By Brazil Stock Guide – Bahia Mineração SA, the iron ore producer owned by Kazakhstan’s Eurasian Resources Group, is in talks with three potential investors as it seeks funding for a $6 billion expansion project in northeastern Brazil, according to company CEO Eduardo Ledsham.
The shareholders are evaluating offers from interested parties that could result in the sale of either a minority stake or the entire company, Ledsham said Monday (27) during the opening of the Exposibram mining conference in Salvador. A decision on the preferred investor is expected by early 2026, he told reporters.
The expansion plan covers the Pedra de Ferro mine, the West-East Integration Railway (Fiol), and the Porto Sul terminal in Ilhéus, Bahia. “We are in the analysis phase and expect to select a strategic partner to make the integrated mine-rail-port project viable,” Ledsham said.
The Pedra de Ferro mine, which can produce up to 2 million tons per year of high-grade ore (65% Fe), has been under maintenance since January. Once the railway and port are operational, Bamin expects to significantly scale production, establishing Bahia as a new iron ore export hub.
Ledsham noted that with a new investor on board, Bamin plans to propose to Brazil’s Ministry of Transport to postpone the start of Fiol’s operations from 2027 to 2031. He added that the company has yet to decide whether ERG will sell its full 100% stake or retain partial ownership.
When asked about potential interest in acquiring Bamin, Vale SA (NYSE: VALE) CEO Eduardo Bartolomeo said the mining giant regularly monitors development projects in Brazil. “As a company, we are always looking at all development opportunities in Brazil, especially in iron ore,” Bartolomeo said. However, he emphasized that Vale currently has “other capital allocation priorities.”
Bartolomeo added that the global M&A environment remains challenging but reaffirmed Vale’s focus on organic growth. “The company’s value creation potential lies in developing its own mineral bodies,” he said.
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