A consortium of Chinese companies has signed a memorandum of understanding with the Brazil state of Bahia and Bahia Mineração (Bamin), a Brazilian subsidiary of Eurasian Resources Group, to develop a $2.4bn integrated mining and logistics project in Brazil.
The project includes Bamin’s Pedra de Ferro iron-ore mine, the Porto Sul deep-water port and the associated Fiol railway, which will link the landlocked state of Tocantins to the coast of Bahia.
The Chinese consortium is comprised of leading infrastructure and machinery companies and includes China Railway Group, China Communications Construction Company and Dalian Huarui Heavy Industry Group.
According to Eurasian Resources Group, the MOU sets out the intention of the consortium to jointly participate with Bamin in the ownership and development of the integrated mine, rail and port project and to arrange its financing.
The Pedra de Ferro mine will develop high grade, large-scale iron ore reserves located near the city of Caetité, in Bahia. Once operational, the Pedra de Ferro mine will supply up to 20mt of high quality iron ore to global markets annually.
Porto Sul will be a deep-water port located north of the city of Ilhéus, Bahia. It will be capable of handling up to capesize vessels and will be the export point for Bamin’s iron ore.