SAM Metais and CGN Brasil sign a protocol of…

By SAM and CGN Brazil

This is a machine translation of the press release originally published in Portuguese. 

Belo Horizonte – Sul Americana de Metais (SAM) and CGN Brasil Energia signed, this Tuesday afternoon (27), a protocol of intent with the Minas Gerais State Secretariat for Economic Development (SEDE) for development, construction and operation of a new solar park in the northern region of the state, to be started in 2024. The agreement also provides for the formation of a joint venture between the two companies, establishes an investment of 3 billion reais and the generation of 2,500 jobs in the peak of the work.

The park, which should have an installed capacity of approximately 800MW, will initially be used to meet the demand of SAM’s Block 8 Project, for the extraction and processing of iron ore, which will amount to 1.5 million MWh/year.

With a focus on carbon neutrality and sustainable development, SAM is committed to using, from the fifth year of operation of the Block 8 Project, 100% renewable energy. “We were very happy with the signing of the document with the Government of Minas and CGN Brasil. Our investments in renewable energy reinforce SAM’s commitment to sustainability. In addition, they are part of a broader plan to contribute to attracting investments and diversifying businesses in the Northern region of Minas. The Block 8 project has established itself as a platform for regional development”, celebrates SAM CEO Jin Yongshi.

“CGN is the sixth largest producer of renewable energy in Brazil. In addition, large-scale renewable projects are a fundamental part of CGN Brasil’s business and are in line with the company’s strategic growth plan. Once the project starts, one or more renewable energy plants will be built (wind, solar or biomass), to meet the demand of the Block 8 Project. In addition, we signed a protocol for the plants to be located in the North of Minas Gerais, to serve the region as a whole”, says Silvia Helena Carvalho Vieira da Rocha, Chief Compliance Officer of CGN Brazil.

According to the Secretary of State for Economic Development of Minas Gerais, Fernando Passalio, the signing of the document aims to support the use of the great potential of the North of the state for the generation of photovoltaic solar energy. “Actions like this reaffirm our commitment to generating opportunities for the North of Minas. Today, we have sealed an important union of efforts between the government, SAM and CGN, which not only achieves a valuable investment for the region, but also a perspective of improving the local economy, generating employment and income for the population. In addition, it is a huge achievement to attract companies with social and environmental responsibility, which comply with the guidelines assumed by the Government of Minas in the Global Race to Zero Campaign, focused on decarbonization”.

Present at the signing of the document, the Secretary of State for Social Development, Elizabeth Jucá, emphasized the importance of the development of the North of Minas, which has so many vulnerabilities. “SAM will bring a social change in that region, but a virtuous change”, he evaluated.

About the Block 8 project

The Block 8 Project is mainly formed by a mining complex and a water dam. The current investment foreseen by SAM for the project is 2.1 billion dollars, making it feasible to extract low-grade iron ore (average of 20%) and transform the ore from the north of the state into a high quality product. The treatment of the material to be carried out on site will make it possible to increase its concentration from 20% to a content of 66.5%. The forecast is that 6,200 new direct jobs will be generated during the peak of the implementation phase of the Block 8 Project, and another 1,100 jobs during its operation, with annual production of 27.5 million tons of iron ore concentrate.

About CGN Brazil

CGN Brasil Energia e Participações SA is a multinational company in the energy sector, affiliated with CGN Energy International Holdings Co.Limited. The operation in Brazil started in 2019 after the acquisition of wind energy projects from Atlantic Energias Renováveis, in addition to two more solar parks and one wind farm, reaching an installed capacity of 1200 MW. Since the beginning of its activities, CGN Brasil has been increasing its investments in renewable energy in the country, which has led it to become the sixth largest renewable energy company in Brazil.