Eurasian Resources Group's (ERG) wholly owned Brazilian subsidiary Bahia Mineração (BAMIN) has signed a memorandum of understanding (MoU) with Bahia state in Brazil to build a $2.4bn integrated mining and logistics project.
The project comprises BAMIN’s Pedra de Ferro iron ore mine, the Porto Sul deepwater port and the associated FIOL railway.
Under the MoU, the consortium will participate jointly with BAMIN in the ownership and development of the integrated mine, rail and port project and arrangement of financing.
ERG board of directors chairman Dr Alexander Machkevitch said: "Once operational, the Pedra de Ferro mine will supply up to 20 million tonnes of high-quality iron ore to global markets annually, cementing ERG’s position as one of the world’s leading producers of iron ore."
The Pedra de Ferro mine is intended to develop iron ore reserves located near the city of Caetité in Bahia in north-east Brazil.
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Production from the mine is claimed to include direct shipping ore that does not require wet processing.
Porto Sul is a deepwater being built north of Ilhéus city in Bahia. Once complete, the facility will be equipped to deal with capesize vessels and will serve as the export point for BAMIN’s iron ore.
The railway network is being developed in multiple phases, with the first 535km of track extending inland from Porto Sul to a site near Caetité.