Can you give us an overview of the current projects of B&A Mineracao?

Since our establishment in August 2012, we have been expanding our portfolio and looking for new potential projects. Specifically, in phosphates and potash, we are finalizing our acquisition of Rio Verde Minerals and establishing a new phosphates target in the northeast. We inherited the Bonito project from Rio Verde, which is currently in the implementation stage and should be operational by December 2013. We also have an interesting acquisition in Chile for copper production, and we are starting a program in Northern Chile to produce concentrated copper. Moreover, we are going through a due diligence process for several iron ore projects in Brazil and discussing several acquisitions in Africa.

What is the current investment budget for new projects?

B&A started with a budget of approximately $550 million, which we plan to invest over the next two to three years. Of this, $185 million went into acquiring Rio Verde and our 12% stake in MBAC Fertilizer Corp. We are currently focused on consolidating our portfolio, but we may go to the markets for a second round of funding in the future. The main challenge is finding quality projects and ensuring value to our shareholders, but we have assembled a highly skilled team to achieve this.

How does B&A deal with the shortage of skilled labor in Brazil?

Sourcing skilled labor is still a factor to consider when planning a new project, but the quality of Brazil’s labor force has improved significantly in recent years thanks to education improvements and private initiatives. For example, in the northeast, a training program called CESI delivers training and capacitation in specialized engineering. However, high labor costs can be a challenge to a company’s competitiveness.

What is B&A’s view on the new Mining Code and how will it affect the industry?

Although many companies fear the consequences of the new legislation, one positive aspect is that now the rules of the game will be much clearer for everyone involved. We believe that the new code, although not perfect, will establish more stable conditions to attract investment. However, some issues, such as environmental licensing and infrastructure problems, need to be addressed. We are confident that these areas will be cleared up as the law passes through Congress.

How does B&A manage its relations with local communities?

We believe it is vital to work together with communities from the early stages of project development, invest in the local area, and explore how our project can benefit the community. For example, at the Bonito site, we will give a proportion of the fertilizers produced at the mine to local farmers. We also have interests in the energy sector and can offer bioelectricity produced from sugarcane to local people. Providing extra services to the community benefits not only the local area but also helps authorities see the positive effect we can have on the country, making it easier for us to acquire necessary licenses.