Yamana Gold unit gets green light to raise production in Bahia

Jacobina Mineração, a Brazilian subsidiary of Yamana Gold, has had its environmental license renewed to operate in Bahia state, which means the Canadian company can expand production. 

The license, obtained from the environmental and water resources regulator in Bahia state, Inema, permits Jacobina Mineração to expand gross production of gold ore from 2.5Mt/y to 3.65Mt/y, the company said in a statement posted on the website of national mining association Ibram. 

With the renewal, valid for three years, Jacobina Mineração's current phase 2 expansion is progressing ahead of schedule. In this stage, the firm will raise the production capacity of its processing plant from 7,500t/d to 8,500t/ this year.

The company also will start feasibility studies regarding phase 3 of its project, in which it is expected to reach capacity of 10,000t/d. The feasibility study is expected to be completed in 2023.

Yamana Gold is the third largest gold producer in Brazil and employs over 3,000 people at its Jacobina operation. 

BAHIA STATE 

Bahia state has seen rapid growth in mining activity in recent quarters. 

Last year, Bahia state's revenues from mining royalties, known as the CFEM tax, rose 86% to 175mn reais (US$31.4mn), according to state mineral research company CBPM. That figure is higher than the nationwide increase in the CFEM, which climbed around 69% in the period. 

The northeastern state consolidated its position as country's third largest in terms of mining production, only behind the top two mining-focused states, Pará and Minas Gerais. 

Mining activity in Bahia continues to grow with the start of operations of Bahia Mineração (Bamin) last year, which allowed the progress on construction of a railway project to support mining logistics in the state. 

Last year, Bamin won the concession for the east-west integration railway Fiol and will complete a logistics corridor by connecting the railway to Porto Sul port.