Cedro Participações Signs Concession Agreement for Itaguaí Port, Enhancing Brazil's Mining Competitiveness

Cedro Participações Signs Major Concession Agreement for Itaguaí Port

On February 21, 2025, Cedro Participações formalized its concession agreement for the Itaguaí Port located in Rio de Janeiro, marking a pivotal moment in Brazil’s mining industry. The event was graced by the presence of President Luiz Inácio Lula da Silva and Minister of Ports and Airports, Silvio Costa Filho. This strategic agreement positions Cedro as the first fully Brazilian-owned mining company to implement vertical integration within its operations, demonstrating a commitment to both economic growth and environmental sustainability.

During the signing ceremony, Lucas Kallas, Chairman of Cedro’s Board, emphasized the significance of the port in enhancing Brazil's mining competitiveness on the global stage. Kallas stated, “This new route will not only increase the competitiveness of Brazilian mining but will also provide substantial benefits for the environment and the country's infrastructure.” He elaborated that the initiative aims to reduce daily truck traffic by removing up to 5,000 trucks from the roads, thereby decreasing CO2 emissions by over 40,000 tons.

Cedro plans to invest a substantial R$ 3.6 billion into developing a terminal dedicated to storing and transferring mineral bulk products at the Itaguaí location, known as “Porto do Meio.” This facility is expected to handle up to 20 million tons of cargo annually, sprawled across approximately 350,000 square meters.

Kallas highlighted the project's anticipated impact on local employment, noting, “The new terminal will create approximately 2,800 direct and indirect jobs during its construction phase, with an additional 2,800 jobs once the facility is operational.” This investment also encompasses a dedicated railway branch and terminal operations, which will require over R$ 1.5 billion in private investments.

President Lula commended Cedro’s initiative and Kallas' decision to invest in Brazil, acknowledging, “I appreciate entrepreneurs like Lucas who are committed to investing in our country. It’s essential to recognize integrity and effort beyond mere words.” Lula stressed that Brazil is nurturing a positive environment for investments, invoking confidence in the country’s growth prospects despite any prevailing pessimism.

The terminal will also facilitate the export of high-quality iron ore pellets, which have been shown to reduce carbon emissions in the steel industry by up to 50%. Fabiano Carvalho, Commercial Vice President for Strategy and Projects at Cedro, remarked, “This port embodies our commitment to sustainable mining, adhering to the best environmental practices throughout the construction and operational phases.” The project is positioned to enhance the export and shipment capacities of Brazil’s premium iron ore to markets in the Middle East and Asia.

Construction is set to begin in 2027, with operations expected to commence in 2029. This landmark project establishes Cedro Participações as the first privately-owned Brazilian iron mining company with direct access to maritime facilities, paving the way for a new era in the local industry.

Minister Silvio Costa Filho noted the significant developmental prospects the terminal will bring to the Itaguaí region. He referred to this initiative as “the largest auction in the history of Brazilian ports,” projecting initial investments of R$ 3.6 billion that could escalate to nearly R$ 10 billion over time and promising job creation for the local populace.

Labor Minister Luiz Marinho emphasized the job creation imperative under President Lula's administration, stating, “In the last two years (2023 and 2024), we have facilitated the creation of over 2.1 million jobs through signed contracts across the nation.” He reaffirmed the commitment to job growth and the solid recovery of the Brazilian economy, stating that the government’s backing will enable all willing individuals to find employment.

In summary, the concession agreement for the Itaguaí Port marks a significant leap forward for Cedro Participações and the Brazilian mining sector. With a focus on sustainable practices and local job creation, this project not only promises to bolster Brazil’s mining industry but also heralds a brighter economic future for its people.