Vale, Cedro, and BNDES focus on mine and railway
06/16/2025
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After a period of stalled negotiations, discussions around the Bahia Mineração (Bamin) project have regained momentum. According to Valor’s business website Pipeline, Vale, Cedro Participações, and BNDES have resumed talks centered on the mine and railway operation, while actively looking for a third party to take over the port terminal. The companies have approached investors from the Arab world and China, offering the incentive of a “take-or-pay” contract for iron ore transportation.
The Bamin project includes an iron ore mine in Caetité (Bahia) with an annual production capacity of 26 million tonnes, the completion of a section of the West-East Integration Railway (FIOL), and the construction of a port terminal in Ilhéus, also in Bahia. Total investment in the venture could surpass R$30 billion, according to estimates. Bamin is owned by Kazakhstan’s Eurasian Resources Group, which has been seeking a buyer for the entire project.
Talks around the project have seen several starts and stops. Brazil Iron, another interested party, submitted a proposal but failed to secure exclusivity for the deal.
Behind the scenes, sources say the federal government is pushing for the project to move forward and would prefer to see Vale take the lead. Vale CEO Gustavo Pimenta has publicly acknowledged that Bamin is among the projects under review. However, the company has not committed to any timeline for making a decision.
While the matter is under discussion at the technical and executive levels within Vale, it has not yet reached the board of directors, according to Valor’s sources. The due diligence process includes geotechnical assessments to determine the size of the reserves and iron content.
In response to inquiries, Vale referred to its latest public filing on the Bamin matter, which states that “investment opportunities are evaluated as part of the company’s regular business activities.”
A joint effort by Vale, Cedro, and BNDES is seen as a viable path forward. Cedro lacks the capacity to execute the project on its own, while neither Vale nor BNDES appear willing to shoulder the full risk independently. According to sources, BNDES could potentially contribute equity and also help fund the project.
Market participants have expressed concern that political pressure could push Vale into an investment that ultimately erodes shareholder value. A source close to the company emphasized that any potential investment in Bamin would only proceed if it met internal return thresholds. During the commodity boom of the 2000s, Vale made international acquisitions that later led to losses and divestitures—some sold at symbolic values.
Analysts argue that it would make more strategic sense for Vale to focus on expanding and developing new mines in Carajás, in southeastern Pará, where it already has high-grade reserves and supporting infrastructure. The challenge, however, is that both Vale and the broader mining sector are still waiting on a federal decree on cave regulation. The long-anticipated legislation would define mining permissions in areas with protected caves, which are home to sensitive flora and fauna. To date, the decree has not been issued.
*By Maria Luíza Filgueiras and Francisco Góes — Rio de Janeiro
Source: Valor International
https://valorinternational.globo.com/