Brazil’s lengthy seven-to-eight-year licensing process is hindering investment in its mining sector, despite its vast mineral resources. Former environmental chief Raul Jungmann, now CEO of Ibram, stated that anticipated investments could rise significantly if permitting were expedited. Brazil’s regulatory challenges are affecting other sectors as well, including oil production.
Brazil has the potential to benefit from the increasing global demand for critical minerals. However, the lengthy licensing process, lasting seven to eight years, is significantly hindering development efforts. Raul Jungmann, CEO of the Brazilian Mining Institute (Ibram), highlighted this issue during his address at the Brazilian Development Bank’s strategic minerals conference in Rio de Janeiro, expressing that these delays are ‘cooling’ investment interest.
Anticipated investments from major mining companies in Brazil could reach $68.4 billion between 2025 and 2029. This amount could be elevated if the regulatory process were expedited. Jungmann also noted that the duration for license approvals in Brazil is significantly longer compared to other nations, where the time frame is often reduced to half or one-third.
Moreover, Brazil is rich in mineral resources, possessing the world’s largest niobium reserves, the second-largest graphite reserves, and the third-largest reserves of rare earth elements and nickel. Additionally, Brazil is a leading producer of iron ore, with Vale SA being a notable player in the industry.
The challenges extend beyond mining, as Petrobras, Brazil’s state-controlled oil producer, is also encountering delays in approving new drilling projects. Magda Chambriard, CEO of Petrobras, remarked on the operational difficulties faced with Ibram and noted that the oil and gas regulator is not the primary source of these challenges.
The issues surrounding Brazil’s regulatory framework highlight the need for improvement in the licensing process to capitalize on its significant natural resource potential and competitive position in the global market.
In summary, Brazil’s extensive mineral reserves and the growing global demand for critical minerals present significant economic opportunities. However, the protracted licensing process is a critical impediment to attracting investments, as expressed by mining industry leaders. Streamlining this process could enhance Brazil’s competitiveness on the global stage, enable increased investment, and facilitate the country’s economic growth within the resource sector.
Original Source: www.mining.com
