Ero Copper Confirms Fatality in Non-Operational Area on Surface at the Caraíba Operations

Rhea-AI Summary

Ero Copper Corp. (TSX: ERO, NYSE: ERO) has confirmed a fatal accident at its Caraíba Operations. The incident, involving a light-duty truck in a non-operational surface area, resulted in the death of one team member and left another in critical condition. In response, the company:

1. Activated emergency response and safety protocols
2. Suspended operations temporarily
3. Notified relevant government authorities
4. Initiated a full investigation

Operations at Caraíba are expected to resume the following day. CEO David Strang expressed deep sadness over the incident and extended thoughts to the affected families and community.

Positive

• Swift activation of emergency response and safety protocols
• Prompt notification of relevant authorities
• Rapid initiation of a full investigation
• Operations expected to resume quickly, minimizing production impact

Negative

• Fatality of a team member
• Critical injury of another team member
• Temporary suspension of operations at Caraíba
• Potential safety concerns in non-operational areas

Insights

Health and Safety Expert

This tragic incident at Ero Copper's Caraíba Operations underscores the critical importance of robust safety protocols in mining operations, even in non-operational areas. The fatality and critical injury resulting from a light-duty truck accident highlight potential gaps in safety measures that extend beyond active mining zones.

Key points to consider:

• The accident occurred in a non-operational area on surface, emphasizing the need for comprehensive safety measures across all facility locations, not just active mining sites.
• The company's immediate response, including suspending operations and activating emergency protocols, aligns with industry best practices for incident management.
• The involvement of government authorities in the investigation is important for ensuring transparency and identifying potential systemic issues.

For investors, this incident may have several implications:

• Potential for increased regulatory scrutiny and safety audits, which could lead to additional costs for implementing enhanced safety measures.
• Possible impact on employee morale and productivity in the short term.
• Reputational risks that could affect stakeholder relationships and potentially influence future permitting processes.

While the company's swift response is commendable, the incident underscores the ongoing challenges in maintaining safety in all aspects of mining operations. Investors should monitor the investigation's outcomes and any resulting changes in safety protocols, as these could impact operational efficiency and costs moving forward.

Mining Industry Analyst

The tragic incident at Ero Copper's Caraíba Operations, while deeply unfortunate, brings to light several operational and financial considerations for investors:

• Operational Impact: The temporary suspension of operations, albeit brief, could result in a minor production shortfall. With operations expected to resume the following day, the direct impact on output should be
• Safety Investments: This incident may prompt increased investments in safety measures, particularly in non-operational areas that may have previously received less attention. Such investments, while necessary, could impact short-term capital allocation.
• Regulatory Scrutiny: Heightened regulatory oversight following this incident could lead to more frequent inspections and potentially stricter safety requirements, affecting operational flexibility and costs.
• Insurance and Liability: Depending on the investigation's outcome, there may be insurance implications and potential liability concerns, which could impact financial projections.
• Workforce Relations: The company's handling of this tragedy will be important for maintaining positive relations with its workforce and local communities, which are essential for smooth operations in the mining sector.

While the immediate financial impact appears , investors should closely monitor the long-term implications on operational practices, regulatory compliance costs and community relations. The company's response and any resulting safety enhancements will be critical factors in assessing Ero Copper's risk profile and operational resilience going forward.

VANCOUVER, British Columbia, July 29, 2024 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the “Company”) is deeply saddened to confirm the tragic loss of a member of its team, who succumbed to injuries sustained in a light-duty truck accident at the Caraíba Operations. A second team member is in critical condition. Details surrounding the incident, which occurred in a non-operational area on surface, are still under investigation.

In response to this tragedy, the Company immediately activated its emergency response and safety protocols which included suspending operations, notifying the relevant government authorities, and undertaking a full investigation. Operations at Caraíba are expected to resume tomorrow.

“We are profoundly saddened by this tragic incident, and our sincerest thoughts are with our colleagues’ families, friends, coworkers and community during this difficult time,” said David Strang, CEO of Ero Copper.

ABOUT ERO COPPER CORP
Ero is a high-margin, high-growth copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The Company's primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração Caraíba S.A. ("MCSA"), 100% owner of the Company's Caraíba Operations (formerly known as the MCSA Mining Complex), which are located in the Curaçá Valley, Bahia State, Brazil and include the Pilar and Vermelhos underground mines and the Surubim open pit mine, and the Tucumã Project (formerly known as Boa Esperança), an IOCG-type copper project located in Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the Xavantina Operations (formerly known as the NX Gold Mine), comprised of an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations and Tucumã Project, can be found on SEDAR+ at www.sedarplus.ca/landingpage/ and on EDGAR (www.sec.gov). The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “ERO”.

FOR MORE INFORMATION, PLEASE CONTACT
Courtney Lynn, SVP, Corporate Development, Investor Relations & Sustainability (604) 335-7504
info@erocopper.com

CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS
This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). Forward-looking statements include statements that use forward-looking terminology such as “may”, “could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”, “continue”, “potential”, “view” or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Forward-looking statements may include, but are not limited to, statements with respect to the timing of restarting operations at the Caraíba Operations and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements.

Forward-looking statements are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve statements about the future and are inherently uncertain, and the Company’s actual results, achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to herein and in the AIF under the heading “Risk Factors”.

The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to predict and beyond the Company’s control. In connection with the forward-looking statements contained in this press release and in the AIF, the Company has made certain assumptions about, among other things: favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable terms to advance the production, development and exploration of the Company’s properties and assets; future prices of copper, gold and other metal prices; the timing and results of exploration and drilling programs; the accuracy of any mineral reserve and mineral resource estimates; the geology of the Caraíba Operations, the Xavantina Operations and the Tucumã Project being as described in the respective technical report for each property; production costs; the accuracy of budgeted exploration, development and construction costs and expenditures; the price of other commodities such as fuel; future currency exchange rates and interest rates; operating conditions being favourable such that the Company is able to operate in a safe, efficient and effective manner; work force continuing to remain healthy in the face of prevailing epidemics, pandemics or other health risks, political and regulatory stability; the receipt of governmental, regulatory and third party approvals, licenses and permits on favourable terms; obtaining required renewals for existing approvals, licenses and permits on favourable terms; requirements under applicable laws; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with local groups and the Company’s ability to meet its obligations under its agreements with such groups; and satisfying the terms and conditions of the Company’s current loan arrangements. Although the Company believes that the assumptions inherent in forward-looking statements are reasonable as of the date of this press release, these assumptions are subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. The Company cautions that the foregoing list of assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.

FAQ

What happened at Ero Copper's Caraíba Operations on July 29, 2024?

A fatal accident involving a light-duty truck occurred in a non-operational surface area, resulting in one death and one critical injury among Ero Copper's team members.

How did Ero Copper (ERO) respond to the accident at Caraíba Operations?

Ero Copper immediately activated emergency protocols, suspended operations, notified authorities, and launched a full investigation into the incident.

When are operations expected to resume at Ero Copper's Caraíba site after the July 29 accident?

Operations at Caraíba are expected to resume the day following the accident, which would be July 30, 2024.

What safety measures is Ero Copper (ERO) taking following the fatal accident at Caraíba?

Ero Copper has initiated a full investigation into the incident and activated its safety protocols. Specific long-term measures may be implemented based on the investigation's findings.