Urucum mineral imports

In 1990 DEMSA began operations importing manganese and iron ore for the local market —SOMISA and Industrias Siderúrgicas Grassi— from the Urucum mines in Corumbá, Mato Grosso do Sul, replacing imports from Australia and South Africa.

The Urucum mine started production in 1908 and holds reserves of 74 million tonnes of high-grade iron ore (66% Fe) and manganese with very low aluminium and silica content. It progressively mechanised its operations, installing the latest generation of mining equipment in 1989.

Logistics

The ore was trucked 29 km from the mine to Ladario Terminal Port on the Paraguay River, loaded onto 1,200-tonne barges and moved down the Paraná–Paraguay waterway in convoys of six to ten barges pushed by a tug, to the Argentine ports of:

• San Nicolás Public Port — domestic market and re-export to Brazil and Colombia
• Buitrago Port (SIDERAR, San Nicolás)
• Martins Port (Ramallo) — exclusively for the domestic manganese market

Exclusive representation

In January 1994 a representation agreement was signed with Urucum Mineração —owned by Companhia Vale do Rio Doce— granting exclusivity for the commercialisation of manganese and iron ore in Argentina.