Bahia Mineração (Bamin) began operating the Iron Stone mine in Caetité, in Bahia, Brazil, in January 2021 and has started exporting material in July. A minimum of 11 shipments of Fe 65pc (DSO 65) are anticipated for consumers in Asia and Europe totaling 490,000mt by the end of 2021.
The upcoming export shipments are presently scheduled for the end of July and a second one due in August to Germany through the port of Rotterdam, both launching via the Enseada Terminal in Bahia. Transportation logistics are managed by VLI, which operates Centro-Atlântica Railroad (FCA).
Bamin upgrading logistics by 2026
Bamin, part of the Eurasian Resources Group (ERG), has been present in Brazil since 2005 and made investments in Mina Pedra de Ferro, in the region of Caetité, Porto Sul, in Ilhéus, and the upcoming West-East Integration Railway (FIOL).
ERG is the leading transport operator in Central Asia, with extensive experience in railways, and is installing FIOL, an ongoing railway construction project between Caetité and Ilhéus that covers 537km in Section 1. That segment was bought by Bamin in an auction held by the Federal Government in April, in São Paulo’s stock exchange.
Port Sul is being built in partnership with the Bahia state government. The 42mn mt annually capacity port terminal is anticipated to launch in 2026, a year later than initially expected and reported by Davis Index.
The investment will allow the company to replace the logistics infrastructure to facilitate export and for BAMIN to reach the maximum iron ore production and export capacity of 18mn mt in 2026. The sub-concession is for 35yrs use which consists of 5yrs for construction and 30yrs of operating rights.