Eurasian Resources Group (“ERG” or “The Group”), a leading diversified natural resources group headquartered in Luxembourg, announces that its wholly-owned Brazilian subsidiary BAMIN has announced the consortium that will perform the Lot 1F of works for the construction of the railway that will create a new West-East logistics export corridor for Bahia and Brazil. The service order to start the execution of the 127-km stretch, which will pass through the municipalities of Ilhéus, Uruçuca, Ubaitaba, Gongogi, Itagibá, Aurelino Leal and Aiquara, should be signed within 15 days.

The works on the stretch of railway will receive an investment of R$ 1.1 billion and will be executed by the TCR-10 Consortium, formed by the Brazilian company Tiisa and the Chinese company CREC-10. The consortium will be responsible for carrying out the construction service and railway works, including infrastructure and superstructure, over a period of 36 months. During this time, it is expected that around 1,200 jobs will be generated, with a rolling hiring process, as the works progress in the municipalities that make up the Lot 1F.

“Since we signed the FIOL 1 concession contract in September 2021, we have been working with full dedication so that we could be here today celebrating this important partnership, which will be responsible for completing the first stretch of works on one of the most important logistics projects in Brazil. Together, BAMIN, ERG and the State Government have built a solid relationship with a common goal, which is to bring opportunities and development to Bahia”, highlighted Benedikt Sobotka, CEO of ERG, the parent company responsible for BAMIN’s activities in Brazil.

Connecting the Bahia cities of Caetité and Ilhéus, where the South Port is located, FIOL I will be 537 km long, crossing 20 municipalities, and is expected to be concluded and brought into operation in 2027. The railway will have the capacity to handle 60 million tons of cargo per year. BAMIN will use 40% of this potential, for the transportation of iron ore produced by the Pedra de Ferro Mine, making the rest available for the transportation of the production of other mining companies, agribusiness and other segments.

“In the coming years, we will dedicate all our efforts to carry out the works of this project safety and sustainability, which are essential for the socioeconomic development of Bahia and Brazil. With the new step we took today, we hope that in 60 days we will already have hundreds of people in the field working”, pointed out Erik Gaustad, President of BAMIN Americas.

“Bahia has an immense mineral potential and this is a great start. The FIOL will bring to the state more competitiveness and expansion for the businesses and will position Bahia in a strategic way within the country”, complements Eduardo Ledsham, CEO of BAMIN.

The consortium announcement ceremony was held at the Administrative Center of Bahia, with the acting governor of Bahia Geraldo Júnior in attendance. “I am sure that the materialization of this act today is important for our history. A project that moves the lives of Bahians and our economy”, Geraldo Júnior remarked.

“Today is a memorable day not only for the state of Bahia, but for all of us at BAMIN. We are sharingthis moment with immense satisfaction. The hearts of everyone at BAMIN are full of joy”, shared Sérgio Leite, CEO of BAMIN Ferrovia.

PROJECTS – BAMIN is also responsible for the construction of the Porto Sul Port in Ilhéus, a deep-water terminal, which will be able to receive ships with a capacity of up to 250 thousand tons and is designed to handle up to 42 million tons annually. BAMIN will use 60% of the operational capacity of the maritime terminal, making 40% available for other cargoes, such as agribusiness and other mining companies. Once the railway and port are concluded, in 2027, this corridor will represent a new vector of economic development for several production sectors.

With the construction of the logistics corridor Railroad – Port, the State of Bahia will occupy a new and important dimension in the national economy, generating wealth, distributing income and improving the quality of life of its population, creating opportunities for regional producers and potentializing the agribusiness and mining production chains along the way.

CONCESSION – The BAMIN Ferrovia’s contract to build the 537 km long FIOL I was signed in September 2021 with the Ministry of Infrastructure of the Federal Government. The sub-concession of BAMIN Ferrovia has a duration of 35 years, five for construction and 30 years for operation. The West-East Railroad was planned, nationally, in three stages. BAMIN Ferrovia won Stretch 1, between Caetité and Ilhéus, during the auction held in April 2021. Segments 2 and 3 are under the administration of the Federal Government.