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Cedro Participações Wins Historic Auction for Itaguaí Port Expansion

On December 18, 2024, Cedro Participações solidified its position as a key player in Brazil’s mining industry by winning the auction for the ITG-02 area at Itaguaí port, a significant move for both the company and the local economy. This historic acqusition was held at the B3 headquarters in São Paulo, unveiling plans for a robust infrastructure investment that will serve the mining sector.

With a staggering investment of BRL 3.7 billion, Cedro aims to develop a terminal for storing and transferring solid mineral bulk goods. The proposed terminal will span over 350,000 square meters, with an impressive capacity to handle 20 million tons annually. Groundbreaking on this expansive project is scheduled for 2027, with operations set to commence by 2029.

Located strategically between major industry players, Vale and CSN, the new terminal will offer direct access to the MRS rail network, enabling greater efficiency in mineral transport. According to Lucas Kallas, chairman of Cedro Participações and Cedro Mineração, this initiative will not only position Cedro as the first 100% Brazilian private iron ore company to vertically integrate its operations but also facilitate direct maritime export access.

The impact of this development is projected to significantly boost both production capacity and export potential for Brazil's mining sector, particularly benefiting small to medium-sized mining companies. Currently, many of these firms are constrained by the need to utilize larger companies' port facilities, often facing bottlenecks and limited storage capacity as industry giants expand their operations.

Kallas noted that with the impending logistical constraints forecasted within five years, Cedro’s strategic expansion is both timely and necessary. "We are setting the stage for more competitive and efficient operations while fostering social and economic progress in the Quadrilátero Ferrífero region of Minas Gerais and along the Rio de Janeiro coast," he emphasized.

Support for this development is echoed by Fabiano Carvalho, vice president of commercial strategy and projects, who highlighted the potential for new business opportunities and expanded operational reach created by this infrastructure.

Cedro’s procurement of this port facility marks a key milestone for Portos Rio as well, the authority responsible for managing public ports in Rio de Janeiro. Francisco Martins, the chairman of Portos Rio, expressed optimism about the project’s socio-economic benefits, including job creation and increased tax revenues.

According to a Technical, Economic, and Environmental Feasibility Study (EVTEA), the project is anticipated to generate approximately 2,800 direct and indirect jobs during construction, along with a similar number through ongoing operations. Furthermore, the terminal is expected to generate local tax revenues of up to BRL 1.2 billion over a 35-year contract period.

Eduardo Couto, Vice President of Legal and Institutional Affairs at Cedro, emphasized the long-standing need for such infrastructure within the sector, stating, "This project signifies economic and social progress, being carried out with environmental responsibility in mind."

In alignment with Cedro's ESG (Environmental, Social, and Governance) principles, the new terminal will adhere to stringent eco-efficiency standards, ensuring sustainable resource use and emission controls. Kallas reassured stakeholders, stating, "This is how we conduct business at Cedro. We are developing a project that will increase competitiveness across the industry while meeting strict environmental and social responsibility standards."

As Brazil's mining sector continues to evolve, Cedro Participações is poised to play an influential role in shaping the future of mining operations in Itaguaí, promoting growth and innovation in a vital industry.