Cedro Participações Signs Landmark Concession Contract for Port of Itaguaí with President Lula

Historic Contract Signing for Port of Itaguaí

On February 21, Cedro Participações secured a crucial concession contract for the Port of Itaguaí in Rio de Janeiro, marking a significant milestone for Brazilian mining. The event saw the presence of President Luiz Inácio Lula da Silva and Minister of Ports and Airports Silvio Costa Filho, highlighting the national interest in the project.

Chairman of Cedro Participações, Lucas Kallas, emphasized the vital role of the Port of Itaguaí in making Brazilian mining operations more competitive globally. He stated, "This new route will increase the competitiveness of Brazilian mining on the global stage and, at the same time, bring significant benefits to the environment and the country's infrastructure. Thanks to this move, we will remove five thousand trucks per day from the roads and reduce CO2 emissions by more than 40 thousand tons."

The company plans to channel a substantial investment of R$3.6 billion into building storage and handling facilities for mineral bulk solids. This new terminal, known as "Porto do Meio," is expected to have the capacity to manage 20 million tons annually over approximately 350 thousand square meters.

Kallas added, "This investment will not only generate construction jobs—about 2,800 direct and indirect positions—but will also create an additional 2,800 jobs once operations commence, significantly contributing to the social development of surrounding communities. Moreover, the railway branch and terminal will require investments surpassing R$1.5 billion."

During the ceremony, President Lula praised the tenacity and vision of Kallas in choosing to invest in Brazil's mining sector. "I would like to thank Lucas for deciding to invest here. I learned from my mother that we should gauge someone's integrity not just by their words but by their actions. From the moment Lucas expressed interest in investing in our mining industry, I knew I was dealing with a serious businessman who truly cares about Brazil's growth," stated President Lula.

Additionally, Cedro Participações intends to utilize the terminal for exporting high-quality iron ore, particularly pellet feed, which can reduce carbon emissions in steel production by up to 50%. Fabiano Carvalho, Cedro's Commercial Vice President, noted the terminal aligns with the company’s sustainability commitments. He expressed, "This port is all about sustainability. It will adhere to the finest environmental practices throughout its construction and operation, thus allowing us to export high-quality ore from Brazil to key markets in the Middle East and Asia."

Construction of the new terminals is slated to initiate in 2027, with operational commencement expected in 2029. This strategic investment makes Cedro Participações the first 100% Brazilian private iron mining company with a direct maritime outlet.

Minister of Ports and Airports, Silvio Costa Filho, highlighted the historical importance of this development, defining it as the largest auction in Brazilian port history, initiating with R$3.6 billion, which could total almost R$10 billion over time. He articulated, "During this construction phase alone, we are set to create 2,800 jobs, presenting unprecedented opportunities for the local populace."

Minister of Labor, Luiz Marinho, reflected on the job gains during Lula’s administration, noting that over 2 million jobs have been generated through signed contracts in the last two years. He also asserted that Brazil is on a trajectory of employment growth, with government support assuring opportunities for all workers, formal or informal.

In conclusion, the Port of Itaguaí project presents a strategic advancement for Brazilian mining as it harnesses investments, supports sustainability, and fosters community development, thereby setting a benchmark for future endeavors in the sector.