Bahia state regulator and mining research company, Companhia Baiana de Pesquisa Mineral (CBPM), will auction an iron ore site on December 10, 2019, it said on Thursday.
CBPM said the tender will select a company to extract iron ore at an Ibitinga city site, in the state of Bahia. The winning bidder will invest a minimum BRL 2 million ($477,040) over a two-year period to aid CBPM with complimentary research, CBPM said.
After the two-year timeline, the selected company will file a request within Brazilian mining regulator, ANM, to operate the iron ore site.
According to CBPM research, there is evidence of iron ore reserves with a Fe 40 content iron ore in the site. CBPM said the winning company may extract the commodity without iron ore dams, by using the technique of magnetic separation of substances.
The Ibitinga iron ore site will have access to Brazil’s Fiol railway, the construction of which should be concluded by 2023.