Pará state grants preliminary license for US$80mn iron ore project

Brazil’s Pará state approved the preliminary license for Ligga's 518mn-real (US$84mn) Ferro Sul iron ore project.

The preliminary license was approved by environment and sustainability secretariat Semas and is considered the first step in the environmental licensing process.

The project is designed to produce 8Mt/y of iron ore, a Semas spokesperson told BNamericas.

The project comprises an open-pit mine and a processing plant in the municipalities of Curionópolis and Parauapebas. A rail branch will connect the project to the Carajás railway operated by mining giant Vale, added the spokesperson.

A project timetable has not been presented as other licenses are pending.

In Brazil, licensing involves three stages. The first is the preliminary license and includes the environmental impact study and the economic, social and environmental feasibility of the project.

The second is the installation license, which allows some installations outlined in previously approved programs and plans, and the third is the operating license.

According to estimates by mining association Ibram, Brazil's mining sector will receive investments of US$64.5bn in 2024-28, with iron ore accounting for the largest share at US$17.3bn.