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Brazilian authorities suggest acquisition of Bamin by Vale

Tuesday, 09 July 2024 09:16:31 (GMT+3)   |   Sao Paulo

According to the Brazilian newspaper “O Globo”, a group of politicians linked to the federal government and to the government of the southeastern state of Bahia, is exerting pressure on the local miner Vale to assume the control of the iron ore miner Bahia Mineração – Bamin.

Bamin is controlled by the Eurasia Group, from Kazakhstan, and is exploring the mine Pedra de Ferro, located in Bahia.

The company also has a concession to build and explore the FIOL railway, linking the mines to the port of Ilhéus, also in Bahia.

Bamin has recently dismissed 400 workers from the construction of the first stretch of FIOL, amid rumors of problems derived from a high financial debt and a net loss equivalent to $6.0 million in 2023.

According to analysts, the acquisition of Bamin by Vale would result in a high level of synergies, as the iron ore from Pedra de Ferro could be exported using Vale’s own logistics, avoiding the construction of the railroad and of the iron ore terminal in Ilhéus.

In a statement to the market, Vale said that its “potential participation in acquisition, divestment or joint venture operations, or other business opportunities, is assessed in light of its strategic priorities”, adding that “there is no relevant information to disclose to the market as a result of this prospecting at the moment”.

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