LHG Mining is one of the mining sector’s fastest‑growing companies, producing high‑grade iron ore and manganese. The company operates the Urucum and Santa Cruz mines, located in the cities of Corumbá and Ladário, in the state of Mato Grosso do Sul, Brazil.
To support an expansion in Corumbá, LHG Mining engaged Ausenco to develop an integrated mine-to-port logistics solution for iron ore exports from Brazil’s Central‑West region to a port located in Uruguay and ultimately global markets.
The objective was to define a robust and cost‑effective mine‑to‑port export route based on realistic capacity assessments, phased infrastructure development and whole‑of‑system cost optimisation, with each option evaluated for its impact on capital efficiency and operational performance.
The challenge
LHG Mining’s iron ore is of exceptional quality, requiring straightforward processing primarily through crushing and screening. The real complexity lies in transporting the material through 2,500-kilometre multimodal logistics network extending from mine site to export vessels.
Ore is transported from the Santa Cruz and Morro do Urucum operations by rail to river terminals on the Paraguay River, including Porto Gregório Curvo and the Granel Química terminal. The material is then loaded onto barges and assembled into 16-barde convoys. These convoys travel approximately 2,500 kilometers along the Paraguay–Paraná Waterway to Uruguay, where the material is transshipped to ocean‑going vessels for export.
This extensive, multimodal supply chain involves variable river conditions with sections of constrained navigation, multiple port interfaces and long travel distances. Safety, reliability and cost discipline had to be kept top of mind when analyzing logistic options. It was also important to not only understand how each individual logistic component worked, but to consider how the entire system performs as a whole.
The better way
Ausenco’s multidisciplinary team approached the project with a comprehensive mine‑to‑port mindset.
From the early feasibility study phase, Ausenco worked closely with LHG Mining to understand river dynamics, logistics bottlenecks, infrastructure constraints and operational risks across the full value chain. This perspective enabled a realistic evaluation of both capital expenditure (CapEx) and operating expenditure (OpEx) across the entire logistics system.
We delivered a detailed study of the Paraguay–Paraná Waterway to assess convoy navigation, critical maneuvering points and capacity limitations. In parallel, our team optimised rail interfaces, port layouts and stockpiling strategies to reduce inventory levels, downtime and capital intensity.
Port infrastructure was designed using lean principles, including efficient berthing and barge loading systems, while maintaining flexibility for future expansion through a phased development approach. A phased development strategy was adopted, allowing capacity to be increased in line with demand and operational performance rather than committing capital upfront.
Ausenco’s Transportation & Logistics Simulator was used to develop an efficient dynamic logistics model that supported decision‑making by modelling throughout the study. The model simulated river navigation conditions, convoy breakdowns, fleet composition, loading/unloading rates, stockpiles management and queue behaviour. This data‑driven approach ensured that infrastructure sizing and operating strategies were resilient, efficient and scalable.
The project brought together multidisciplinary teams from Brazil, Canada and Chile, enabling integrated engineering solutions and a truly system-wide perspective across the supply chain.
The outcome
By applying a system‑wide view of logistics, Ausenco delivered a flexible and capital‑efficient solution aligned with LHG Mining’s growth objectives.
Our work provided a clear understanding of the logistics capacity of the Paraguay–Paraná Waterway and achieved significant reduction of in port infrastructure capital costs through optimised logistic design. Operational reliability was improved through lower inventory levels, optimised barge and vessel fleets configurations and just‑in‑time operating principles, supported by a phased investment strategy that strengthened cash flow and reduced risk and provided flexibility to align future infrastructure expansion with demand.