The UK-based, Brazil-focused company is planning to invest $5.7 billion in its “green” iron project in Brazil’s northeastern state of Bahia, seeking to capitalise on decarbonisation opportunities. The project targets production of up to 15 million tonnes/year of hot-briquetted iron, starting with a capacity of 5m t/y by 2030. In addition, initial capacity includes 7.5mt of pellet feed and 7.1mt of pellets annually.

In a Q&A with Kallanish, Brazil Iron founder and president Guy Saxton says the traditional Brazilian iron ore mining and export approach is reaching its limits, as Brasília seeks value-added exports and steelmakers around the world work to curb emissions. The new entrant is determined to develop a green iron industry in Bahia, taking advantage of world-class iron ore resources and an expanding renewable energy network.

The project, set to move towards construction this year, will use both renewables and advanced carbon capture and storage technology to cut emissions by 90%. Brazil Iron says it is also studying the transition to green hydrogen to ensure it reaches net-zero. The operation relies on an itabirite resource base of 1.70 billion t and promises a concentrate with 67.5% iron content – a specification it claims to be achieved by less than 3% of seaborne iron ore production worldwide.

Following investments of roughly $1.7 billion to date, Brazil Iron is awaiting its environmental licence, while finalising financing. The company could become a pioneer in domestic HBI production, unlocking Brazil’s potential to become a major global supplier of green metallics.

Q&A with Guy Saxton

Kallanish: Does the company believe Brazil can become a key player in the decarbonisation of the global steel industry?

Saxton: Absolutely. Brazil, and Bahia in particular, has the perfect mix to support the steel industry’s decarbonisation: very high-grade iron ore reserves and one of the cleanest energy matrixes in the world. Decarbonising global steel production depends on replacing blast furnaces with direct reduction technologies, such as hot briquetted iron. Since Brazil can supply the required ore and has abundant renewable energy, the country is well-positioned to move beyond being just a raw material exporter and become a global hub for green iron, which will help Europe and Asia meet their net-zero targets.

Kallanish: When does Brazil Iron expect to export its first shipment of HBI? Has the company already seen interest from customers?

Saxton: Full operations are expected to begin in 2030, in line with a development schedule starting in 2026. There is already strong and strategic demand. The company has secured long-term offtake agreements covering its first ten years of production with European and Asian customers. These partners are not only looking for the product itself, but for reliable access to supplies that is expected to become increasingly scarce over the next decade.

Kallanish: What are the advantages of trading HBI compared to pellets?

Saxton: The main advantage lies in value addition and environmental efficiency. While pellets still need to be processed in a furnace – consuming energy and generating CO₂ at the customer’s site – HBI is a ‘near-finished’ product. It has already gone through the reduction process. For customers, this means a significant reduction in the carbon footprint of steel production. From a logistics standpoint, HBI is dense, stable, and safe to transport by sea (unlike standard DRI, which has reactivity characteristics that demand additional precautions).

Kallanish: Are there similar projects to Brazil Iron’s in Brazil?

Saxton: Our project is unique. Brazil Iron stands out as the leading independent project designed from the ground up around the HBI route, with a clear focus on exporting to the premium green steel markets. It’s a business model built with decarbonisation at its core, integrating mine, a dedicated 120km railway, and state-of-the-art processing facilities in Bahia. By producing HBI from our high-purity ore, we are not just exporting raw material; we are exporting stored energy. This allows us to operate outside the traditional iron ore hubs and lead the global transition to low-carbon steelmaking with a product that is ready for the future of the industry.

Kallanish: Why have Brazilian mining companies been reluctant to produce HBI? Would it not make more sense to add value instead of exporting raw ore?

Saxton: Historically, large mining companies have focused on volume and scale in raw ore exports. Shifting to HBI production requires significant capex and a different operational mindset. Brazil Iron believes this traditional model is reaching its limits. The real value, and the highest market premium, lies in providing green HBI as the feedstock for the transition from coal to electric furnaces. Adding value in Brazil before export not only creates skilled jobs locally – with up to 55,000 positions expected at peak – but also allows the country to capture margins that are currently realised by other countries with either cheap gas or in-place steelmaking.

Gabriela Farhangi | UK

Fonte: Brazil’s iron business reaching limit: Brazil Iron exec.