The president of the Brazilian Mining Institute (Ibram) made some statements during this last Tuesday, (26/04), about the future of production and expansion in the mining sector in Brazil and stated that the segment will receive an investment of R$ 200 billion over the next 5 years. In addition, the executive took the opportunity to criticize the lack of commitment to the National Mining Agency (ANM) in relation to financial transfers in the sector.
The mining sector in Brazil is one of the biggest movers of national capital, due to the high reserves that the country has in relation to lucrative ores. Thus, Ibram announced that an investment of R$ 200 billion will be invested in the segment over the next 5 years, to encourage the development of more and more projects and ventures in the sector and expand its production in the country.
Among the main minerals that will benefit from the investment project in the expansion of production, the highlight is the iron ore segment, which concentrates one third of the planned contributions. In addition, a good portion of the investments will be destined to the production of fertilizers and bauxite, since each one has investment forecast of US$ 5.7 billion (about R$ 28 billion) between the years 2022 and 2026.
The investment package will also be applied within the process of deactivating structures that pose risks to the population, to prevent new disasters from happening in mining production in Brazil. Thus, a total of US$ 900 million (R$ 4.5 billion) will be invested in decharacterization of dams similar to those that failed in Brumadinho (MG) and Mariana (MG) over the next 5 years. In this way, Ibram not only seeks to encourage an expansion of mineral production, but also to ensure greater safety and efficiency in the Brazilian sector.
Still in his interview about the future of the mining sector in Brazil, the president of Ibram took advantage of the moment and criticized the contingency of funds by the ANM, which is responsible for regulating the sector and collecting royalties charged on mineral production, but is not making a correct pass-through to the segment. Thus, the agency stated that she should be around 7% of royalty revenue, which amounted to R$ 1.5 billion in the first quarter, but has only received 1%.
Mineral production in Brazil fell sharply earlier this year as Chinese demand slowed as it tried to stave off a new wave of Covid-19 and cut its steel production during the Winter Olympics. Thus, Ibram stated that this was the main problem in relation to financial transfers to ANM,
Finally, Raul Jungmann, the president of Ibram, left the ANM aside and criticized the bill that approves mining in indigenous lands, stating that “It is necessary that in this project the issue of illegal mining, of garimpo, is absolutely clear” , since the proposal leaves open many questions of transparency regarding the legality of this production.