ERG weighs offers for Brazil’s $5.7B Bamin iron ore project

Eurasian Resources Group (ERG) is reviewing three offers for its $5.7B Bamin iron ore project in Brazil, which includes a mine, deep-sea port, and 537 km railway, with first shipment now delayed to 2031.

Eurasian Resources Group (ERG) is evaluating three non-binding offers from investors interested in its Bahia Mineração (Bamin) iron ore project in northeastern Brazil, the company’s CEO Eduardo Ledsham said on Monday.

Speaking on the sidelines of a mining conference in Salvador, Ledsham said ERG aims to select and present a new investor to Brazil’s government by the end of the first quarter of 2026.

Strategic asset with integrated logistics

The Bamin project includes an iron ore mine, a planned deep-sea port, and a 537-kilometer railway connecting the two. Once operational, the mine could produce up to 26 million tonnes per year of high-grade iron ore, positioning it as one of Brazil’s key export hubs for premium material.

Ledsham declined to name the bidders but said they include both international and Brazilian groups with strong interest in developing and managing integrated mining and logistics assets.

Investment outlook and government approval

The project requires an estimated US$5.7 billion in additional investment to expand mining operations, complete the Porto Sul terminal, and finish the Fiol railway section linking the mine to the coast.

Because the railway involves a federal concession, any transaction will require Brazilian government approval, Ledsham noted. ERG has not yet decided whether it will retain a minority stake following the entry of a new investor.

In August, Vale SA said it was still assessing potential participation in the project, while Bloomberg previously reported that Brazil Iron Ltd. had submitted an offer of around US$1 billion to acquire Bamin.

Delays and financing challenges

The project’s timeline has been pushed back due to financing constraints and construction delays. The first shipment of iron ore, initially expected in 2027, has now been postponed to late 2031, pending new investment and an updated railway completion deadline to be approved by Brazil’s Transport Ministry.

Bamin suspended railway works in March 2025 while seeking a new capital structure for the project. Ledsham said that Brazil’s development bank BNDES could still play a role in financing, given the project’s strategic importance for the state of Bahia and its potential to carry both mining and agricultural cargo.

Global and geopolitical backdrop

ERG, one of the world’s largest producers of cobalt and chrome, has faced headwinds in advancing Bamin following Russia’s invasion of Ukraine. Ledsham said progress was hindered because the main financial institution involved in the project’s previous funding pool was Russian.

Despite these challenges, the project remains a top infrastructure priority for Brazil, promising to enhance regional logistics, boost exports, and attract new investment into one of the country’s most underdeveloped mining regions.