By Geraldo Bastos
June 18, 2026

Brazil Iron’s mega project in the interior of Bahia continues to move forward toward becoming one of the world’s most innovative mining ventures. In an interview with Mapa da Mina, a program by CNN Brasil Money, the company’s Vice President of Institutional Relations, Emerson Souza, revealed details about the current stage of environmental licensing, the investment structure, logistics, and the implementation schedule, which foresees construction beginning at the end of this year and green iron production starting in 2030.

According to the executive, the project involves investments of approximately US$5.7 billion, covering mining, mineral processing, railway infrastructure, and industrial facilities for the production of HBI (Hot Briquetted Iron), considered a strategic raw material for low-carbon steel manufacturing. “Our project is the first in the Americas to integrate mining and green iron production. It is a global innovation, but within the Americas it is an even greater milestone,” said Emerson Souza during the interview with Mapa da Mina, hosted by Editorial Director Daniel Rittner and CNN InfoMoney mining reporter Gabriel Garcia.

The project is being developed in the municipalities of Piatã, Abaíra, and Jussiape, in the Chapada Diamantina region, and stands out because of the nature of the ore extracted: ultra-high-purity iron ore that can be transformed into steel using significantly less energy, making it compatible with renewable energy sources. The final product is technically known as HBI (Hot Briquetted Iron), but the company has adopted the term “green iron” to make it easier for the market to understand.

“Only 3% of the world’s iron ore is suitable for producing this raw material for green steel,” Emerson Souza explained during Mapa da Mina, highlighting the rarity and strategic value of the Bahia deposit. The executive also emphasized that the steel industry is responsible for 8% of global greenhouse gas emissions, making decarbonization an urgent and growing demand in the international market.

Investment

The project calls for a total investment of US$5.7 billion, covering the entire production chain—from mining to HBI manufacturing. According to Souza, the investment includes a mineral processing plant at the mine site, an approximately 120-kilometer railway branch connecting to the existing rail network, and two additional plants in the port area responsible for converting pellet feed into pellets and pellets into green iron.

Even before the formal implementation phase begins, investors have already committed approximately R$2 billion to the project, which, according to the executive, demonstrates the market’s confidence in the project’s viability.

Environmental Licensing

The project is still awaiting its Preliminary Environmental License, the first formal stage of the environmental permitting process with the competent state authority. The Environmental Impact Assessment (EIA) has already been completed and submitted to the regulator. It was intentionally prepared by an independent institution, Senai Cimatec. “The goal was to ensure the highest level of technical expertise, technical quality, and a certain degree of independence in preparing the study,” the executive explained.

According to Souza, the next milestone is the public hearing. Once this stage is approved, the company expects to obtain the Preliminary License and move on to the implementation phase. He also emphasized the company’s approach toward local communities: “You cannot begin a project without understanding that, in the region where you are going to operate, you are the outsider. The people who live there are the true owners of that land.”

Offtake Agreements

One of the most significant announcements made during the Mapa da Mina interview was the existence of two signed offtake agreements covering all of the project’s planned initial production for the first ten years of operation. The total value of these agreements is approximately US$30 billion.
“Once we begin production, the first ten years are already fully committed,” Souza stated.

The buyers are located in Asia and Europe—regions where regulatory pressure for decarbonization is strongest. In this context, the executive cited the Carbon Border Adjustment Mechanism (CBAM), the European carbon border tax mechanism that has been in force since January 2026, as an important driver of demand for the product.

Regarding financing, Souza confirmed that the project’s initial financial structure is expected to rely primarily on foreign capital but indicated that participation by Brazil’s National Development Bank (BNDES) remains a possibility. “We have already begun discussions with BNDES. There is a possibility that it could participate in this project,” he said, adding that the bank’s involvement would provide not only financial support but also an important “government endorsement.”

Logistics: FIOL, Porto Sul, and Alternative Solutions

One of the project’s main challenges is transporting production. Brazil Iron’s primary strategy is to use the FIOL (West-East Integration Railway) and Porto Sul in Ilhéus—two infrastructure projects that have experienced decades of delays. When asked directly about the risk that the company’s schedule could outpace the completion of these projects, Souza acknowledged the uncertainty but maintained that FIOL and Porto Sul remain the preferred option.
“Considering our implementation and production timeline, as well as the time required to complete FIOL and build Porto Sul, we still have a viable window to wait for these projects to be completed,” the executive told Mapa da Mina.

If this logistics scenario does not materialize, the company has alternatives. Plan B involves using the FCA (Centro-Atlântica Railway) network, which, according to Souza, would require upgrades and restoration work but is already included in the railway branch that Brazil Iron plans to build—designed to connect both FIOL and FCA.

Timeline and Sustainability

Brazil Iron’s schedule is ambitious. According to Souza, the goal is to begin the implementation phase in late 2026 or early 2027, with production scheduled to start in 2030. The company has certified reserves of 1.7 billion tonnes of iron ore, enough to support more than 20 years of mine life, and projects an initial production capacity of 5 million tonnes of HBI annually, with the potential to double that volume during a second phase.

Another highlight of the Mapa da Mina interview was the project’s environmental approach. Souza stated that the Green Iron Project will operate without any tailings dams, adopting dry stacking technology throughout the operation. Internal material transportation will be carried out exclusively by more than 16 kilometers of long-distance conveyor belts powered by renewable energy, eliminating the need for haul trucks during operations.

The company has also incorporated into the project a 220-meter-long land rehabilitation machine capable of restoring mined areas and making them suitable for agriculture within seven years. Altogether, the operation includes 17 sustainability initiatives developed with the support of the German company RW, a global reference in sustainable mining.

Photo: Disclosure
Source: Brazil Iron Targets 2030 for Green Iron Production in Bahia with US$5.7 Billion Investment