CPX Mineração to invest in Bahía cement plant, Brazil

CPX Mineração and Bahía state government have signed a letter of intent to produce cement in the Brazilian state, according to local media.

Under the agreement, CPX will invest BRL400m-500m (US$192m-240m) in the construction of a 0.8Mta cement works in the municipality of Lajedinho.

"It is an integrated plant based on exploitation of limestone and cement manufacture to supply entire Bahía, which currently imports this product," said CPX president, Rodrigo Lara, adding that the company has mining areas the five regions of the country and announced further investment in cement production. In early September, the company announced similar cement initiatives in Formosa municipality, Goiás state. The two units are expected to enter service in 2014.

According to Lara, the brand of the cement is still being defined and will be announced shortly.

CPX Mineração Baiana is a subsidiary of CPX Brasil Mineração e Participação, which has a portfolio of large high quality limestone mines in the country.