Iron ore producer Bahia Mineração (Bamin) announced a new contract to supply iron ore to Anglo American, from the mine of Caetité, in the Brazilian northeastern state of Bahia.
The agreement includes premium iron ore, with iron contents higher than 65 percent, with supply expected to start already in 2023.
The volume involved will start with 1 million mt per year, the current capacity of the mine, but as the contract is based on offtake conditions, it will pave the way for attracting investors for the project, under plans to increase the production capacity to 26 million mt per year until 2026.
Bamin is expected to invest the equivalent to $4.0 billion until 2026, covering a beneficiation plant in the mine, the conclusion of the railroad linking the mine to Porto Sul, near Ilhéus, also in Bahia state, and the iron ore terminal in the port.
The company is also considering the development of other iron ore mines in the state of Bahia. Bamin is controlled by the Eurasian Resources Group (ERG), of Kazakhstan origin.