CBA will invest BRL 4 billion by 2025 in bauxite production and development

After presenting a 1,900% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second quarter of this year, Companhia Brasileira de Alumínio (CBA) has already prepared investments for the next five years. The company will invest R$ 4 billion by 2025 to increase its production capacity and develop bauxite.

The company’s president, Ricardo Carvalho, stated that the resources will be divided evenly between each initiative. The bauxite production project, called “Projeto Bauxite Randon”, in Rondon do Pará (PA), still lacks an investing partner or long-term contracts to get off the ground. “We already have all the licenses granted, the audited reserves. Now, we are in the project’s feasibility phase. We are already talking to potential investors. The idea is to define the bauxite production by the end of next year”, stated Carvalho.

According to him, the major consumers of bauxite are China and countries in the Middle East. With the project’s expected extraction capacity of up to 18 million tons per year, it could supply these markets and would be the direct competitor of producers in Guinea, in Africa, today the largest exporter of bauxite. “The expectation is to begin by producing 4.5 million tons per year, and we can increase the production in modules of 4.5 million tons until reaching the capacity of 18 million tons per year.”

Carvalho added that the planned investments of R$ 2 billion are for the entire bauxite project, considering the development of the mine and the logistics part. “We are already talking to VLI, which manages the Carajás railroad, to discuss railway transportation. We are also going to build a terminal at the Port of Itaqui to export bauxite. This is all under analysis”, said the executive.

Source: Valor Econômico

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https://valor.globo.com/empresas/noticia/2021/08/18/cba-vai-investir-r-4-bi-ate-2025-em-producao-e-exploracao-de-bauxita.ghtml
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