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Brazil : CPRM and Perth Resources Minerals sign mining contract bid by PPI

Publish Date : 26-Feb-2020

The ceremony that marked the signing of the contract was held on Wednesday (19/2), at the Ministry of Mines Energy (MME), in Braslia. The event brought together representatives of the Federal Government, the winning company, the mining sector, parliamentarians from Tocantins and the city of Palmeiropolis. Perth Resources Minerals offered 1.71% in royalties on gross revenue, in the production phase, in addition to R $ 15 million in bonuses, which will be paid in three installments: R $ 1.5 million on signing the contract, R $ 6 million during the survey period and R $ 7.5 million in the mining concession. In investments, more than R $ 255 million is expected, in addition to the expectation of generating 2,500 jobs. This is the first mining project contract under the Investment Partnerships Program (PPI), which offered the private sector mining rights for the Polymetallic Complex of Palmeirpolis (TO).

CPRM's CEO, Esteves Colnago, thanked the support he has received from the Minister of Mines and Energy, Bento Albuquerque, to bid on the institution's assets and attract new investments to the sector. Colnago also recognized the role of CPRM employees, who, since the discovery of the mineral deposit - in the 1970s - until their geological reevaluation for the auction, showed unparalleled professionalism. Mineral activity is a source of social development. By generating quality jobs, increasing income and collecting taxes, the production of new mining projects translates as essential to the country's economic and social growth, he said.

The CEO also said that CPRM will continue to offer its portfolio of areas to private activity, in order to leverage new investments for the Brazilian mineral sector. Colnago recalled that the institution holds about 330 mining rights, divided into 30 blocks. We already have four other projects qualified in PPI and that will be bid on later this year: coal from Candiota (RS), copper from Bom Jardim (GO), Miriri phosphate (PB / PE) and Caulim do Rio Capim (PA) , warned.

The polymetallic deposit in Palmeirpolis contains more than one element in quantities for economic use - such as zinc, copper, lead and gold - and comprises six mining processes, totaling 6,050 ha, all with final research reports approved by the National Mining Agency (ANM). The deputy secretary of Geology, Mining and Mineral Transformation of the MME, Lilia Mascarenhas Santagostinho, who represented the minister Bento Albuquerque, said that the signing of the contract concretizes the government's actions to unlock the sector, attract investments and put mining at the base of the country's development.

Mrcio Jos Remdio, new director of Geology and Mineral Resources at CPRM, agrees with the assessment of the assistant secretary. The availability of assets is an important step for the Geological Service and also for the Brazilian mineral sector. We will endeavor to bid on the entire CPRM asset portfolio through PPI. This means more research, regional development and jobs, he said.

The vice-governor of Tocantins, Wanderlei Barbosa, acknowledged the Federal Government's efforts to make the bid viable. We need attitudes like this to take advantage of the wealth of the Tocantins subsoil and generate job opportunities. This is a historic moment for our state , celebrated Barbosa.

Robson Enas de Oliveira, from the Secretariat of the Investment Partnerships Program, said that the signing of the contract shows the importance of the PPI in supporting Brazilian ministries and agencies to make investments happen. "I thank the investor, the Australian company, for trusting the Brazilian government, the MME, which has always supported and sponsored this process, and CPRM", concluded Eneas.

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