Brazilian iron ore miner Bahia Mineraçao (Bamin) is investing US$1.8bn in its Pedra de Ferro project which will produce 19.5Mt/y of concentrate from 2013, according to commercial director Gilberto Penna.

Pedra de Ferro is located in Caetite municipality, in northeastern Bahia state. “We have the full support of the state and federal governments to develop this area,” Penna said, adding that the operation will create new opportunities in the region and boost development in Bahia, where GDP is low compared to other Brazilian states.

Construction is scheduled to begin in 2011 and the plant is expected to begin operating in the first quarter of 2013. Pedra de Ferro should be fully ramped up by 2014, according to the executive.

The project includes the construction of a rail system and a port terminal, which will be located in Ilheus, in southern Bahia.

Bamin is a 50:50 JV between Eurasian Natural Resources Corporation, from Kazakhstan, and Anglo-Swiss group Zamin Ferrous. The company controls four iron ore deposits in Bahia with an estimated 1.8Bt in reserves, according to Penna.

Penna was speaking at the Latin American Iron & Steel Trends conference, held in Rio de Janeiro from July 20-21.

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