Ero Copper Corp has provided a construction update for the Tucumã Project, highlighting significant progress since October 2023. With physical completion now at over 85% and production of copper concentrate scheduled to commence in H2 2024, the company has initiated the transition from construction to commissioning, as outlined below in the 2024 commissioning plan.
The project is expected to produce 326,000 t of copper over an initial mine life of 12 years and is located within the Carajás Mineral Province, southeastern Pará State, Brazil.
The main substation and e-houses have now been installed and commissioned with a 16 km power line tie-in to the national grid completed ahead of schedule; this line is expected to be fully energised by the 20th of January. Mining wise, pre-stripping activities are tracking approximately 10% ahead of schedule with completion now expected at the end of Q1 2024. To date, approximately 3,200 t of sulphide ore have been placed on the run-of-mine stockpile for process plant commissioning.
Moving to the plant, mechanical completion testing and sub-component commissioning have commenced for key pieces of processing equipment including the primary crusher, ball mill, secondary and tertiary crushers, vibrating screen decks and flotation cells. The remaining steel structures, plate work and mechanical equipment installations are tracking on or ahead of schedule. Construction activities through the remainder of Q1 2024 will focus on completing piping, electric cabling, automation and instrumentation system installations.
Looking at expected commissioning milestones in advance of first concentrate production in H2 2024, they include by the end of Q1 2024 mechanical completion and sub-component commissioning (lubrication, hydraulic, electrical, instrumentation and automation systems). In March 2024 there should be first ore through the crushing circuit comprised of primary and secondary crushers as well as screening and conveyance systems. April 2024 will see first ore through the milling circuit; and May 2024 the first ore through the regrind mill circuit, concentrate and tailings filtering systems. Finally June 2024 will see integrated commissioning with flotation circuit and project ramp-up.
On the workforce there has been an opportunistic increase in construction workforce mobilisation. The recent demobilisation of a Brazilian mining project has allowed the company to add approximately 500 trained contractors on site, increasing the total workforce of employees and contractors to approximately 2,220 people. To date, there have been no lost-time injuries on the project, with over three million hours of work completed since 2022.
Direct project capital expenditures have been updated to approximately $310 million (compared to the previous estimate of $305 million) to reflect the impact of a stronger Brazilian real against the US dollar in Q4 2023, which was partially offset by reduced stripping costs.
“As we transition from construction to commissioning, the paramount achievement at Tucumã is the outstanding safety performance of our construction team. Marking a significant milestone, we have surpassed three million hours of work without a lost time incident. I extend my heartfelt congratulations to our Project leadership team, as well as the 2,200 employees and contractors on site, for their continued diligence and thoughtful execution in advancing Tucumã towards production,” said David Strang, Chief Executive Officer.
He adds: “This is an exciting phase for Ero Copper as we prepare to bring Tucumã into operation later this year and anticipate consolidated copper production reaching over 100,000 tonnes in 2025. With the recent shift in copper supply-demand fundamentals signaling supply deficits in 2024 and 2025, the timing of our growth trajectory couldn’t be better.”
