Toronto (March 1st, 2020) – Some of the key challenges for developing the mining sector in Brazil were debated yesterday at the Brazil-Canada Mining Brunch hosted by the Brazil-Canada Chamber of Commerce. Representatives from some of the largest multinational corporations with operations in the country expressed their optimism about the industry’s future under the current reforms promoted by the government. All agreed that Brazil offers growing opportunities for investment in exploration and mining, although some pointed out technology and ESG (environmental, social and governance) as challenges still to be addressed along the way.
While Brazilian Mining Secretary Alexandre Vidigal took the stage once again to reinforce Brazil’s commitment to continuing structural reforms aimed at taking the industry to the next level, including regulatory advances, technological development, and sustainable practices, executives from Nexa Resources, Sigma Lithium Resources, Appian Capital Brazil, and Ero Copper gathered in a panel to share their views and expectations in reaction to these changes.
Nexa Resources CEO, Tito Martins, sees the government moving to the right direction as it increases efforts to attract investments to the mining industry. Martins believes that beneficial effects will be more visible for foreign investors in two years. “Investors are looking at Brazilian mining positively and are showing signs of support,” he observed, mentioning that more resources are needed to implement the changes, particularly in the regulatory field.
For Appian Capital Brazil CEO, Paulo Castellari, the environment for investment in the Brazilian mining sector is relatively superior to those in other developing regions in the world, such as in Africa and Asia. He highlighted the quality of the local labor as a point of attractiveness for foreign investments. “We have a structured systematic approach much like the global investment community,” he said.
Noel Dunn, Executive Chairman at Ero Copper, also mentioned the skilled workforce in the Brazilian mining industry as a differential for attracting foreign investments, as well as the stability of economic indicators, such as the inflation rate. Dunn sees the regulatory framework in Brazil comparable to Canada, even prior to the new regulations.
Sigma Lithium Resources CEO, Calvyn Gardner, pointed out the substantial investment of Brazilian capital in the sector as a good sign for the measures being taken by the government.
Speaking on behalf of the Canadian government, Cheryl Urban, the Director General for South America and Inter-American Relations at Global Affairs Canada, referred to Brazil and Canada as “two giants in the mining sector”. Urban also commented that “Brazil and Canada both offer huge potential for mining exploration given their geological riches and sheer size.”
Later in the day, Brazilian Mining Secretary Alexandre Vidigal and other members of the Brazilian delegation inaugurated the Brazil Pavilion at the PDAC 2020 Exhibition. Secretary Vidigal was joined by Parliamentary Secretary to the Minister of Natural Resources of Canada Paul Lefebvre, Consul General of Canada in Rio de Janeiro Evelyne Coulombe; Cheryl Urban; president of Agency for Technological Development of the Brazilian Mining Industry (ADIMB) Edson Ribeiro; and the directors of National Mining Agency (ANM), Tasso Mendonça and Tomas Pessoa Filho.
About PDAC 2020 – The Prospectors & Developers Association of Canada’s (PDAC) 2020 Convention is the world’s premier mineral exploration and mining event. PDAC is the leading voice of the mineral exploration with over 7,500 members around the world. PDAC 2020 will take place March 1-4 at the Metro Toronto Convention Centre in Toronto, Canada marking its 88th year.
For more information on Brazil PDAC 2020, visit: www.adimb.org.br.