Sul Americana de Metais (SAM), the Brazilian subsidiary of Chinese mining company Honbridge Holdings, reported on Monday that it has obtained approval from the National Mining Agency (ANM) for a $2.1 billion iron ore project in the northern region of the state of Minas Gerais. The company can now process for other steps, such as obtaining the Previous Licence and the Installation License and developing basic engineering.

The project will extract low-grade ores (ores with an average iron content of 20%) and convert them into high-quality ores, with an annual output of 27.5 million tons of concentrates. The project engages in fostering a platform for the local economic and social growth, said SAM.

It is expected to generate 6,200 new direct jobs during the peak of the project’s implementation stage and create 1,100 more jobs during its operation.