Brazilian Official: Mining Projects Are 'National Priorities'
(Kitco News)- While the world continues toreact to the election of Brazilian populist president Jair Bolsonaro, somegovernment officials don’t expect this to have much impact on the nation’s planto develop its national resource.
In an exclusive interview withKitco News ahead of the October runoff election, Pedro Bruno Barros De Souza,secretary of public policy coordination, said that the government’s InvestmentPartnership Program (IPP) is bigger than any one political leader. He addedthat the government, no matter who is in charge, is committed to developing thenation’s natural resources responsibly.
“Brazil has a lot of mineralpotential and there are many opportunities for investors and companies who wantto work with the government to develop those resources,” he said. “TheBrazilian government has been working diligently on its governance to create astable legal, regulatory framework, so investors will find a positive businessenvironment.”
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| Image courtsey of T photography / Shutterstock.com: Carajas Mine, the largest iron ore mine in the world, located in Para, Brazil |
Although Brazil is home to theworld’s largest iron and nickel producer, Vale, and is the world’sthird-largest iron ore producer, Barros De Souza said that more work needs tobe done to make sure the sector continues to grow and mature.
Brazil’s IPP was first launchedin 2016 to help the nation out of its most prolonged recession in the country’shistory. Barros De Souza said that the program is expected to bring $90 billionin infrastructure investment into the country within 25 years. Currently, thegovernment has 191 projects in the IPP portfolio.
As part of the IPP portfolio, thegovernment, in collaboration with the Geological Survey of Brazil, hasidentified several regions for mining development.
“By law, the projects that belongin the portfolio are national priorities. Working with mining companies todevelop these regions is a national priority for the government,” he said. “Thegeological survey has collected a lot of information on these regions and nowit is time to move to the next step and find companies who want to explore theregion further.”
Bruno Eustaquio Ferreira CastroDe Carvalho, a program director within the IPP, said that the goal of theprogram is to identify new regions every year and then auction the explorationrights to companies. He added that so far, the government is pleased with thecompanies that have expressed an interest in developing the regions identified.
“We know the potential within ourcountries and we know we can attract the best companies to work with us,” hesaid.
Castro De Carvalho added thatwith this program, mining companies will benefit from having allies within theBrazilian government who will be able to help them navigate the country’srelatively new regulatory framework.
While some foreign investorsmight be reluctant to put their money in Brazil, Barros De Souza said that officialsare hoping the government’s commitment to transparency and the rule of law willassuage some of those concerns.
“We have learned a lot from ourhistory and we believe we have created a strong regulatory framework thatinvestors can trust,” he said.
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |