By Gabriel Garcia
June 17, 2026

Brazil Iron, the Anglo-Brazilian mining company that has not yet begun production in Brazil, says it has already secured highly committed offtake agreements for the sale of green iron to buyers in Asia and Europe.

According to Emerson Souza, Vice President of Institutional Relations at Brazil Iron, the agreements represent approximately ten years of production from the project the company intends to develop in the state of Bahia and are worth approximately US$30 billion.

“We already have, in fact, two highly committed offtake agreements corresponding to ten years of production of this green iron product. This gives us contracts worth approximately US$30 billion in offtake agreements,” he said.

The statements were made during Mapa da Mina, CNN Brasil’s program dedicated to the mining industry.

Offtake agreements are contracts for the future purchase of products signed before production begins.

In the mining industry, they are generally regarded as important instruments for enabling large-scale projects because they help demonstrate market demand and provide greater confidence to lenders, investors, and potential partners.

In Brazil Iron’s case, the agreements are considered a central part of the company’s strategy to bring forward a US$5.7 billion project in Bahia focused on the production of HBI (Hot Briquetted Iron).

HBI is a type of pre-processed iron used as a raw material by the steel industry. The company’s proposition is that HBI produced in Brazil can help global steelmakers reduce carbon emissions, particularly at a time when the steel industry is seeking alternatives to the intensive use of coal.

Souza stated that the contracts contain confidentiality clauses and therefore he could not disclose the names of the companies involved. However, he noted that the buyers include both steel producers and end-use industrial companies.

“What I can say is that our customers include both steelmakers and end-user industries. Our buyers are basically located in Asia and Europe. These are the markets most interested in this product,” he said.

Demand for HBI and other lower-emission feedstocks has been increasing as governments, investors, and consumers push for industrial supply chains with lower carbon intensity.

Steelmaking is one of the most difficult industrial sectors to decarbonize and still relies heavily on metallurgical coal in traditional steel production routes.

In this context, companies capable of producing high-grade iron ore, pellets, and reduced iron with a lower carbon footprint are seeking to position themselves strategically in the global energy transition. Europe is regarded as one of the most important markets due to its stricter climate targets and the implementation of mechanisms to charge for carbon emissions embedded in imported industrial products.

In addition to the future sales agreements, Brazil Iron is also holding discussions with BNDES, the Brazilian Development Bank. According to Souza, negotiations are still at an early stage, but there is a possibility that the bank may participate in the project.

“There is a possibility that BNDES could participate in our business,” the executive said, adding that the bank’s potential involvement would be beneficial for the company.

This comes as BNDES seeks to expand its role in financing critical and strategic minerals, including through BNDESPar, the bank’s equity investment arm. The institution has been evaluating opportunities to become a shareholder in mining companies developing projects in Brazil, particularly those related to the energy transition, decarbonization, and domestic value addition.

For Brazil Iron, the participation of the state-owned bank could strengthen both the financial and institutional foundations of the project.

The company’s project is located in Bahia and envisions the integration of mining operations, mineral processing, pellet production, and HBI manufacturing. Brazil Iron states that the project will be based on high-grade iron ore and will take advantage of the abundant renewable energy available in Brazil’s Northeast region.

The company estimates an investment of US$5.7 billion.

Despite the commercial progress reported by the company, the project must still overcome several key milestones before becoming operational. These include securing financing, advancing environmental licensing, defining the necessary logistics infrastructure, ensuring the supply of natural gas or alternative energy sources, and certifying the product’s carbon footprint.

The technological route proposed by the company initially relies on natural gas to produce HBI with significantly lower emissions than the traditional coal-based process. Brazil Iron also says it is studying a future transition to green hydrogen and the implementation of carbon capture technologies.

HBI is considered an intermediate product between iron ore and steel. It is produced from Direct Reduced Iron (DRI) and then compressed into briquettes to facilitate transportation, storage, and industrial use. Due to its higher metallic content and compatibility with lower-emission steelmaking routes, HBI is viewed as one of the leading solutions for the decarbonization of the global steel industry.

If successful, the project could position Bahia in a new stage of the global steel value chain—not only as a supplier of raw materials but also as a major production hub for low-carbon iron.

Photo: Disclosure

Source: Brazil Iron says it has US$30 billion in offtake agreements secured with Asia and Europe.