Cedro wins auction to take over terminal at the Port of Itaguaí

On December 18, 2024, Brazil Journal reported that Cedro Mineração had won an auction on B3 - the Brazilian stock exchange - for a 35-year concession for one of the port terminals in Itaguaí, Rio de Janeiro.

With this, Cedro guarantees the flow of its iron ore at a time when all the major mining companies are investing in increasing production, with the risk of a logistical bottleneck later on.

The project foresees an investment of between R$2.8 billion and R$3 billion in the construction of a port from scratch, with a capacity to handle 25 million tons a year and expected to be ready within three years.

The investment comes at a time when Cedro is undertaking an expansion to increase its production from 7 million to 22 million tons a year by 2028 and also to provide an outlet for third-party ore.

Today, around 70% of Cedro's production is sold to competitors such as Vale, CSN and Trafigura, who then resell the ore abroad using their own ports.

Cedro expects the ports of the big mining companies to reach their maximum capacity within three years, due to greater demand from abroad.

The terminal will be connected to the Iron Quadrangle in Minas Gerais by an existing MRS Logística railroad. When the project is completed, Cedro will also start exporting, and estimates that around two thirds of the port's throughput will come from its own production and one third from third parties.

The full article can be read here.