Eurasian Resources Group enters into a principal agreement with China's NFC to complete the construction of its project in Africa; EXIM and ICBC to support the financing, Sinosure to provide the insurance
BAMIN wins bid to operate FIOL railway, a boost to ERG’s iron ore project in Brazil
Eurasian Resources Group (“ERG” or “the Group”), a leading diversified natural resources group, and its wholly-owned Brazilian subsidiary BAMIN, today announced that BAMIN has won the auction on the Bovespa (São Paulo Stock Exchange) to complete and operate the first 537 km stretch (“FIOL Stage 1”) of the FIOL (East-West Integration) railway. FIOL will provide a high capacity and low cost link between ERG’s Pedra de Ferro mine in Caetite and its Porto Sul port in Ilhéus, Bahia state.
The bid follows the commencement of commercial operations at the Pedra de Ferro Mine with an initial capacity of 2 mtpa of high-grade iron ore, and the beginning of construction of Porto Sul in late 2020.
Benedikt Sobotka, CEO of Eurasian Resources Group, said, “ERG is continuing to demonstrate its industry leadership via a pipeline of projects internationally. The current announcement from BAMIN is a vital milestone for our shared ambition to respond to growing demand for a host of commodities, including iron ore, in a sustainable and responsible manner. Our business plays a strategic role in Bahia’s socioeconomic development, and the addition of the FIOL railway marks an important achievement for our integrated portfolio of mining, processing, energy, logistics and marketing operations.”
Erik Gaustad, Chairman of BAMIN, commented, “FIOL Stage 1 together with our Porto Sul project will have a transformative impact on the region, providing environmentally friendly, safe and reliable logistics for mining, agriculture, and a range of other industries. For BAMIN, FIOL is critical to enable the expansion of Pedra de Ferro production to 18 mtpa, uniquely positioning BAMIN as a low-cost supplier to sustainably meet the demand for high quality iron ore globally.”