Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Luxembourg-based Eurasian Resources Group (ERG) will begin the iron ore production at the Pedra de Ferro mine in Brazil this month (December), as per media reports citing a statement by the company.


The mine will begin commercial production with an initial capacity of 2mn mt per annum of high-grade iron ore. The output will increase to 18mn mt per annum once it is ramped-up to full capacity. Pedro de Ferro has an expected mine life of 30 years.


The mine is a part of the company’s BAMIN integrated mining and logistics project. The project also includes Porto Sul, a deep-water port complex, and an associated railway apart from the Pedro de Ferro mine.


Currently, ERG is focusing on the construction of the necessary infrastructure for Porto Sul and other details. The total investment for the project is BRL10bn ($1.96m).


Demand for iron ore in Brazil has increased significantly. The country’s iron ore exports have also decreased as demand in the domestic market is bullish and prices of iron ore are soaring across the globe. The project is expected to boost the country’s total iron ore production.

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