The Brazilian development bank BNDES has approved a R580.4mn (US$304mn) financing for an integrated mining and infrastructure logistics project in Amapa state in the north of Brazil, at the mouth of the Amazon.


BNDES’s portion of the loan is making up 57% of the total investment required for the project. The borrower is MMX Amapa-Mineracao e Logistica, part of the MMX Minerao & Metlicos mining and metals group.


The funds will be used to develop a mine and install a processing unit with an annual production capacity of 6.5mn tons of iron ore in the city of Pedra Branca do Amapari (AP), 200km from Macapa, the capital of Amapa.


The facility will also be used to support two complementary projects aimed to provide the necessary logistical support needed for the efficient production, transportation and export of the iron ore.


The Santana port terminal will be upgraded and adjusted according to the requirements of the mine. The Amapa railroad (Estrada de Ferro do Amapa) will also be improved to ensure efficient transportation of ore to Santana port.


The project is being run by two MMX companies: Amapa Mineracao is the holder of mining rights of the Amapa iron mine, and the owner of Santana port. MMX Logistica do Amapa, is the holder of Ferrovia Amapa concession.