Mining in Brazil Investment and VC Movements Analysis¶

Investment and VC Movements¶

Corporate Venture Capital (CVC) activity in the Brazilian mining sector in 2024 and 2025 is notably influenced by strategic initiatives from major players and targeted investments in critical minerals and sustainable technologies. While a comprehensive landscape of all CVC movements across the entire Brazilian mining value chain is not extensively detailed in the provided sources for this specific period, key investments by Vale Ventures and a development finance institution highlight significant trends and their potential impacts.

Vale S.A., a dominant force in the Brazilian mining industry, established Vale Ventures in June 2022 with an initial allocation of $100 million to invest in startups offering disruptive innovations in the metals and mining sectors. The focus areas of Vale Ventures are strategically aligned with major challenges and opportunities in the mining value chain: decarbonization, zero-waste mining, energy transition metals, and the future of mining through disruptive technologies. In 2023, Vale Ventures invested R$ 95 million (approximately US$ 19 million) directly in acquiring minority stakes in startups, and an additional R$ 13 million in venture capital funds. Specific investments highlighted in 2024 include an investment in Mantel, a startup developing carbon capture technology with potential applications in mining and steelmaking, as part of a Series A funding round totaling $30 million. Another investment in 2024 was in Electrified Thermal Solutions (ETS), a US-based startup focused on developing technology for heating industrial furnaces without fossil fuels, aiming to reduce greenhouse gas emissions in hard-to-abate sectors like mining and steel.

Beyond Vale's direct CVC arm, the U.S. International Development Finance Corporation (DFC) has made a $30 million equity investment in a project in Brazil through TechMet Limited to support the development of a critical mineral mining facility. This facility is aimed at producing nickel and cobalt, minerals essential for the energy transition, with the objective of bolstering U.S. supply chains and strengthening U.S. relations with Brazil. This investment, profiled in 2024, underscores the growing international interest and strategic investment in Brazil's critical minerals sector.

Discussions around establishing a Venture Capital stock exchange in Brazil specifically for mining, particularly for financing mineral research projects, have also taken place, involving key industry associations, government institutions like BNDES and ANM, and B3 (Brazilian stock exchange). This initiative, debated in late 2023 with strategy validation expected in early 2024, indicates a potential future avenue for increased venture capital flow into the Brazilian mining sector, especially for junior companies in the exploration phase.

While overall private equity and venture capital deal volume in Brazil saw a decline in 2024 compared to previous years, partly due to global factors and a shift towards special situations investing, the mining sector, particularly in critical minerals, is identified as an area with potential for increased private equity interest driven by energy transition needs. However, the sheer scale and capital requirements of mining projects, along with scrutiny on environmental impact and operational costs, can pose challenges for traditional venture capital models focused on rapid scale-up.

Impact of Investment and VC Movements¶

The identified corporate venture capital and development finance institution investments, while limited in number in the provided data for 2024-2025, demonstrate a clear impact on specific stages and aspects of the Brazilian mining value chain.

Vale Ventures' investments are primarily focused on bringing disruptive technologies and innovative business models into Vale's operations and the broader mining value chain, with a strong emphasis on sustainability and energy transition minerals. The investment themes of decarbonization and zero-waste mining directly target improvements in the environmental footprint of mining operations across various stages. Investments in startups focused on energy transition metals aim to accelerate the supply of these crucial resources, impacting the exploration, extraction, and processing stages. The "future of mining" theme encompasses technologies that can change how miners operate, potentially impacting efficiency and safety across extraction, processing, and logistics.

The DFC's investment in a nickel and cobalt project in Brazil specifically targets the Lavra (Extraction) and Beneficiamento e Transformação Mineral stages of the value chain for these critical minerals. This investment aims to increase the production capacity of nickel and cobalt, directly impacting the volume and availability of these materials. Furthermore, it contributes to strengthening the supply chain for these minerals.

The discussions around a dedicated Venture Capital stock exchange for mining in Brazil, if realized, could significantly impact the Prospecção e Pesquisa Mineral stage by providing junior exploration companies with better access to capital for financing high-risk, early-stage projects. This could lead to increased exploration activity and potentially the discovery of new deposits.

