The attraction of large investments in the mining sector in Bahia is due to the high appreciation of iron ore and the rise in the dollar
According to the National Mining Agency (ANM), the appreciation of iron ore and the rise in the dollar have been responsible for the increase in revenues of mining companies in Bahia and have also attracted new investments to the state. The state has large mining projects and with the arrival of new companies, the state could become the third largest iron ore producer in the country. Check out this news: Mineradora Yamana announces new projects for the extraction and production of gold in the state of Bahia
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State has great growth and revenues with mining projects
In the first seven months of this year, mining companies' revenues reached the BRL 5 billion mark, against the BRL 2,9 billion obtained in the same period of 2020, which corresponds to a 73% growth in revenue. Much of this growth in revenues is due to the entry of BAMIN, which started commercial operations in mining in January of this year and intends to transform Bahia into the third largest iron ore producer in Brazil, having shown a growth in production of almost 900% in the first half of 2021, compared to the same period of 2020 (ANM).
Eduardo Ledsham, president of mining company BAMIN, says they are just scratching the surface. Bahia has a potential that goes far beyond BAMIN's mining projects. Currently, the states that produce the most iron ore are Pará, Minas Gerais and Mato Grosso do Sul.
Logistics for the disposal of iron ore
The mining company Brazil Iron also already produces iron ore in Bahia and two others are in the process of being installed – Tombador Iron and Colomi Iron – and new areas with potential for iron ore production continue to be prospected by Companhia Baiana de Pesquisa Mineral (CBPM) and by Companhia Vale do Paramirim.
Antonio Carlos Tramm, president of CBPM, says that studies carried out by CBPM show that the center-west of Bahia, where Caetité is located, is rich in iron ore, uranium and other minerals. In the wake of the West-East Integration Railroad (FIOL), CBPM is already working to attract more investment for opportunities identified in the region and, also, in studies of new mineral deposits 100 km away on each side of the tracks”, he says.
State of Bahia should receive large investments
Brazilian mining should receive investments of US$ 38 billion between 2021 and 2025. Most of it is expected to be carried out in Bahia, which should receive investments of US$ 13 billion (35% of the total) in 28 municipalities. The value is that of contributions planned by mining companies in 92 different projects spread in the areas of influence of 81 municipalities in several states, according to a survey by the Brazilian Institute of Mining (ibram).
Data from the entity collected from mining companies operating in the country indicate that, of these 92 projects, 23 are related to the production of bauxite and alumina; 11 inputs for fertilizers such as phosphate and potassium; nine of copper; nine of zinc; eight of gold; four nickel; two of iron ore; and 25 of other minerals. In second place in the investment ranking appears Minas Gerais, with US$ 11 billion (28%) in 11 municipalities, followed by Pará, with US$ 9 billion (23%) in 13 cities; and other states, where investments of US$ 5 billion (14% of the total) are foreseen in 29 municipalities.
