en.Wedoany.com Reported - Portuguese construction and engineering group Mota-Engil Engenharia e Construção, S.A. and Eurasian Resources Group (ERG) are in the final stages of negotiations to acquire Brazilian iron ore and infrastructure assets, with a final agreement expected within the coming weeks. The acquisition involves ERG's Brazilian subsidiary, Bahia Mineração (Bamin), which holds the Pedra de Ferro iron ore project in Bahia state, along with associated logistics infrastructure.
Founded in 1946 and headquartered in Porto, Portugal, Mota-Engil is a comprehensive engineering and construction group operating in over 30 countries, with activities spanning construction, transport infrastructure, energy, mining, and waste management. Eurasian Resources Group (ERG) is a global diversified natural resources group headquartered in Luxembourg, involved in the extraction and processing of iron ore, copper, cobalt, aluminum, and other mineral resources, with significant assets in the Democratic Republic of the Congo and Kazakhstan.
The core asset in these negotiations—Bahia Mineração (Bamin)—is ERG's Brazilian subsidiary, holding the Pedra de Ferro iron ore project in Bahia state, which is expected to have an annual production capacity of 26 million tons. Additionally, the transaction includes the construction of sections of the West-East Integration Railway (Fiol) and the development of the Porto Sul port project. The total investment for Bamin-related projects is estimated at approximately $5 billion.
The negotiations were originally scheduled to be completed in the first half of 2026 but have been delayed due to ongoing corporate restructuring within the ERG group. At the end of May this year, the families of ERG founders Patokh Chodiev and Alexander Machkevitch sold their respective stakes of 18.6% and 20.7% to Nature Energy Solutions Ltd., controlled by Kazakh businessman Shakhmurat Mutalip. Following the transaction, the Kazakh government retains a 40% stake in ERG, Nature Energy Solutions holds 39.3%, and the remaining shares are held by the heirs of entrepreneur Alijan Ibragimov. This restructuring has drawn attention from the U.S. State Department, which has expressed concerns over potential links to sanctioned Russian entities.
At the domestic level in Brazil, the federal government is actively promoting the completion of the negotiations. The board of the Brazilian Merchant Marine Fund (FMM) has approved financing of 6.6 billion reais (approximately $1.3 billion) for the Porto Sul project, which will be disbursed after the Mota-Engil and ERG transaction is finalized. Managed by the Ministry of Ports and Airports, the fund operates through public financial institutions such as the Brazilian Development Bank (BNDES) and Banco do Brasil, offering more favorable interest rates than the market.
If successfully completed, this transaction will enable Mota-Engil to acquire significant iron ore assets and associated logistics infrastructure in Bahia state, further expanding its footprint in Brazil's mining sector. At the same time, the Brazilian federal government is expected to unlock investments in logistics infrastructure linked to the mining project, driving regional economic development.
