Founded on February 23, 1961, by engineer José Corgosinho de Carvalho Filho, Companhia de Ferro Ligas da Bahia – Ferbasa began operations in Campo Formoso (BA) focused on chromite mining to supply the domestic industry. Within a few years, it expanded its activities with the start-up in 1963 of the metallurgical industrial complex in Pojuca (BA), dedicated to the production of ferrochrome for the steel industry, especially for special and stainless steels. Over its history, the company has consolidated a vertically integrated business model, combining mining, metallurgy, forestry assets and, more recently, renewable electric power generation. Ferbasa’s shares, traded on B3 under the tickers FESA3 and FESA4, are tied to a company that combines heavy industrial operations, natural assets and energy projects.

The core of Ferbasa’s business model is the production of ferroalloys, strategic inputs for the steel industry. The company is the only domestic producer of ferrochrome and supplies approximately 95% of the apparent consumption of the Brazilian market, in addition to accounting for around 2% of global production of this input. Its main portfolio includes high-carbon ferrochrome (FeCrAC), low-carbon ferrochrome (FeCrBC), ferrosilicon chrome (FeSiCr) and ferrosilicon 75 (FeSi75), in standard and high-purity versions. The operation is highly electricity-intensive and based on electric arc furnaces, with 14 furnaces installed in Pojuca that receive chrome ore, quartz, quicklime and other inputs from the company’s own mines and plants in Bahia.

Ferbasa structures its operations into three segments: ferroalloys, wind power and others. The ferroalloys segment concentrates the production and sale of chrome and silicon alloys and represents the main source of revenue, with net sales combining the domestic market and exports to several countries. The wind power segment encompasses the operations of subsidiary BW Guirapá, which groups seven special-purpose entities dedicated to the generation and commercialization of electricity from wind farms in Bahia, with a current physical guarantee of 73.5 MW for the 2022–2026 period. “Others” include forestry activities – such as standing timber and bioreducer sales – and mining with sales of chrome ore, chromite sand, quicklime and hydrated lime. This structure highlights an integrated chain that combines mineral extraction, metallurgical transformation, the supply of renewable inputs and (partial and future) self-sufficiency in energy.

On the production front, Ferbasa holds about 95% of Brazil’s chromite resources, with two major mining districts in the north-central region of Bahia: the Pedrinhas mine in Campo Formoso, an open-pit operation, and the Ipueira mine in Andorinha, an underground operation considered one of the country’s most modern in terms of technology and safety. In addition, the company operates a quicklime plant and two quartz mines in northeastern Bahia, which supply the Pojuca metallurgical facility. This verticalization enables control over a significant portion of the ferroalloy value chain, from exploration and mining (through subsidiaries such as Mineração Vale do Jacurici and Damacal) to final production, including Silbasa, focused on high-purity ferrosilicon alloys, and Reflora, dedicated to reforestation and charcoal.

Geographically, the operation is strongly based in Bahia, but Ferbasa has an international footprint in both revenue and corporate structure. In 2024, approximately half of net revenue came from Brazil, while the other half was generated by exports to Europe, the Americas and Asia, with notable markets including Japan, the United States and members of the European Union. The company has a wholly owned subsidiary in Colombia, Ferbasa & Co S.A.S, created in 2021, whose corporate purpose includes the production and sale of ferroalloys, mineral exploration and production, and activities related to coal and coke. In the forestry segment, Ferbasa owns around 64 thousand hectares, with approximately 25 thousand hectares of planted eucalyptus, and is the majority partner in Bahia Minas Bioenergia Ltda., a company focused on acquiring rural properties for eucalyptus cultivation and supplying charcoal under a long-term contract.

Ferbasa’s customer base is concentrated in large industrial groups. In 2024, Aperam, in the domestic market, accounted for about 40% of revenue, mainly in chrome alloys, while Marubeni Corporation, in the international market, represented about 32% of revenue, primarily related to silicon alloys. Domestic sales are conducted under monthly, quarterly or annual contracts, generally on an FOT basis (product delivered loaded onto the truck at the plant). In the international market, shipments are negotiated both on a regular and spot basis, with FOB sales through the Port of Salvador. Ferbasa also complies with specific transport safety regulations for markets such as the European Union and the United States, packaging products classified as dangerous, such as FeSi75 and FeSiCr, in big bags with safety instructions.

From a regulatory standpoint, Ferbasa reports that its main activities are not part of a market subject to specific concessions, but they are heavily conditioned by environmental licensing. Agencies within the National Environmental System (SISNAMA) at the municipal, state and federal levels act as oversight bodies, with emphasis on operating licenses, water use permits and various conditions. The company manages its social and environmental obligations through an Integrated Management System certified under ISO 9001, 14001 and 45001 standards, covering metallurgy, mining and forestry resources. In 2024, it invested around R$ 50 million in health, safety and the environment, including projects for atmospheric emissions control, waste management, rainwater drainage and expanded water reuse, in addition to the first independent assurance of its greenhouse gas emissions inventory.

In terms of environmental, social and governance practices, Ferbasa highlights a structured ESG agenda that encompasses both environmental and social responsibility fronts. On the environmental side, the company preserves approximately 45% of its forestry areas as native forest, above the legal minimum, including private natural heritage reserves (RPPNs), and invests in the recovery of degraded areas, gas burners in bioreducer furnaces and projects to reuse slag as a soil amendment, currently under review by the Ministry of Agriculture. On the social side, the “Aqui Tem Ferbasa” program benefited more than 100 thousand people in 24 municipalities in Bahia in 2024, with around R$ 17 million allocated to education, culture, sports, rural development, environment and health projects. A key governance differentiator is that its controlling shareholder is Fundação José Carvalho, a philanthropic organization that runs six schools of its own and socioeducational programs largely funded by Ferbasa’s dividends. For investors tracking FESA3 and FESA4 on B3, these elements shape the profile of an integrated industrial company with a strong base in natural resources, significant export presence and structured social and environmental policies.