By LIDE
28/07/2026

British company Brazil Iron is accelerating its efforts to position Brazil at the forefront of the industrial energy transition. With a projected investment of US$5.7 billion by 2030, the company is developing the Green Iron Project in the municipalities of Piatã, Abaíra, and Jussiape, located in Bahia’s Chapada Diamantina region. The project integrates the extraction of high-purity iron ore with three industrial processing stages to produce Hot Briquetted Iron (HBI), also known as Green Iron, a key raw material for enabling near-zero-carbon steel production.

The company’s initiative is part of a historic growth cycle for Brazil’s mining sector. According to the Brazilian Mining Institute (Ibram), Brazil’s mining industry is expected to receive US$76.9 billion in investments by 2030—an amount 4.3 times greater than the investment cycle recorded between 2017 and 2021. Iron ore is expected to be the largest individual recipient of these investments, attracting US$19.8 billion.

Bahia’s Competitive Advantage and US$30 Billion in Secured Revenue

The choice of Bahia’s interior is no coincidence. The state is home to one of the world’s rarest mineral reserves: Soft Itabirite, an exceptionally high-purity, low-hardness iron ore that represents only 3% of global reserves. This unique geological characteristic, combined with Bahia’s abundant 100% renewable energy matrix (wind and solar power), provides ideal conditions for producing HBI with 93% iron content.

Even before construction begins—scheduled for late 2026 or early 2027—the company has already sold its entire first ten years of production through two long-term offtake agreements. This advance demand secures an estimated US$30 billion in future revenue.

“Considering that we have not yet started implementing the project and already have buyers committed to ten years of production from two different markets, this clearly demonstrates the strong global demand for this type of product,” said Emerson Souza, Vice President of Institutional Relations at Brazil Iron.

International demand is being driven by increasingly strict regulations, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), which imposes tariffs on carbon-intensive steel, as well as government incentives in Japan aimed at accelerating industrial decarbonization.

Next-Generation Mining: No Tailings Dams and a Truck-Free Mine

Unlike legacy mining operations, the Green Iron Project has been designed as a greenfield development, incorporating the most advanced environmental standards in the global mining industry. The operation has been engineered to operate without tailings dams, using a dry stacking system for waste management.

To minimize both carbon emissions and operational impacts, internal material transportation will not rely on mining trucks. Instead, more than 16 kilometers of long-distance conveyor belts, powered by clean energy, will transport the ore throughout the operation.

Brazil Iron has also partnered with Germany’s RWE to implement a simultaneous environmental rehabilitation solution. A 220-meter-long machine will restore mined areas while extraction is still underway, allowing the land to be fully rehabilitated and suitable for agriculture within seven years. Environmental Impact Assessment (EIA/RIMA) studies were conducted by SENAI Cimatec, ensuring a rigorous technical approach throughout the environmental licensing process.

Green Steel and the New Automotive Industry Paradigm

Replacing traditional coal-fired blast furnaces with Electric Arc Furnaces (EAFs) supplied by Green Iron can reduce CO₂ emissions by up to 95% during the steelmaking process. Over its operational lifetime, the Brazil Iron project is expected to prevent the emission of approximately 473 million tonnes of greenhouse gases.

This innovation directly benefits the automotive industry, where steel accounts for approximately 65% of a vehicle’s total weight.

“There is little point in producing electric vehicles if the steel used to manufacture them continues to generate significant greenhouse gas emissions. The automotive industry is among the first sectors seeking this product to build truly green vehicles—electric in operation and carbon-neutral in their manufacturing process,” Emerson Souza added.

Socioeconomic Impact and Value Creation

Rather than limiting itself to exporting raw iron ore as a low-value commodity, Brazil Iron will vertically integrate production within Brazil. The project’s three processing stages—iron concentrate, pellets, and HBI—will retain industrial expertise, technology, and economic value within the country.

Regarding logistics, the company considers the West-East Integration Railway (FIOL) together with Porto Sul as its primary transportation corridor (Plan A). However, it has also developed a strategic alternative that includes connecting its own railway branch to the Centro-Atlântica Railway (FCA) network to ensure efficient product transportation.

With the upcoming public hearing representing the next major milestone in the preliminary environmental licensing process, Brazil Iron continues to strengthen a business model that combines foreign investment, technological innovation, and industrial decarbonization, positioning Bahia at the center of the global map for the next generation of sustainable mining.

Source: Brazil Iron Invests US$5.7 Billion in Bahia to Lead the Global Green Iron Race