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Overview

Chinese Consortium finances Pedra de Ferro iron mine (linked to Record ID#62077, #62855, #62856)

Commitment Year•2017Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilSector•Industry, Mining, ConstructionFlow Type•Vague TBD

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 5, 2017
Start (planned)
Sep 1, 2017

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned companies

  • China Communications Construction Co., Ltd. (CCCC)
  • China Railway Group Limited (CREC)

Cofinancing agencies

State-owned companies

  • Dalian Huarui Heavy Industry Group Co., Ltd. (DHHI)

Receiving agencies

Government Agencies

  • Government of Brazil

Implementing agencies

Private Sector

  • Bahia Mineração (BAMIN)

State-owned companies

  • China Communications Construction Co., Ltd. (CCCC)
  • China Railway Group Limited (CREC)
  • Dalian Huarui Heavy Industry Group Co., Ltd. (DHHI)

Loan desecription

Chinese Consortium finances Pedra de Ferro iron mine (linked to Record ID#62077, #62855, #62856)

Narrative

Full Description

Project narrative

In September 2017, the Brazilian state of Bahia, Bahia Mineração (Bamin) (a Brazilian subsidiary of Eurasian Resources Group), and a Chinese consortium agreed to fund the project of the Pedra de Ferro iron ore mine. The Chinese consortium is comprised of China Railway Group, China Communications Construction Co., Ltd., and Dalian Huarui Heavy Industry Group. Bamin completed a US $200mn feasibility study for the project in August 2010 and was awarded an operating license in June 2014 (Minex Forum). 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 (Splash). This project is linked to Record ID#62077, the overarching project of an MoU worth $2.4 billion between the Bahia government, BAMIN, and the Chinese consortium for the development of an integrated mining and logistics project in Brazil. The other sub-projects of this agreement are #62855, the Porto Sul deep-water port; and #62856, the Fiol railway. The projected date of full operation for these projects is 2024 (Bahia State Government) The transaction amount and current status of this project are unclear.

Staff comments

This project is a subproject of #62077, an MoU for the development of a $2.4 billion integrated mining and logistics project in Brazil. Sources vary on what the date of the signing of the MoU is- Metro 1 says it was on September 1st, Mining News says it was September 4th, Minex Forum says it was September 5th.