The Brazilian Ministry of Mines and Energy (“MME”) launched during the Prospector and Developers Association of Canada annual convention (“PDAC”), on 03.03.2024, a Guide For Foreign Investors In Critical Minerals For The Energy Transition In Brazil.
According to the Guide, at the initiative of the MME, Brazil will establish a mining development program focused on the energy transition. The objectives of this program include expanding the country’s geological knowledge, mineral exploration, and Brazilian production of critical minerals for the energy transition, as well as fostering the mineral transformation of these minerals in the country.
Alongside presenting the Guide, MME Director Rodrigo Cota emphasized Brazil’s investment opportunities in both exploration and exploitation of critical minerals crucial for the energy transition. Also, according to the director, if other countries are really committed to the energy transition, they should turn their attention to Brazil and invest in the transformation chain of critical minerals for the energy transition, focusing, among other objectives, on the manufacturing of the batteries for electric cars.
Governmental action guidelines within the program will::
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Prioritize the analysis and approval of exploration permits and mining concessions of strategic minerals. These minerals will also take priority in aerogeophysical surveys, geological mapping, and mineral resource assessments.
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Offer of financial support by official banks and development agencies for investments in mineral exploration, mining, and mineral transformation of critical minerals for the energy transition in Brazil.
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Developing the necessary infrastructure for the economic utilization of critical minerals for the energy transition.
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Promoting research, development, and innovation focused on mining and mineral transformation of critical minerals for the energy transition.
Additionally, the guideline emphasizes seeking international partnerships to access new markets. Thus, the Brazilian government aims to explore its tremendous mineral potential and a powerful tendency for mining activities.
At the event, the MME, together with the National Bank for Economic and Social Development (BNDES), revealed an activity calendar for the Critical Minerals Investment Fund (FIP) in Brazil. In addition to attracting investments and strategic partners, the FIP aims to promote sustainable mining.
Under the plan, the FIP aims to mobilize over R$ 1 billion, facilitating new projects in minerals deemed essential for energy transition, decarbonization, and sustainable food production. The FIP will prioritize minerals essential for the energy transition and decarbonization, including cobalt, copper, tin, graphite, lithium, manganese, rare earth minerals, among others.
It is important to note that minerals essential for soil fertility are also covered by the fund.
The opening of the public selection for projects eligible for funding is assigned for May 2024, and the announcement of the results of the funding requests is designated for October 2024.
In conclusion, Brazil is set to forge strong partnerships and international collaborations to propel the exploration and exploitation of critical minerals forward. With a firm commitment to nurturing a skilled workforce through comprehensive education and training, Brazil aims to set new benchmarks for innovation in the mineral industry. This strategic vision highlights Brazil’s resolve to be a key player in the international mineral sector, showcasing its readiness to lead in the sustainable development and utilization of critical resources.
For more information, access here the full Guide for Foreign Investors in Critical Minerals for the Energy Transition in Brazil.
Feel free to reach out to Cescon Barrieu’s Mining Law team for additional details and clarification on the matter.
