The Ferro Verde (Green Iron) project, by Brazil Iron, is being developed in Chapada Diamantina (BA) and promises to transform the mining and steelmaking landscape in Brazil and worldwide. With an estimated investment of US$ 5.7 billion, the undertaking is advancing towards the production of Hot Briquetted Iron (HBI) with very low carbon emissions, the so-called green iron. The proposal is to produce raw material suitable for the global transition of traditional and highly polluting coal-fired steel furnaces to Electric Arc Furnaces (EAFs), which can operate with low or no emissions energy.

The company has already invested more than R$ 1.7 billion in Bahia and is in the final phase of the project’s Bankable Feasibility Study (BFS), with works expected to begin in late 2026. Ferro Verde includes three open-pit mines—Conceição, Jussiape, and Mocó—and is centered in the Bahian municipalities of Piatã, Abaíra, and Jussiape, standing out for certified mineral resources of 1.7 Bt, in addition to innovative practices in logistics, sustainability, and environmental recovery.

According to Rob Davies, CTO of Brazil Iron, the initiative has strong support from international investors, financial institutions, and export credit agencies (ECAs), with the goal of positioning Brazil as a global leader in the production of green iron—a fundamental resource for the decarbonization of the steel chain.

RESOURCES

With 433 km² of mining rights in Bahia, Brazil Iron holds one of the largest areas of iron ore occurrence granted to a foreign company in the country. The high-quality hematite formations are present in sequences ranging from the Archean to the Paleoproterozoic period of Chapada Diamantina and extend over a range of approximately 60 km, ensuring the scale and continuity of the deposit.

With 433 km² of mining rights in Bahia, Brazil Iron holds one of the largest areas of iron ore occurrence granted to a foreign company in the country. The high-quality hematite formations are present in sequences ranging from the Archean to the Paleoproterozoic period of Chapada Diamantina and extend over a range of approximately 60 km, ensuring the scale and continuity of the deposit. In addition to the more than 100 km of exploration drilling completed in the region, the project has already completed metallurgical studies in three countries – Brazil, Germany, and the United Kingdom (UK). The results of these analyses, according to Davies, consistently demonstrate the project’s ability to produce a concentrate suitable to support subsequent pelletizing and HBI production operations, through Direct Reduction (DR) technology. The integrated operation includes the mines, a 120 km long railway branch, a pelletizing plant, and the installation of the HBI plant at Porto Sul, on the coast of Bahia.

In June 2025, the company announced a 24% increase in mineral resources, with certification by the Canadian standard NI 43-101. With this, the total resources are now 1.7 Bt, 24.08% above the 1.37 Bt previously verified.

The conclusion of the BFS is scheduled for the first quarter of 2026. The Mining Decree was approved by the ANM (National Mining Agency) and the project is in the process of obtaining the Installation License (LI) from Inema (Institute of Environment and Water Resources of Bahia). Construction is scheduled to begin in late 2026.
The US$ 5.7 billion financing will come from a combination of equity, debt, and ECA support, with support from institutions with assets exceeding US$ 10 trillion. Thus, Davies states that, at this time, the company has no plans for an IPO.

Currently, the project already employs approximately 240 people, including 133 direct jobs.
“At the peak of construction, the development of the mine, the logistics system, and the industrial units should create approximately 53,000 direct and indirect jobs,” estimates the CTO.

BENEFICIATION

The ore processing will follow these steps:

• Primary crushing to reduce the initial size of the Run-of-Mine (ROM) ore
• Secondary crushing for further size reduction, preparing the ore for grinding
• Grinding to release iron particles
• Pre-concentration through magnetic separation to remove significant gangue early in the process
• Regrinding to achieve the particle size required for efficient flotation
• Flotation for final concentrate cleaning, impurity removal, and production of high-quality iron ore

“This process route will produce pellet feed with 67.5% Fe and extremely low contaminant levels, making it ideal for the production of direct reduced iron (DRI),” Davies assures.
The mining operation will include a tailings filtration system, eliminating the need for dams. The material will be stored for later use in mined pits, mixed with rock waste. The planned 8 Mtpa of concentrate will be transported by rail to port facilities, where it will be pelletized and processed to generate HBI. According to Davies, the DRI will contain approximately 94% iron content.

A current logistical bottleneck is the completion of Section 1 of the FIOL (West-East Integration Railway), which connects to Porto Sul. The construction of this section – granted to Bamin (Bahia Mineração), another iron ore producer in the state – was paralyzed and the works of Porto Sul itself are delayed.
Davies admits that FIOL Section 1 and Porto Sul are central to the planning of the Ferro Verde project, so alternative strategies are being evaluated with the state and federal governments to establish a viable logistics structure.

“The state of Bahia offers several port options that can enable an integrated world-class mining and HBI production system, aligned with our commitment to sustainability, efficiency, and long-term value creation,” says the executive.

INNOVATION

The internal transport logistics seem well resolved. At the mine, an IPCC (In-Pit Crushing and Conveying) system will be implemented, crushing ore at the mining face and replacing the transport of diesel trucks with electric conveyor belts. Developed in partnership with the German company RWE, this technology reduces direct (Scope 1) emissions of CO² equivalent and dust, while operating with clean energy.

For auxiliary equipment, Brazil Iron also plans to adopt an electric fleet, powered by batteries or diesel-electric hybrid equipment. The beneficiation process was designed to operate entirely with renewable energy sources, leveraging Bahia’s potential in this area, supported by wind and solar projects already in operation or under development near the mine and along the logistics corridor to the port.

In the future, Davies explains, the project will incorporate green hydrogen as a reducing agent, allowing the production of iron with zero carbon and supporting the complete decarbonization of the steel value chain.

SUSTAINABILITY

According to Rafael Genú, Brazil Iron’s Environment, Land, and Community Relations Manager, the technologies and environmental and social programs of the Ferro Verde project reflect the company’s clear commitment to responsible regional development.

On the environmental side, he highlights the dry stacking of tailings, dust emission control through mist sprayers, covered conveyor belts, polymers on access roads, and water management systems, including effluent and sewage treatment stations and drainage and water reuse processes for mining and industrial operations.

“These practices not only help protect regional water resources but also ensure a more rational use of water, an increasingly valuable resource, especially in Chapada Diamantina,” says the manager. On the social front, the project anticipates up to 53,000 direct and indirect jobs, including 5,000 for local residents during construction and operations. Detailed studies have been conducted to avoid impacts on cultural heritage, schools, health units, and, most importantly, to preserve caves classified as of maximum speleological relevance in the region.
Engineering decisions were guided by socio-environmental criteria, aiming to avoid forced resettlements and protect areas of high ecological value, such as the Priority Conservation Areas of Chapada Diamantina.

According to Genú, the project is aligned with a series of public policies and strategic government programs, including the National Mining Plan 2030, the “Light for All” program, and cultural support mechanisms such as the Paulo Gustavo and Aldir Blanc Laws.

“This institutional articulation seeks to maximize benefits for the local population and ensure that economic growth goes hand in hand with cultural appreciation, social inclusion, and environmental protection, in line with the best ESG (Environmental, Social, and Governance) practices and the expectations of an increasingly demanding market in terms of sustainability,” concludes the manager.