Ero Copper’s Tucuma Operation in Brazil hit by power disruption
Ero Copper Corp. [ERO-TSX, NYSE] said its Tucuma Operation in Brazil has experienced a temporary power disruption following a severe localized windstorm that occurred in the southwest region of Carajas Mineral Province in Para State on October 5, 2024.
The announcement comes after Ero recently achieved its first saleable copper concentrate production at the Tucuma Project. The milestone was achieved following the successful commissioning of the milling and flotation operations prior to the end of the second quarter of 2024. Commercial production is expected to be achieved by the end of the third quarter of 2024.
The company said its workforce is safe, and there has been no damage to the infrastructure at the Tucuma Operation.
The company said the regional power grid, including the main 230 kV transmission line servicing the region, sustained damage during the storm, resulting in a loss of power to more than 200,000 residents as well as all major industrial users. Power has since been fully restored to residential communities and partially restored to industrial consumers. The owner and operator of the transmission line has advised that full restoration to industrial consumers, including the Tucuma Operation is expected in two weeks.
Ero said the power disruption at Tucuma has impacted the milling, flotation and filtration circuits within the processing plant. Mining and crushing operations remain unaffected, with ore continuing to be placed on the run-of-mine and ore stockpiles. The company said it expects the primary impact will be on the ramp-up schedule of the processing plant, and in turn, full-year production results at Tucuma. “While the extent of the impact will depend on the timing of full power restoration, Ero Copper remains well-positioned to manage this temporary disruption and will provide further updates as the situation develops,” the company said in a press release.
Ero shares fell 5.08% or $1.51 to $28.20 in early trading Monday. The shares currently trade in a 52-week range of $32.89 and $15.72.
Ero is a Brazil-focused base metals mining company. Its key asset is a 99.6% stake in Mineracao Caraiba S.A. (MCSA), a long-established Brazilian copper mining company. MCSA’s primary assets are the fully integrated mining and processing operations of the Caraiba Operations (formerly known as the MCSA Mining Complex) in northeastern Brazil.
Ero recently said the Caraiba operations produced 8,091 tonnes of copper in concentrate in the first quarter of 2024. The company’s Xavantina Operations produced 18,234 ounces of gold in the quarter.
In addition, MCSA owns 100% of the “turn key” Tucuma (formerly Boa Esperanca), development project, an IOCG-type copper deposit located in Para State.
Ero CEO David Strang has said the project will play an integral role in the company’s plans to become a 100,000 tonne-per-year copper producer.
Results of an optimized feasibility study announced in September, 2021, indicated up front capital costs of US$294 million. The study envisioned life of mine average annual copper production of 27,000 tonnes at a cash cost of US$1.36 per pound.