19 September 2010



We have again had an amazing couple of days this time in the area around Carajas in the north of Brazil not too far from the equator. It is in the Amazon jungle which you notice as you come in to land. The next thing you notice is the heat. Hits you as you get off the plane and doesn’t let up until you find air conditioning. The days we were there were 380 and 390 every day and it is only mid September. I really wonder what January is like???

Vale believes this could be the greatest mineral province in the world and I think they could be correct. Firstly about the area. We stayed in the town of Parauapabas. If you can say it you are better than us. We just said we stayed in the wheelbarrow town. Any name I can’t say I just call wheelbarrow. There are a lot of them in Brazil. This is a very poor town which should see tremendous social benefits from the mining growth in the area. The housing is eye-opening with “homes” jammed together like sardines. Many homes had clothes lines strung up on the footpath. Our hotel (don’t call it a motel in Brazil as these establishments are rented by the hour for dalliances) was the cleanest and nicest part of town.

You can’t speed here (a fact the locals seem to have missed) as there are huge speed bumps on the main roads and the back streets have a network of very deep gutters which run across intersections to get the obviously huge volumes of water away during the wet season.

Back to the mineral province. Within a few hours of Carajas there are iron ore mines, copper mines, manganese mines, nickel mines, gold mines and bauxite mines. This area has the largest iron ore mine in the world and Vale are developing a bigger iron ore mine about 50km away. They are also developing a copper mine which will be one of the biggest in the world. There are eight copper mines either in production or planned within 2 hrs. Vale controls all of the mineral province and are committed to developing it. At present it is the increasing environmental controls which are slowing the development a little but it will happen. Vale want to be the biggest mining company in the world and this area could easily deliver that title to them so BHP had better watch out.

On Monday we travelled from Rio to Carajas which took about 4.5 hours. We then had a tour of the Sossego Copper Mine. This is one of eight copper mines planned for the area. It is currently 140 metres deep and is planned to go down to 420 metres. They have three large shovels, three smaller shovels, three large excavators and four large front end loaders. They have about 40 large trucks. We thought it was big until they told us that the “big” copper mine (about 150km from this one by road) was going to be four times larger!!! It was commented to me that given the amount of copper in this area – “don’t bet on copper” as there is enough here to flood the world market.

On Tuesday we repeated our 4.5 hour seminar – in a hall in a really poor and dirty area. The hall itself was OK. There were 22 attendees from most of the mines. Most impressive were the two attendees from a Nickel mine who left home at 4.00am for our 9.30am start. Least impressive was the representative of the innovation department who couldn’t get to the town as the road from the town he stayed in was blocked by some local group agitating for better social services (mostly housing) from the Government. We might have had our elections in Australia but they are yet to have theirs. They are on the first weekend in October so the local agitators are all active. Geraldo worried me just a little when he informed me he forgot the charger for his laptop. So I thought I would have to do 141 slides written in Portuguese with no English prompts. I know it pretty well but still some way to go to speak for 4.5 hrs with minimal prompts. The day went well although we didn’t have the real time translation. This time I said a sentence and our Brazillian distributor said a sentence. It was well accepted so either I did a good job or he did (or maybe we both did?). I was very tired by the end. I made the mistake of going out to the kitchen area to thank the people who catered at the end of the day. What a stupid idea. It was a thousand degrees under a tin roof and the kitchen had a dirty concrete floor. It was just as dirty as outside. Judy and I didn’t get sick (yet) which is a miracle. The caterers did a great job (I think) in very difficult conditions!!

That night Geraldo took us to his favourite restaurant in Parauapados (you know – the wheelbarrow town). Geraldo and I shared a huge fish dish. Don’t have a clue what fish but it was good. Judy ordered a chicken dish. Half an hour later they came out and informed us that the chicken was “no good”!! What does that mean?? Had it been out under that tin roof or had the chicken meat (when it was a chicken) been cooked too often under the persistent sun?? Or maybe the chicken wasn’t really chicken and they just didn’t serve it to “westerners”? One thing I know is that if it was my restaurant I wouldn’t be telling customers that the chicken was no good. “We ran out” or “our supplier hasn’t come yet” but not that it is “no good”. Geraldo suggested the parmiagana. Didn’t look like any parmy I have ever seen and Judy confirmed it didn’t taste like any parmy she had eaten. It had some meat in it. Hmmmmm. Mind you the amount they delivered would have been more food that all the people in the poor area we held the seminar in would have eaten in the last week. Hopefully they received the leftovers.

On Wednesday we went to the Carajas iron ore mine. This is currently the largest iron ore mine in the world. They move over 250 million tonnes per annum and produce over 100 million tonnes of iron concentrate. Everything about it is big. They have the largest model rope shovel in the world (120 tonne payload); they have the largest model excavator in the world; they have the largest model truck (400 tons); etc. They have three huge pits with over 30 loaders and 108 trucks. However, size is not everything. Size produces logistical issues with maximising equipment output. Hopefully we can help them with that. he morning was a site tour and the afternoon I gave another (1 hr) presentation to two people from Carajas’s training department. We caught the flight back at 6.00pm and got back to our apartment in Rio at 11.00pm.

After three 15-17 hour days we decided to have a few days off so we took a long weekend to Iguazu Falls. This place is amazing from another perspective but more about that later.

