Eurasian Resources Group’s (ERG) Brazilian subsidiary BAMIN has won a government auction to complete and operate the first 537m stretch of the East-West Integration (FIOL) railway.
This will provide a high-capacity and low-cost link between ERG’s Pedra de Ferro mine in Caetite and its Porto Sul port in Ilhéus, Bahia state.
The bid follows the recent commencement of commercial operations at the Pedra de Ferro Mine with an initial capacity of 2 Mtpa of high-grade iron ore, and the beginning of construction of Porto Sul in late 2020.
Benedikt Sobotka, CEO of ERG, commented: “ERG is continuing to demonstrate its industry leadership via a pipeline of projects internationally.
“The current announcement from BAMIN is a vital milestone for our shared ambition to respond to growing demand for a host of commodities, including iron ore, in a sustainable and responsible manner.
“Our business plays a strategic role in Bahia’s socioeconomic development, and the addition of the FIOL railway marks an important achievement for our integrated portfolio of mining, processing, energy, logistics and marketing operations.”