Brazilian Mineral Exploration Challenges in the Context of Ecological Transition

In the global context where ecological transition is a priority, Brazil finds itself in a paradoxical position. The country holds mineral reserves considered among the best globally for the ecological transition – lithium, copper, rare earths, potash, and green iron. However, these riches are not being fully exploited due to a critical funding obstacle. According to BNDES representatives, each project takes six to ten years from conception to implementation, deterring investors and allowing international competitors to advance. A recent roundtable discussion hosted by Valor Econômico with support from the Brazilian Institute of Mining (Ibram) highlighted this issue further. Participants included executives from companies such as Ero, Potash Brazil, and CBL. This delay is not due to geological issues in Brazil but rather the challenge of finding sufficient collateral for projects still in the installation phase. BNDES has been seeking alternatives to create a more favorable ecosystem by promoting discussions on a new regulatory framework that would bring greater predictability and credit instruments for new projects. The lack of funding not only delays the development of these industries but also reduces Brazil's global competitiveness, impacting its exports and international trade position. Macro-economically, this delay could result in significant losses for the country, considering the essential resources required for the ecological transition at both local and global levels.