Brazil Iron, CBPM partner to advance US$5bn Bahia iron ore project

UK-based mining firm Brazil Iron Mineração and Bahia state mineral company CBPMsigned an agreement to develop the US$5bn Fazenda Mocó iron ore project. 

CBPM a will act as a consultant for Brazil Iron, helping to solve bureaucratic issues and foster dialogue between the private sector and civil society to mitigate the potential backlash and encourage the region's development, a CBPM spokesperson told BNamericas.

Fazenda Mocó is expected to produce 10Mt/y of iron ore pellets.

Bahia has been trying to attract mining companies to diversify the economy.

"We're working tirelessly to attract the largest number of companies to our mining sector and this, in addition to bringing investment to the sector, will also bring investment in improvements to our rail infrastructure and ports to support this industry," governor Jerônimo Rodrigues told BNamericas in a recent interview.

However, the partnership has also led to criticism.

“We repudiate the agreement made without transparency in the terms and relationships established, just as we repudiate CBPM's partial stance in favor of Brazil Iron mining company and to the detriment of the rights of the people affected by the project,” the Movement for Popular Sovereignty in Mining wrote in an open letter.

"We demand the immediate opening of a debate with all those affected by mining in the state, about the current mineral policy and the need for instruments of transparency, control and popular participation, including with regard to CBPM," it added.