Mining Operators in Brazil: A Case Study

Dragon Sourcing completed a four-week project to identify mining operators for removal, overburden, and extraction services in Brazil. The client, a global leader in mineral-based specialties, sought partners for kaolin extraction, wood removal, and overburden removal across two mines.   

The project progressed efficiently, starting with 28 identified operators and concluding with 19 RFI submissions. A weighted scorecard evaluated suppliers on business information (25%). It also evaluated them on capacity and technology (58%), and quality, safety, environmental, and corporate responsibility (11%). Lastly, it covered cooperation (6%).   

Key findings revealed 11 suppliers scoring above the average of 63.89%, with the top-ranked supplier achieving 80.76%. Notably, the current supplier ranked second with 77.63%.   

Dragon Sourcing recommends advancing the top 7 suppliers to the next phase. The phase includes tendering, detailed RFQ, commercial talks, and final selection based on price and capabilities.   

A sample supplier profile highlighted a company with diverse operations: 50% mining, 40% construction, and 10% energy. Their 2014 turnover reached 615 million Brazilian reais, with a fleet of 333 vehicles and 1,065 employees, including 27 engineers.   

The project also revealed valuable insights into the Brazilian mining industry. Suppliers showed strong overburden removal and extraction abilities. Many offered 100% in-house services for these operations. Wood removal often involved a mix of in-house and subcontracted work, indicating potential areas for optimization.   

Safety and environmental concerns emerged as critical factors. Top suppliers showcased strong policies and dedicated staff in these areas. This aligns with the industry’s growing focus on sustainable and responsible mining practices.   

This targeted approach provided the client with a solid foundation for selecting optimal mining operation partners in Brazil. The process is thorough. It ensures that chosen suppliers will meet the client’s needs for kaolin extraction, wood removal, and overburden removal. It also covers key aspects of safety, efficiency, and environmental responsibility.  

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