LHG targets 25 million tons of iron ore production with R$ 4 billion investment

The company aims to raise its current annual production capacity from 12 million tons to 25 million tons.

The Government of Mato Grosso do Sul has declared 845.9775 hectares of land located across 12 farm sections in Corumbá, owned by LHG under the control of the J&F Group, as being of public interest. The area will be used for the installation of a Long-Distance Belt Conveyor and a Railway Terminal and Product Storage Facility. The decision is considered part of the company’s expansion strategy launched after LHG took over mining operations in the region from Vale in 2022.

The designated logistics route passes through nine different properties, five of which are directly owned by LHG. The state administration has defined the project as a strategic investment and stated that the expropriation process may proceed in accordance with legal procedures, subject to prior valuation and fair compensation to rights holders.

Due to uncertainties surrounding investments in the Malha Oeste railway, the company has turned to waterway transportation as an alternative. In this context, LHG received financing approval of R$ 3.7 billion from the Brazilian National Bank for Economic and Social Development for the construction of barges and tugboats to strengthen transport along the Paraguay-Paraná Waterway.

Meanwhile, the Federal Government plans to launch a tender to open the railway line between Corumbá and Mairinque to private capital. To facilitate the concession process, the option of dividing the line into separate lots is also being evaluated. In addition, a new concession model is planned for the Paraguay-Paraná Waterway, aiming to carry out targeted dredging works and improve navigation conditions.

LHG’s increase in iron ore production capacity is expected to accelerate the restructuring of logistics infrastructure within Brazil’s export-oriented mining sector.