Ahead of the quarterly this week, I saw this article released at...

Ahead of the quarterly this week, I saw this article released at the beginning of October. Not really anything we did not already know:

Data released by the National Mining Agency (ANM) show that until the month of September, the turnover of iron ore producing companies in Bahia exceeded R$ 470 million, against R$ 25 million achieved throughout last year, representing a growth of more than 1,700% in its operations. Despite the expressive growth, the difficulty in transporting production is an obstacle for the sector as a whole.

This increase is due to the start of production this year by large companies in the Bahian market, such as Bamin and Tombador Iron, which, together with Brazil Iron – a company that already operated in the state – increased iron ore production in the state. Bahia. Growth should continue over the next few years with the arrival of Colomi Iron – in the process of being installed in the north of the state – and also with new areas with potential for the production of iron ore that continue to be prospected by CBPM and other entrepreneurs in the sector around the Fiol (West-East Integration Rail) tracks.

According to the president of Companhia Baiana de Pesquisa Mineral, Antonio Carlos Tramm, this increase confirms that mining will occupy an increasingly prominent position in the economic development of Bahia, in the generation of jobs and taxes. “Studies carried out by CBPM show that the central-west of Bahia, where Caetité is located, is rich in iron ore, uranium and other minerals. In the wake of the West-East Integration Railway (FIOL), CBPM is already working to attract more investments to opportunities identified in the region and also in studies of new mineral deposits 100 km away on each side of the tracks”, says Tramm .

The tracks of FIOL's first stage run from Caetité to Porto Sul, in Ilhéus, and should place Bahia in the select group of national exporters of iron ore, a commodity that represents approximately 4% of Brazilian GDP.The good result of the sector also represents an increase in revenue for municipalities with mineral production, which receive 60% of the CFEM (Financial Compensation for the Exploitation of Mineral Resources), a contribution paid by the mining companies. Until September 2021, the contribution referring to all ores produced is already over 114 million, an amount that exceeds the amount collected during the entire year of 2020.

Logistics is still an issue The increase in production is expressive, however, transport logistics are still deficient and directly impact the price and time for the flow of production. The problem, already faced by mining companies that started a long time ago, now also affects Tombador Iron, which recently started production in the municipality of Sento Sé. It is necessary to carry out more than 800 truck trips, of 700km each, to transport more than 35 thousand tons of ore from Sento Sé, where the company's mine is located, to the Inácio Barbosa Maritime Terminal, in Barra dos Coqueiros – Sergipe. In total, the more than 560 thousand km traveled would make it easy to reach the Moon (distant 384,000 km from Earth) or, if you prefer, make 44 turns around the Earth (12,700 km each).

Tombador Iron divides its production between the domestic market – also sent by truck to the Steel Complex in Minas Gerais – and the foreign market, sent to the port of Sergipe. According to the company, two shipments have already been made and the estimate is that the number is one per month. “Tombador Iron is a small mining company and is in the production ramp-up phase. In other words, it is the stage where the production curve is tested until the crushing and classification plant (dry process and without tailings) reaches its planned production capacity. After the ramp-up phase, our estimate is to carry out one Handysize vessel (35-38 thousand tons) per month”, he explains.

In a statement, Tombador stated that investments in the state's rail network would contribute to improving the flow of production, however, the company would not be able to afford the necessary investment. “Since Tombador Iron is a small project, we understand that the volumes to be exported, by themselves, do not make a railway project of our own viable”, informed the company's press office.

According to the president of CBPM, “Transporting by truck is expensive, time-consuming, wears out the roads and pollutes much more than if transported by train”, he argues. He also highlights the difficulty with regard to logistics and also the commercial competitiveness of Bahian production, due to additional expenses with transport. “Resources such as iron ore become economically more viable with the availability of a functioning railway network, which encourages the implementation of new mining ventures, generating more economic and social development for the state of Bahia. Let the Train come!” says Tramm.

https://www.trbn.com.br/materia/I46483/faturamento-do-minerio-de-ferro-baiano-cresce-1-700-em-2021