The letters outline plans of the two Brazilian banks concerning the financial structuring of BAMIN and financial details of cooperation. In the signing of these letters, both BNDES and Banco do Nordeste have expressed their desire to collaborate with ERG, further the development of BAMIN, and help drive economic growth and further prosperity across all parts of Northern Brazil. The letters of intent are testament to the importance of BAMIN on the local Bahia economy, and for job creation and growth across Northern Brazil.

Both BNDES and Banco do Nordeste have a strong track record in financing significant infrastructure projects in Brazil, and the expertise of their executive teams will significantly benefit the development of BAMIN and FIOL 1.  Specifically, FIOL 1 will create a state-of-the-art logistics corridor across the State of Bahia and beyond, which will have a significant impact on multiple sectors. The corridor will foster socioeconomic development in regions across northern Brazil, creating thousands of jobs and connecting Brazil with global markets via new seatrades routes.

Benedikt Sobotka, CEO of ERG, said: I am delighted to announce the signing of letters of intent with BNDES and Banco do Nordeste. I welcome and thank both partners for their commitment to the development of the FIOL 1 railway and logistics corridor. The project will bring greater economic growth and prosperity to the region, as well as help to boost the production of high-grade iron ore at ERG’s Pedra de Ferro mine. We intend to work with the full and wider range of our local partners and stakeholders across all business sectors to realise the project’s full potential, and are committed to further transforming Bahia State into a key driver of Brazil's economy.”

The related letters of intent were signed during the ceremony in Ilhéus in July to commemorate the start of construction works on Lot 1F of the West East Integration Railway (FIOL 1), which was attended by President of Brazil, Lula da Silva; the Governor of the State of Bahia, Jerônimo Rodrigues; the Chief of Staff of the Presidency and former Governor of the State of Bahia, Rui Costa dos Santos; the country's senators, ministers, secretaries of the Bahian government; councillors from the south of Bahia; and ERG’s international partners.