The Minas-Rio Project is inserted in the southeast border of the São Francisco Cràton and comprises world class iron deposits. The main iron ore is concentrated in a medium unit of the Serra do Sapo Formation which corresponds to a large banded iron formation. The outcrops occur along a narrow ridge of 12km length in NNW-SSE strike and moderately dipping (25o) to the East. All these sequences are controlled by thrust fault systems that are responsible for local duplications, inversions or suppression of the beds.

The Itabira District is located some 80 km to the ENE of Belo Horizonte in Minas Gerais, within an outlier of the Rio das Velhas and Minas Supergroups that are infolded into the surrounded Archaean gneissic complex which separates them from the main Quadrilátero Ferrífero. The operating mines exploit ore developed in the Cauê Itabirite at the base of the Itabira Formation of the Minas Supergroup. This unit is exposed over a continuous strike length of 11 km in a series of synformal and antiformal structures that collectively define a larger synclinorium.

The iron ores of the Itabira district occur both as hard high grade, 67% Fe hematite and as friable lower grade, 45-50% Fe itabirites that must be upgraded. In addition, the orebodies are mantled by canga, (detrital and lateritic material). The hematite ores are interpreted to be due to hypogene enrichment of the itabirites, while the friable ores are the result of supergene leaching of silica and iron enrichment. The geological resource is stated at 1.3 Gt of hematite ore and 2.8 Gt of friable ores.

Iron ore operation in Brazil, Minas-Rio, consists of an open-pit mine and beneficiation plant.

In Brazil, company have developed the Minas-Rio operation (100% ownership), consisting of an open- pit mine and beneficiation plant, which produces a high grade pellet feed product, with low levels of contaminants. The iron ore is transported through a 529-kilometre pipeline to the iron ore handling and shipping facilities at the port of Açu.

Minas-Rio’s pellet feed product also commands a premium price, as its ultra-low contaminant levels and high iron content (67% Fe content) are sought after by steel producers who are seeking to minimise emissions while boosting productivity.