Cosan, a Brazilian sugar and ethanol producer, said this week it will establish a joint venture (JV) to enter the local iron ore market. The company said the JV is part of its plan to diversify its portfolio of investments.
Cosan said Grupo Paulo Brito, which owns and controls Aura Minerals, will join Cosan for a JV to “explore iron ore, which will be transported by the Port (of São Luís).”
“The mining JV will be an integrated logistics and mining company, which will own, in addition to a port, mining exploration rights in three projects in the state of Pará, which has a great potential for iron ore reserves,” the company said in a statement.
Additionally, Cosan’s subsidiary, Atlantico Participacoes, will acquire 100 percent of TUP Porto Sao Luis, known as Port of Sao Luis. It will pay BRL 720 million ($136.8 million) for the asset. Cosan plans to use the Port of Sao Luis to support its new iron ore business.