Research Authorization License

A legal entitlement awarded by the DNPM allowing its holder to perform works required for the definition of mineral deposit, its evaluation and the determination of the feasibility of its economic exploitation.

Refining [Beneficiamento]

A treatment aiming to prepare granulometrically, to concentrate or to purge through physical or chemical methods, with no alteration of the chemical constitution of the minerals.

Coke or Cokable Carbon

Bituminous (bituminous coal) with a high carbon level allowing the production of proper coke for supporting a high-furnace load. Normally used in coke furnaces for metallurgical purposes, such as the production of Pig Iron.

Thermal Carbon

Natural carbon prepared for use in thermal electric plants for the production of vapor/steam.

Vegetal Carbon

A substance obtained through the carbonization of wood, timber or forest residue.

Concentration

An industrial process based on physical, chemical or biological treatment for increasing the concentration of a given substance in an ore (in large amounts), so as to increase the level of the element of interest in the desired mineral.

Carving Concession, or Right of Carving [Lavra]

A mining right having as an entitlement an Ordinance  signed by the Federal Minister of Mines and Energy (or otherwise, as set forth in ruling legislation on the occasion when such right was constituted), which permits the industrial exploitation of the deposit, from the extraction of the useful mineral substances it may contain up to their Refining

DRI steel [Ferro Esponja]

Iron ore, granulated or in pellets, converted by the Direct Reduction process, used mainly as a substitute for scrap in high furnace steel manufacturing. Also known by its English acronym, DRI (Directly Reduced Iron).

Pig Iron [Ferro-Gusa]

A by-product of iron ore, produced in high furnaces, with the addition of coke or vegetal carbon, used in steel manufacturing.

Iron Alloy [Ferro-Liga]

Alloys containing iron ore in conjunction with one or more chemical elements, used in steel manufacture. The main Iron Alloys are chromium, manganese and silicon.

Ferrovanadium

A by-product of iron ore, used in the manufacture of highly resistant special steels.

Fine Items

Iron ore with particle diameters below 6.35mm and above 0.15mm. which are appropriate for synthesization. When participle dimensions are  below 0.074mm, this iron ore is appropriate for pelletization (see Ultra-Fine Items).

High-Furnace Granulated Items

Iron ore with particle sizes ranging from 6.35mm to 50.00mm in diameter, with chemical and metallurgical characteristics which allow  for direct loading into the high furnace.

Carving [Lavra]

A set of coordinated operations aiming at the industrial exploitation of the deposit, from the extraction of the useful mineral substances it may contain up to their Refining.

Mine

The deposit undergoing carving registered with the Ministry of Mines and Energy, or another official body, which has a significant economic value and high enough demand to render the enterprise viable.

Pellets

A product formed from ultra-fine iron ore particles, agglomerated and sized between 8mm and 18mm, with a quality that’s appropriate for  iron oxide reduction into metallic iron (pig iron or DRI steel).

Pellet Feed

A fine ore for pelletization.

Refining Plant

An industrial facility where Refining is performed.

Recovery Percentage upon Refining

Percentage showing the amount of metal recovered from the processed ore in the Refining Plant.

Direct Reduction

A process that removes oxygen from iron ore without fusion.

Mineral Resource, or simply “Resource” [Recurso Mineral or Recurso]

Concentration or occurrence of material with an intrinsic economic value, under or over the surface of the ground, featuring shape, quality and quantity which allow for reasonable prospection for possible economic extraction. The location, quantity, content , geological characteristics and continuity of the Resource are known, estimated or interpreted on the basis of evidence and specific geological knowledge.. Resources are subdivided into the following categories: Inferred, Indicated and Measured, according to their geological reliability.

Indicated Resources

Inferred Resource

A portion of the Mineral Resource whose mass and content  may be estimated with low reliability. Resources become inferred  on the basis of geological evidence, but not verified as to their geological or content level continuity. They are based on information obtained through techniques appropriate for locations with outcrops, trenches, wells/pits or drill holes of uncertain quality or reliability.

Measured Resource

A portion of the Resource whose mass, density, shape, physical characteristics, level  and mineral content may be estimated with a reasonable degree of reliability. The Measured Resource are based on detailed and reliable information from exploration , sampling, and lab testing obtained  through techniques appropriate for locations such as outcrops, trenches, wells/pits and drill holes. Such locations have close enough spacing to confirm their geological and content continuity.

The sum of Inferred, Indicated and Measured Resources.

Materials which are disassembled and commercially unused in a given operation. These include Carving steriles (materials which have not undergone Refining) and the rejects of Refining.

A resource available for Carving, of mineral or fossil substance, estimated for research, which crops out to the surface or exists underground with shape, quality and quantity of a proven viability for economic extraction.

An economic, mineral portion of the Measured Mineral Reserve demonstrated in the preliminary viability study. Such a study should include accurate information on mining, processing, metallurgy, and economy, in addition to other relevant factors showing and justifying the economic extraction on the occasion when the report is made

A reserve whose physical and chemical properties, exploratory technology and conditions for carving of the mineral asset are adaptable to industrial usage and profitable commercialization. The Mineral Reserve is subdivided so as to enhance the certainty of Probable Reserves and Proven Reserves.  Probable Reserves are characterized by a lower degree of certainty than Proven Reserves.

An economic, mineral portion of the Indicated Resource, and in certain circumstances also of the Measured Resource demonstrated by at least one preliminary viability study. Such a study should include accurate information on mining, processing, metallurgy, and economy, in addition to other relevant factors showing and justifying the economic extraction on the occasion when the report is made.

Sum of the Proven and Probable Reserves.

Agglomeration of the melting iron ore through the burning of carbon particles

Ultra-fine iron ore particles, with less than 0.074mm, generated by  carving, refining and handling.