Posted on 24 Jan 2024
Brazil’s mining and energy minister (MME) Alexandre Silveira championed the country’s mining potential during the World Economic Forum last week, eyeing Saudi investment, Kallanish reports.
The official met Saudi Arabia’s industry and mining minister Bandar Alkhorayef and pitched investment opportunities in sustainable mining in Brazil, particularly of critical minerals. He also discussed the Saudi interest with investment minister Khalid Al-Falih.
The MME says in a statement the officials discussed the creation of an investment fund focused on Brazil, as the Saudi government showed interest in developing the Brazilian mining industry. The Middle Eastern nation is said to recognise Brazil’s “leading role” in the global energy transition, MME adds.
It’s unclear, however, whether the giant Saudi fund PIF is considering investing in the South American country. The kingdom announced that state mining company Ma’aden and PIF would form a 51%-49% joint venture, respectively, to initially invest in nickel, lithium, copper and iron ore. Its goal was to support the development of a downstream supply chain with physical offtake of critical minerals.
“In addition to Brazil’s leadership in the production of clean and renewable energy, everyone recognises our country’s mineral potential. We are advancing regulations to guarantee the activity can be done sustainably and safely,” Silveira added.
“Our objective is to develop a robust mineral transformation industry. With global partnerships, cooperation between public and private entities, research, development and innovation projects, in collaboration with educational entities, we will be able to have an integrated approach to strengthen the country [Brazil] as one of the world leaders in the mineral industry.”
According to MME, around 88% of Brazil’s energy mix is clean thanks to wind, solar and hydropower capacity. Biomass is starting to gain traction in the country, as well as its ambitions for hydrogen development. Yet, the country also has huge deposits of rare earths and other critical minerals such as lithium and niobium.
The government estimates Brazil to hold 1.2 million tonnes of lithium, alongside significant reserves of nickel, copper, cobalt and graphite. It is already one of the largest iron ore miners in the world.
Saudi Arabia, meanwhile, has also been boosting its domestic mining industry and welcoming foreign investment. It recently announced a $182 million mineral exploration incentive programme to develop its vast reserves of phosphate, copper and other minerals.
Source:Kallanish
