Mining companies want to make Brazil a global powerhouse for the energy transition

Brazilian mining stakeholders are seeking to make the country a global powerhouse in the production of strategic minerals for the energy transition and food security.

Recognized worldwide for producing high-quality iron ore, Brazil also has great potential for copper, graphite, lithium, nickel, phosphate, potash, uranium and rare earth elements.

“Brazil is already on the radar of global investment funds interested in exploring the country’s potential in minerals associated with the energy transition,” Miguel Nery, mineral exploration director at the Brazilian Association of Mineral Research Companies (ABPM), told BNamericas.

“It is also important to mention that, in addition to the potential, we are seeing signs from the government of strengthened regulation in the sector to attract more investment.”

As part of these efforts, government officials and business leaders presented the country’s potential at the world’s largest exploration and mining convention, the Prospectors & Developers Association of Canada (PDAC 2023), held this week in Toronto.

“Brazil has immense potential and, if realized, it can make us global players in all of these commodities,” said Marcelo Esteves Almeida, head of the Mineral Resources Department of the Geological Survey of Brazil (SGB), in a statement.

The SGB prepared a guide containing maps showing the location of mineral deposits that are critical for the energy transition and for food security, linked to fertilizer production.

“This is the first time we have prepared material of this kind, on the potential of these minerals in Brazil, for PDAC. We show the location, geological context and types of deposits,” explained Guilherme Ferreira, head of economic geology at the SGB.

The guide can be accessed here.

Brazil is the world’s second-largest producer of iron ore, most of which is exported to China.

Now, the country is seeking to diversify its mining industry and attract investment.

“The scale and composition of demand for minerals and metals are already changing as a result of this trend [the energy transition]. For Brazil to live up to its potential, it is fundamentally necessary to establish public and private capital partnerships for mining investments, including involving the stock exchange,” said Raul Jungmann, president of the Brazilian Mining Institute (Ibram), in a statement during his participation in PDAC.

According to the Ministry of Mines and Energy, Brazil currently has the world’s seventh-largest uranium reserves and is among the top six countries in global lithium extraction, in addition to holding 22% of the world’s graphite reserves. The country is also the third-largest in terms of nickel reserves.

Source: BN Americas

Invest in the future with Tessa! Talk to one of our consultants and turn your project into an example of sustainability and efficiency.

Follow the Tessa Blog and stay up to date on all the news, trends, tips and market developments.