The Batista family, already prominent in the meatpacking industry and among the wealthiest in Brazil, is branching out.
They’re putting more than $1 billion into the mining sector. Last year, their company, J&F Investments, bought mines from Vale.
J&F operates in over 190 countries and employs more than 278,000 people worldwide.
The company has businesses in various sectors, including food, pulp, energy, mining, financial services, communications, cosmetics, and cleaning products.
These mines are in Mato Grosso do Sul, a state in Brazil. This move marks their first venture into metals and mining.
In addition to mines, J&F also acquired logistics operations worth $1.2 billion. Since taking over, the company has doubled production.
Last year, they produced four million tons of materials. The spokesperson reveals a plan to invest R$ 5.5 billion more. They aim to produce 10 million tons by the end of 2024.
Joesley Batista, 51, and Wesley Batista, 53, have diversified the family business. They own one of the world’s largest pulp companies.
They also own a bank and companies in the energy and cosmetics sectors. Currently, their largest holding is a 49% stake in JBS. It’s worth about $4.1 billion.
An Investment Plan of $8 billion
For future projects, the Batistas have revealed an expansive investment plan. They will invest R$38.5 ($8) billion in Brazil between 2023 and 2026.
As part of this plan, they will build 50 kilometers of rail lines. These lines will connect mines to their port, Gregório Curvo. Right now, trucks are used for this connection.
They have also launched a distribution center in Minas Gerais, Brazil. This center will cater to the domestic market.
Moreover, they will add 400 more barges to their fleet. These barges will carry iron ore to Uruguay’s Nueva Palmira port.
In March, J&F Mining performed a large-scale shipping operation. They exported 175,000 tons of iron ore to China in one go.
The operation used a Capesize vessel, which is the largest commodity carrier. This approach aims to cut down shipping costs.
The company is also working on an eco-friendly initiative. They are developing a product called “natural pellet.”
This product could replace up to 30% of traditional iron ore pellets in steel production. The result would be a 6-15% reduction in CO2 emissions.
The Batistas have built their empire rapidly. They have focused on acquisitions and are eyeing distressed assets.
These assets can be revitalized through strategic restructuring. It’s not clear yet if they will make further acquisitions in the mining sector.