Cleveland’s management have successfully led high profile projects across the world. This experience positions the company to acquire quality projects and develop them with speed, stability, sustainability, and profitability.
Cleveland focuses on mining commodities, not mining the sharemarket. Activities are centred on developing and mining robust resources at the lowest price.
These deposits must be cheap to mine and should offer potential for profits at the bottom of the commodity price cycle. This strategy maximizes the certainty of return on investment and minimizes the risks associated with commodity cycles. Local infrastructure, energy costs, legislative framework, royalties systems, sovereign risk, and access to labour are assessed before entering into projects.
Working ahead of the commodity cycle
Whilst many investors reduce their investment in a contracting financial market, others seize on the opportunities that arise. Cleveland was established in the wake of the Global Finacial Crisis to benefit from:
- Access to first class projects, personnel and equipment;
- Reduced construction time and costs;
- An ability to establish low operating cost base.
Mining in Brazil
Cleveland’s initial focus is on Brazil because it offers excellent mineral potential with:
- Low labour costs;
- Low energy costs;
- Attractive, sound mining legislation;
- Low taxation rates and where repatriation of capital is allowed;
- Comparatively smooth bureaucratic process to enable swift examination, construction and mining;
- Well understood geology with relatively low exploitation levels;
- Excellent operational history, access to professional, skilled and semi-skilled personnel;
- Access to contractors, equipment and minerals service companies (drilling, assays, blasting, consumables).
Brazil is strongly regarded as the next boom area in mining. Its sovereign risk rating is excellent with constitutional amendments in 1995 providing a landmark in Brazilian mining legislation by granting foreign companies the right to hold majority ownership in Brazilian projects, and equality of fiscal and economic treatment.
A History of Brazilian Mining: 500 years of preparation
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