12 September 2010

We have had an amazing couple of days in Belo Horizonte. The city itself is not particularly attractive but for anyone with a mining bent this area is approaching Nirvana. There are mines everywhere which mine everything from iron ore to gemstones. However - no coal. Belo Horizonte is about 450km from Rio de Janeiro and is a small city of about 4M people, ie. It is bigger than Sydney. Like everywhere in Brazil the traffic is a nightmare.

We spent the first part of the week putting the final touches on the 4hr presentation I was scheduled to give on Thursday. It had to be in English and Portuguese with both versions perfectly aligned with animations etc.

On Wednesday we visited CSN’s iron ore mine near Congonhaus; about 2hrs out of Belo Horizonte. The town is “interesting” and we didn’t stay there (unlucky Trevor). It is a big mine with EX5500 excavators, P&H2800 shovels, Cat793 and Terex 4400 trucks. They are planning a major expansion over the next few years. Their plans are to produce upwards of 70M tonnes of product iron per year. The most memorable part was the mine vehicle we travelled in. It was seriously the worst mine vehicle I have ever been in and sounded like it was going to blow up at any second. I prayed that it would just stop in a puff of smoke.  Probably a hire car! I gave them a presentation in English which was translated a page / line at a time into Portuguese. I was told the feedback was good. I didn’t have a clue what they were saying.

On Thursday we had the big Vale presentation in Belo Horizonte. There were about 40 people in attendance from two of Vale’s regions (south and east) and head office people. We had the General Manager of Innovation as well as the Manager of Truck and Loader Innovation and Manager Geology from the Innovation Group present plus a number of senior head office people. There were also ten mine managers present. We had real time translation from me speaking English to Portuguese through headsets.& There was a man and a woman translating who worked half hour shifts. They were amazing. What a skill. To hear in one language and speak the words in another. The sad part is that the male translator’s English was much better than my corrupted Australian English. His parents were British Missionaries so he is bilingual. The major screen which the audience saw was in Portuguese and another little screen I was looking at in English. It took many days of planning and setting up but I think we pulled it off. The Distritec guys were ecstatic about how it went. We actually received feedback from the Northern Vale division (who weren’t there) who said it was very well received. Seems like it caused quite an impact. It looks like simply a matter of time before we get the planned contract with Vale Marianas and others may be interested.

Friday morning we met with the Manager of Truck and Loader Innovation as a follow up to a discussion on Thursday. They are trying to predict truck performance as part of a Zero Budget approach. As far as I can tell this is Vale’s equivalent of Six Sigma or Rio’s Lean. Zero Budget means zero variance from budget. Plans must be met. They seem open to our assistance although I will probably get the Biarri people involved with their Operations Research.

On Monday we fly to Carajas which is in the Northern region to repeat the presentation to another 30 people. This will be more difficult as we won’t have the real time translation. So it will be back to page/line at a time being translated. We will probably have to cut down the slides. We have already culled the presentation from about 270 when we started here to 142 and that fitted in well in the 4 hrs I actually spoke. Once I got confidence in the translators (they kept telling me not to worry about them) I was able to do it like I would present in Australia. Next week will be different.

Click here for the presentation slides ...

4 September 2010


After an interesting trip from Rio De Janeiro to Mariana on Thursday we had a long site visit to the area where we hope to get our first contract in Brazil. Vale has three operating mines in the Mariana’s Complex, Alegria, Fazendao and Fabrica Nova. Between these mines they move around 135 million tonnes of waste and ore per annum. They can sell all the iron they mine and really want to shift more. Of course we can and would like to help.

The equipment is on the whole, relatively small with Cat 994 loaders and Cat785 trucks being the largest at present. Like most mines we will focus on helping them do the simple things well. While the operation is good there is plenty of potential. At the end of the day they are mines and they have a great chance of improving output by investing in making their current resources more efficient than spending excessive money on technological solutions.

There is a discussion going on about the value in the flexibility which the smaller equipment provides vs the economies of scale of larger equipment. Despite what some Australian and other mines might think the economies of scale don’t always add up. Big trucks for example don’t move as much per tonne of nominal capacity compared with smaller trucks and also don’t provide the unit savings which some mines expect.

By agreement with Vale I can’t post any of the mine photos I took but they are like most surface mines – big holes in the ground. Instead I have included a photo of the church next to our accommodation in Ouro Preto (black gold). It was built in about 1760. Ouro Preto is World Heritage listed with the most amazing architecture particularly of the churches. The inside of the Ouro Preto churches has been described as the most complete demonstration of baroque art work in one place anywhere in the world. It is simply amazing and completely priceless both in price and cultural significance.

2 September 2010

We have been here a week preparing with our Brazillian distributors for a number of site visits and presentations. The thought of presenting 160 slides to 50 Brazillian mining executives and managers over a period of five hours where I am speaking English and the slides are in Portuguese scares me more than any other presentations I have ever done. I will have a real time interpreter and have been told I can’t get excited and speak quickly. This is really difficult as I am passionate about the work we do so I have to find a way of being passionate while expressing the personality of a house brick all while the interpreters try to keep up with me.

As well as the preparation time I made some investigations into sand mining in Rio De Janeiro. I have to say that the local miners seem more interested in their beach volley ball than extracting the riches from the miles and miles of sand. I would also have to say that their PPE leaves a lot to be desired, but it is easy on the eyes. Actually I got the best of both worlds this morning, when having breakfast I was able to observe a young Brazillian female miner practise beach volley ball in her PPE. Hmmmmm.

Tomorrow morning we fly to Belo Horizonte for a few days so will report further in the next little while. No sand mining for a few days – damn!!!