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The company said the milestone was reached within budget.
The first cargo of more than 80,000 tonnes of iron ore for the pellet feed market has been loaded onto a chartered vessel at the dedicated export terminal at the port of Acu in Rio de Janeiro state and the vessel is currently on its way to customers in China.
Anglo CEO Mark Cutifani said delivering FOOS from Minas-Rio was a remarkable achievement and one of three major commitments to shareholders this year.
“Minas-Rio has an exceptional resource in terms of scale and ore quality, producing some of the highest quality pellet feed available for our customers across the Middle East and Asia, providing us with a clear competitive advantage,” he said.
“We believe that the outlook for our particular premium product remains attractive, despite the current weakness in the iron ore price, and that the fully integrated operation of Minas-Rio – from mine to port – will enable us to sustain our low operating cost position over the long term.”
Minas-Rio in Minas Gerais comprises an open pit mine, beneficiation plant and a 529km slurry pipeline – the longest in the world – to the port of Acu.
The mine will ramp up to produce 26.5 million tonnes per annum of pellet feed at around 68% iron over the next 18-20 months.
Last year Anglo posted a $4 billion write-down on Minas-Rio as the costs and timeline blew out.
In 2008, the company flagged capital costs of $2.3 billion and first production in 2011, figures that kept being revised.
At the peak of construction, the project employed more than 20,000 workers and will require 4000 workers for steady state operations.
Minas-Rio currently has a 28-year mine life.
Last week, Moody’s Investors Service warned that the start of production at Minas-Rio and other major projects would keep the iron ore price depressed.
Moody’s has lowered its iron ore price forecasts for between now and 2016 to $75-85 per tonne for 62% fines, from $95-105/t previously.
The Metal Bulletin spot price for 62% fines is currently $79.52/t.
