By Giancarlo Silva
The recent statement by President Luiz Inácio Lula da Silva about the mining policy, though filled with enthusiasm and promises of a green future, seems to echo a past of poorly formulated policies and missed opportunities.
Brazil is currently experiencing a favourable period for attracting mining investments, driven by global demand for strategic minerals essential to the energy transition. Geological exploration is booming, and both foreign and domestic companies see Brazil as fertile ground for developing their projects.
The recent partnership between INB (Indústrias Nucleares do Brasil) and the Australian company OAR Resources for the exploration of rare earths and uranium in Brazil, despite the fragile legislation governing private participation in research, highlights the favourable moment of Brazilian mining.
Any change to this legal framework must be carefully considered, drawing on the best international practices, with a focus on environmental safety and the protection of national interests.
But haven’t we learned from 2015?
The attempt to implement the “New Mining Regulatory Framework” in 2015, marked by heated debates and disastrous results, serves as a warning. The still fresh memory of a past filled with uncertainty and instability in the sector should prompt us to question the solidity of the new policy.
The President’s enthusiasm for renewable energy production, promises of billion-dollar investments in the green economy, and the celebration of Brazil’s prominent position on the global stage are undoubtedly significant. However, for these promises to materialise, the new policy must be built on a thorough analysis of the mining sector’s needs and with due respect for industry demands.
The Brazilian Association of Mineral Exploration and Mining Companies (ABPM), in a recent statement, highlighted:
If the new policy includes incentives for mineral diversification; investments in ANM, SGB, and Technology Centres; support and encouragement for mineral exploration; reduction of fiscal disparities between domestic production and imports; investments in local workforce training; maintenance of the global principles of the current Mining Code; and incentives for mineral processing, the government’s proposal will have our strong support.”
It’s not simple, but it’s really new…
___
Source: Minera Brasil – Portal de Notícias Gov.br – ABPM
Image: Marcelo Camargo/Agência Brasil
Text: Giancarlo Silva
