By Brazil Stock Guide – Brazil’s development bank BNDES approved R$ 715.9 million in financing for Companhia Brasileira de Alumínio (B3: CBAV3) to modernize its aluminum production footprint, shortly after the company’s control shifted from domestic ownership to a foreign-led joint venture.
The funding, structured under BNDES’ long-term Finem credit line, will support upgrades at the Alumínio plant in São Paulo state and at the new Santa Isabel logistics yard in Goiás. The investment package is designed to increase operational efficiency, enhance environmental performance and improve production stability.
Projects include the refurbishment of electrolytic furnaces — the core stage that converts alumina into liquid aluminum — modernization of the anode paste plant to raise output and improve quality, and the installation of a filtration system allowing dry disposal of residues at the Palmital dam. The initiative also expands water reuse and caustic soda recovery while upgrading the closed-loop industrial water circuit to reduce potable water consumption.
On logistics, the company will implement a new rail operation to transport bauxite from its Barro Alto unit to the Santa Isabel terminal, cutting reliance on trucks and lowering carbon emissions along the route.
The financing follows a R$ 4.7 billion transaction in which Votorantim — controlled by the traditional Brazilian Ermírio de Moraes family — sold 68.596% of CBA’s total and voting capital to a joint venture formed by China’s Chinalco and Anglo-Australian mining group Rio Tinto. Under the new structure, Chinalco will hold the majority stake in the controlling vehicle, while Rio Tinto will own roughly 30%.
After closing, the new controlling shareholders are expected to launch a tender offer for the remaining minority shares, in line with Brazilian takeover regulations.
Founded in 1955, CBA operates an integrated business model from mining to recycling and states that it generates 100% of the electricity it consumes from renewable sources. In 2024, the company reported net revenue of R$ 8.2 billion and adjusted Ebitda of R$ 1.4 billion.
The move highlights BNDES’ continued role in financing Brazil’s industrial base — even as ownership of strategic assets becomes increasingly global. In a world of tighter climate standards and intensifying competition over critical materials, the bank’s support for CBA adds a geopolitical dimension to the debate around industrial policy, capital sovereignty and public funding priorities.
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