Sul Americana de Metais (SAM), a company owned by Chinese holding Honbridge Holdings, has signed this week a commitment term with state prosecutors to advance its $2.1 billion iron ore project near the city of Grao Mogol in Minas Gerais state, as reported by SteelOrbis.
According to state prosecutors, the commitment term requires the company to fund environmental assessment reports, which should advise the project. The company is also expected to promote public hearing sessions with the interested communities, so they can be aware of the consequences of such a project.
The project site, which covers the cities of Grão Mogol, Padre Carvalho, Fruta de Leite, Josenópolis and Salinas, in the state of Minas Gerais aims to produce 27-30 million mt/year of iron ore, according to estimates from media reports. The project also includes an iron ore open pit, and a slurry pipeline.