ArcelorMittal Brasil, the Brazilian subsidiary of the world's largest steelmaker ArcelorMittal, has won a tender for exploration of iron ore in the state of Bahia.
The Casanova, Remanso and Pilão Arcado mines in the north of Bahia are estimated to hold iron ore reserves of 1.5 billion mt and are reported to have the capability to produce 20 million mt per annum in the short term, whereas this tonnage might increase to 40 million mt per annum in the long term.
The cost of the exploration rights has not been disclosed; however, according to local sources, ArcelorMittal will have to pay five percent in royalties as soon as production starts.