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Bahia Mineracao Seeks $1.4 Billion to Finance Iron Ore Project

By Joel ScanlonSep 9 2010

Bahia Mineracao Ltd is seeking a loan of $1.4 billion from banks in Brazil to finance an iron ore project in the north east of Brazil.

The Pedra de Ferro project in Bahia state needs about $ 1.8 billion worth of investment. The Bahia Mineracao company is controlled by Zamin Ferrous and Eurasian Natural Resources Corp (ENRC). ENRC bought 50% of the Bahia Mineracao for $300 million in 2008.

Martin Kannengieser a corporate director with Zamin Ferrous mentioned that Brazil's state development bank will probably be the lead lender for the project. Kannengieser gave an interview at Zamin Ferrous's London office where he said that they were looking to raise about $1.3 to 1.4 billion in Brazil and would borrow the rest through equity.

Talks with regional banks such as the Banco do Nordeste do Brasil are still going on. These banks will provide part of the finance along with the state owned development bank. The Pedra de Ferro project is expected to produce 19.5 million tons of iron ore concentrate by 2013.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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APA
Scanlon, Joel. (2019, March 19). Bahia Mineracao Seeks $1.4 Billion to Finance Iron Ore Project. AZoMining. Retrieved on April 26, 2024 from https://www.azomining.com/News.aspx?newsID=313.
MLA
Scanlon, Joel. "Bahia Mineracao Seeks $1.4 Billion to Finance Iron Ore Project". AZoMining. 26 April 2024. <https://www.azomining.com/News.aspx?newsID=313>.
Chicago
Scanlon, Joel. "Bahia Mineracao Seeks $1.4 Billion to Finance Iron Ore Project". AZoMining. https://www.azomining.com/News.aspx?newsID=313. (accessed April 26, 2024).
Harvard
Scanlon, Joel. 2019. Bahia Mineracao Seeks $1.4 Billion to Finance Iron Ore Project. AZoMining, viewed 26 April 2024, https://www.azomining.com/News.aspx?newsID=313.