Bahia Mineração attracts new interest

Portuguese conglomerate Mota-Engil has reportedly entered into preliminary discussions to acquire Bahia Mineração (Bamin), an iron ore producer based in Bahia state, Brazil. Negotiations are ongoing with Eurasian Resources Group (ERG), the controlling shareholder of Bamin, which is headquartered in Kazakhstan.

Prior to the start of ongoing negotiations, three other companies expressed interest in acquiring Bamin, but no agreements were reached. For a short period, Bamin was able to export iron ore using Vale's logistics network.  Industry analysts have expressed concerns about the economic viability of the project, citing the need for additional investment estimated at $5 billion to complete its development. The latest plans for Bamin include a mine expected to increase production capacity from 1 to 20 million tons per year, a 537-kilometer railway to be completed, and the construction of a sea terminal for iron ore at Ilheus.