The Portuguese conglomerate Mota-Engil has reportedly entered advanced negotiations for the acquisition of Bahia Mineração (Bamin), an iron ore producer based in the state of Bahia, Brazil. The discussions are being conducted with Eurasian Resources Group (ERG), the controlling shareholder of Bamin, which is headquartered in Kazakhstan.
Prior to these ongoing talks, three other companies expressed interest in acquiring Bamin, but no agreements were reached. For a short period, Bamin managed to export iron ore utilizing Vale's logistics network.
Industry analysts have raised concerns regarding the economic viability of the project, citing the need for additional investments estimated at $5 billion to complete its development. The latest plans for Bamin encompass a mine—where production capacity is expected to increase from 1 million mt to 20 million mt per year—a 537-kilometre railroad requiring completion, and the construction of an iron ore sea terminal in Ilhéus.