingWater and ore concentrate mix pumping testingAbrasion and corrosion testingWater quality test

MarineSetup of meteorological stations for site data survey Onshore topographic site reconnaissance Onshore geotechnical civil researchMarine geotechnical civil research for the Ocean studies:Bathymetric surveySediment studyMarine subsoil sonar scan ADCP (acoustic doppler current profiler): water levels, wave and current patternsWave transformation assessmentDredged channel depth studyStudy of supply of materials for the breakwaterBreakwater rock studyOperation simulation studyManoeuvre simulation study

Other studiesSand and other materials studyLogistics studyPower supply assessmentStudy of construction of medium voltage lines for power supply Conveyor assessmentMathematical model of entire operationAvailability and evaluation of Uruguayan suppliersAvailability and evaluation of Mercosur suppliersOccupational Health assessment

J u n c a l 1 3 8 5C . P . 1 1 0 0 0 - M o n t e v i d e o - U r u g u a y

P h o n e : + 5 9 8 2 9 1 6 6 1 3 8w w w . a r a t i r i . c o m . u y

Acuerdo unánime: partidos políticos y gobierno nacionalEn agosto de 2011 el Presidente de la República convocó a una comisión multipartidaria con el objetivo de dotar al país de una política de Estado para los grandes proyectos mineros. Esta comisión, integrada con representantes de los cuatro partidos políticos con representación parlamentaria y el Poder Ejecutivo, sesionó entre agosto y diciembre de 2011. El acuerdo alcanzado de�ne un marco estratégico y político para el desarrollo de la “Minería de Gran Porte” en Uruguay.

El capítulo ambiental del acuerdo a�rma: “La Minería de Gran Porte es aceptable y genera proceso de desarrollo sostenible si respeta las reglas y garantías rigurosas de gestión ambiental durante todo el proceso, incluyendo cierre y post-cierre. Existe en el país un marco legal amplio, moderno y adecuado que da garantías (ambiental, minero, de ordenamiento territorial y gestión del agua).”

This 22nd day of December, 2011, the undersigned hereby subscribe these presents:

By the Executive Power

By the Colorado Party

By the Independent Party By the Frente Amplio Party

By the National Party

J u n c a l 1 3 8 5C . P . 1 1 0 0 0 - M o n t e v i d e o - U r u g u a y

P h o n e : + 5 9 8 2 9 1 6 6 1 3 8w w w . a r a t i r i . c o m . u y

Acuerdo unánime: partidos políticos y gobierno nacionalEn agosto de 2011 el Presidente de la República convocó a una comisión multipartidaria con el objetivo de dotar al país de una política de Estado para los grandes proyectos mineros. Esta comisión, integrada con representantes de los cuatro partidos políticos con representación parlamentaria y el Poder Ejecutivo, sesionó entre agosto y diciembre de 2011. El acuerdo alcanzado de�ne un marco estratégico y político para el desarrollo de la “Minería de Gran Porte” en Uruguay.

El capítulo ambiental del acuerdo a�rma: “La Minería de Gran Porte es aceptable y genera proceso de desarrollo sostenible si respeta las reglas y garantías rigurosas de gestión ambiental durante todo el proceso, incluyendo cierre y post-cierre. Existe en el país un marco legal amplio, moderno y adecuado que da garantías (ambiental, minero, de ordenamiento territorial y gestión del agua).”

This 22nd day of December, 2011, the undersigned hereby subscribe these presents:

By the Executive Power

By the Colorado Party

By the Independent Party By the Frente Amplio Party

By the National Party

On August 2011, the President of the Republic convened a multi-party commission with the aim of providing the country with a State policy for large mining projects. This commission, composed by representatives of the four political parties with Parliamentary representation and the Executive Power between August and December, 2011. The agreement reached defines a strategic framework for the development of «large mining undertakings» in Uruguay.

The social chapter of the agreement includes, among other measures:Create a tripartite Sectorial Council on Mining to promote the Productive Chain, define objectives, actions and a roadmap.

The governance chapter of the agreement includes, among other measures:With the aim of guaranteeing intergenerational solidarity, a SOVEREIGN INVESTMENT FUND will be created using the tax income obtained by the State from land use and easement fees, company income tax (IRAE), dividend tax, and additional company income tax (IRAE) of large mining undertakings. Any profit generated by the investments of the fund will be an integral part thereof.

Tripartite Sectorial Council and Sovereign Investment FundUnanimous agreement