#Brazil #Cedro Participações #Itaguaí Port #Brazilian Mining #Itaguaí

Historic Win for Cedro Participações at Itaguaí Port Auction

On December 18, 2024, Cedro Participações secured a major victory at the auction for the ITG-02 area at the Port of Itaguaí, located in Rio de Janeiro. This auction marked a significant moment for the Brazilian mining sector, as the company became the first purely Brazilian entity to achieve this milestone through its BRL 3.7 billion investment plan aimed at enhancing the country’s mining infrastructure. This new development covers approximately 350,000 square meters and aims to establish a terminal designed for the storage and handling of solid mineral bulk goods, with an impressive projected capacity of 20 million tons annually.

The planned construction of this port terminal is scheduled to begin in 2027, with operations intended to commence by 2029. Situated strategically between the operations of industry giants Vale and CSN, this terminal will offer direct access to the MRS rail network, further streamlining the logistics for mineral exportations.

Lucas Kallas, Chairman of Cedro Participações’ Board, emphasized that this project is vital not only for the company’s growth but also for enhancing the overall efficiency and sustainability of the mining industry as a whole. "The terminal aligns perfectly with Cedro's growth and sustainability strategy, as well as the broader objectives of the industry," Kallas noted.

Historically, small and medium-sized mining firms have relied heavily on ports owned by larger corporations, which has often resulted in logistical challenges due to limited storage capacities. Cedro’s new terminal is expected to provide much-needed relief from these constraints, thereby eliminating potential bottlenecks for smaller operations that risk production capacity limits in the coming years.

Kallas added, "We will achieve greater efficiency and competitiveness while fostering economic development in the Quadrilátero Ferrífero region and along the Rio de Janeiro coast. This investment not only benefits smaller companies but also the industry leaders, expanding export growth avenues.”

The auction is noted as the largest in history for the Brazilian mining sector, according to Brazil's Minister of Ports and Airports, Silvio Serafim da Costa Filho. The significant financial backing reinforces the strategic importance of this project for the mining industry and Brazil’s overall economic growth.

Adding to this excitement, Fabiano Carvalho, Vice President of Trade Strategy and Projects at Cedro, remarked on the potential economic impact of the new terminal: “Acquiring this port will create new business opportunities, expand operational reach, and encourage future projects that can help facilitate mineral exports.”

As the auction has been described as a watershed moment, José Carlos Martins from Cedro reflected on its historical context by stating, “Two hundred and seventeen years after Brazil opened its ports, we are witnessing a noteworthy historical milestone.”

The expected development will not only increase the export capacity of minerals but is projected to create around 2,800 direct and indirect jobs during both the construction and operational phases. Over the next 35 years, Cedro anticipates that the project will generate up to BRL 1.2 billion in municipal tax revenue.

Moreover, Cedro Participações is also looking to enhance logistical capabilities by developing a railroad branch, further improving the transport of iron ore from the Serra Azul area within the Quadrilátero Ferrífero region. This concerted effort demonstrates a commitment to infrastructure development that is pivotal to the logistics of the Brazilian mining sector.

In alignment with Cedro's commitment to environmental responsibility, the new terminal will implement eco-efficient standards and stringent protocols for resource utilization and emissions control. Kallas firmly stated, “This is the Cedro way of doing business. We aim to enhance sector competitiveness while adhering to the highest environmental and social responsibility standards.”