Policymakers in the state of Minas Gerais are diverging on the benefits of a $2.1 billion iron ore project, the state’s legislative assembly (ALMG) said this week. ALMG said policymakers, environmental and local communities are skeptical about the project, while some other legislators think it would boost the local economy.
Sul Americana de Metais (SAM), a company owned by Chinese holding Honbridge Holdings, signed earlier this year a commitment term with state prosecutors to advance its $2.1 billion iron ore project near the city of Grao Mogol in Minas Gerais state.
The project site, which covers the cities of Grão Mogol, Padre Carvalho, Fruta de Leite, Josenópolis and Salinas, in the state of Minas Gerais aims to produce 27-30 million mt/year of iron ore. The project also includes an iron ore open pit, and a slurry pipeline.
Policymakers Gil Pereira, Carlos Pimenta and Arlen Santiago said the project would boost the region’s economy, while also aiding local communities with the arrival of a large company and the developments it would bring.
Other policymakers said, however, the project is “deceptive,” as there might be lack of water for both the beneficiation and transport of iron ore.
“It would generate jobs in China, but will leave misery and holes in the region,” a state policymaker said.
Marilia Carvalho de Melo, the Minas Gerais state environment secretary, said the project’s environmental licensing process resumed in April this year. She said the state will consult with the local communities and local trade groups, but it is yet to schedule a date for such conversations.