Construction Progress and Milestones
Ero Copper has announced significant progress in the construction of the Tucumã Project. The physical construction is now over 85% complete, with several key developments:
– The main substation and e-houses have been installed and commissioned, and the 16-kilometer power line tie-in to the national grid is completed ahead of schedule, expected to be fully energized by January 20th.
– Pre-stripping activities are about 10% ahead of schedule, with completion anticipated by the end of Q1 2024. Approximately 3,200 tonnes of sulphide ore have already been stockpiled for process plant commissioning.
– Mechanical completion testing and sub-component commissioning for major processing equipment, including crushers, ball mill, vibrating screen decks, and flotation cells, have commenced.
– The remaining construction activities, including piping, electric cabling, and system installations, are on or ahead of schedule.
2024 Commissioning Plan
Key milestones for the Tucumã Project commissioning before the scheduled production of copper concentrate in H2 2024 include:
– Q1 2024 end: Mechanical completion and sub-component commissioning.
– March 2024: First ore processing through the crushing circuit.
– April 2024: Milling circuit begins processing ore.
– May 2024: Start of regrind mill circuit, concentrate, and tailings filtering systems.
– June 2024: Integrated commissioning with flotation circuit and Project ramp-up.
People & Safety
– The Company has increased its construction workforce by adding approximately 500 trained contractors, bringing the total to about 2,220 personnel.
– Notably, there have been no lost-time injuries on the Project, with over three million work hours completed since 2022.
Direct Project capital expenditures are now estimated at approximately $310 million, reflecting the impact of a stronger Brazilian Real against the U.S. dollar and reduced stripping costs. The Project’s remaining construction expenditures are hedged through the Company’s expanded foreign exchange hedge program, with a weighted average floor and ceiling of 5.10 and 5.23 BRL per USD, respectively. 
