Kazakhstan-based Eurasian Resources Group (ERG) has announced that its wholly-owned Brazilian subsidiary Bahia Mineração (BAMIN) has signed a memorandum of understanding (MoU) with the Brazilian state of Bahia and a consortium of Chinese companies to develop a $2.4 billion integrated mining and logistics project in Brazil. The project includes BAMIN’s Pedra de Ferro iron ore mine, the Porto Sul deep-water port and the associated FIOL railway.
The Chinese consortium is comprised of leading infrastructure and machinery companies including China Railway Group, China Communications Construction Company and Dalian Huarui Heavy Industry Group.
The Pedra de Ferro mine will develop high grade, large-scale iron ore reserves located near the city of Caetité in Bahia in northeast Brazil. Once operational, the mine will produce up to 20 million mt per year of high-quality iron ore products. The quality and scale of Pedra de Ferro’s reserves along with its access to efficient logistics infrastructure will make the plant one of the lowest-cost producers of iron ore in the world.