Cosan advances in negotiations to create a joint venture between Atlântico Participações and Bergnol Holding Limited for iron mining

Minutes of the meeting published recently showed some changes made by Cosan for the creation of the joint venture between Atlântico Participações and Bergnol Holding Limited, which will be focused on iron mining.

Last Thursday (14/07), minutes of a meeting were published by the logistics and energy company Cosan, which pointed out some changes in the negotiations for the creation of the joint venture between Atlântico Participações and Bergnol Holding Limited. The project will have as main focus the mining of iron in Brazil and will contribute to the growth of the exploration of the ore in the national territory, being taken forward by the company for new negotiations.

Minutes of a recent meeting point to the expansion of negotiations for the creation of a mining joint venture between Atlântico Participações and Bergnol Holding Limited

Cosan recently approved an extension of negotiations for the creation of a joint venture between its subsidiaries Atlântico Participações and Bergnol Holding Limited, which is mainly focused on iron mining. The data were disclosed in minutes of the meeting published by the company, that is, a document with the main information on the issues discussed during the company's internal meeting. 

Atlântico Participações and Bergnol Holding Limited had signed a memorandum of understanding during 2021 for the development of the joint venture, but were still waiting for Cosan to move. Since then, both companies have sought to move forward with the iron mining project in Brazil and, with the extension of Cosan's negotiations for the joint venture, the project may take new directions within the company. 

Among the changes in the negotiations carried out by Cosan at the last meeting, according to the published minutes, the main one is the extension by two years of the final deadline to complete the negotiations for the formation of the joint venture. As such, the change in negotiations dictates that a final agreement would now need to be in place by May 2023. 

However, Cosan's document ended up not disclosing the official deadline for this finalization, only the month in which it should occur. In addition, the minutes of the meeting for the joint venture between Atlântico Participações and Bergnol Holding Limited also did not make it clear what was the previous deadline for the conclusion of the negotiations to take place. 

Joint venture between Atlântico Participações and Bergnol Holding Limited could bring new directions for Cosan in the mining business 

Since announcing the project to create a joint venture between Atlântico Participações and Bergnol Holding Limited, Cosan has stated that it intends to use its experience in logistics to boost the venture. The company highlighted at the time: “JV Mineração will be an integrated mining and logistics company, which will own, in addition to the Port, exploration rights to mining assets in three mineral projects located in the State of Pará, with important potential for ore reserves. of iron, to be disposed of through Porto”.

The joint venture between the Cosan companies is expected to start operations in the mining sector as early as 2025, focusing on the area of ​​Parauapebas (PA), in the region of Carajás, connected to Porto by the Carajás railroad. The company also highlighted that the environmental commitment will be one of its main focuses in the creation of the company and that the operations will adopt ESG practices in iron mining. 

And, with the changes in the new company's negotiations, Atlântico Participações and Bergnol Holding Limited will be able to accelerate the joint venture process and begin to develop projects for future mining in the Pará region, focusing on the area's iron reserves.