The impact of these investments on the value chain can be summarized as follows:

Value Chain Step	Impact of Major Corporate Venture Capital and Development Finance Institution Investments (2024-2025)
Prospecção e Pesquisa Mineral	Potential for increased activity, particularly for junior companies, if a dedicated VC exchange is established, providing better access to exploration funding. Vale Ventures' focus on energy transition metals may indirectly stimulate exploration for these commodities.
Lavra (Extraction)	Direct impact from the DFC's investment in a nickel and cobalt project, leading to increased extraction capacity for these critical minerals. Vale Ventures' investments in disruptive technologies could lead to more efficient and potentially safer extraction methods in the future.
Beneficiamento e Transformação	Direct impact from the DFC's investment in a nickel and cobalt project, increasing processing capacity for these minerals. Vale Ventures' investments in decarbonization and zero-waste technologies are aimed at improving the environmental performance and efficiency of processing plants.
Logística e Transporte	While not a direct focus of the identified CVC investments, increased production of critical minerals resulting from these investments could lead to increased demand for logistics services for these specific commodities. Vale Ventures' interest in the "future of mining" could encompass logistics optimization technologies.
Comercialização e Distribuição	Increased production of nickel and cobalt due to the DFC investment will impact the supply available for commercialization. Vale Ventures' focus on energy transition metals is driven by market demand and aims to secure future supply for these markets.
Descomissionamento e Fechamento	Vale Ventures' focus on zero-waste mining and sustainable initiatives could lead to the development and adoption of technologies that reduce the environmental impact throughout the mine life cycle, potentially influencing decommissioning and closure processes and costs in the long term.

Overall, corporate venture capital and targeted investments are playing a role in driving innovation and supporting the development of strategic segments within the Brazilian mining value chain, with a clear focus on sustainability and critical minerals for the energy transition. While the volume of reported CVC deals within the specified timeframe appears concentrated, the strategic intent behind these investments is to foster disruptive change and enhance the long-term viability and competitiveness of the sector.

References¶

Agência BNDES de Notícias: https://agenciadenoticias.bndes.gov.br/detalhe/noticia/BNDES-recebe-governo-e-setor-privado-para-debater-cadeia-de-valor-de-minerais-estrategicos/
Affinity: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXFf89ez2lFjPA9Rbd5X0godOK05eRxRYjMrHyoWey7xWWdM59oUUTye13vkqFg6e99oO14rGUIo7sdI7rJfKaWx71hBlPwRM6lciwz0rSu8l_2TzCSkUUcipHSruuRn17UhxvmKwbhgVVZfFiU9661hIvX5
Brasil Mineral: https://www.brasilmineral.com.br/noticias/Anglo-American/minas-rio-bate-recorde-de-producao-em-2024
Brasil Mineral: https://www.brasilmineral.com.br/noticias/desempenho/mineracao-responde-por-47-do-saldo-da-balanca-comercial-investimentos-sobem-para-us-684-bilhoes
Brasil Mineral: https://www.brasilmineral.com.br/noticias/perspectivas/producao-mineral-brasileira-volta-a-crescer-mas-ainda-depende-do-minerio-de-ferro
CSIS: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AbF9wXEkm2HMJ-TRmBZqUlQ_rK72Yf6_ca0hODI6BIFSsVtkGf0qtrlv7buRd_0djn1tJRYzTfzeDTTUNOjoY-2uvSBrhSbI1aLeAHKy2U1X8mFHBG3xckTD3Y7naOcgpvNp5PNpNaHPJpzmuv11myG32eFLBWfA2PtrkZxmfwxXD3a_MWuHYo2TZ4BgnLC-
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Invest Mining debate bolsa de Venture Capital para a mineração - Brasil Mineral: https://www.brasilmineral.com.br/noticias/invest-mining-debate-bolsa-de-venture-capital-para-a-mineracao
Invest Mining Summit apresenta oportunidades de investimentos da mineração ao mercado financeiro - IBRAM: https://ibram.org.br/noticias/invest-mining-summit-apresenta-oportunidades-de-investimentos-da-mineracao-ao-mercado-financeiro/
Invest in Brazil: https://api.trade.gov/static/investment-guide-brazil.pdf
Investment & innovation: mining's perfect storm - The Intelligent Miner: https://www.theintelligentminer.com/innovation/investment-innovation-mining-s-perfect-storm/
KPMG Brasil: https://kpmg.com/br/pt/home/insights/2025/02/venture-pulse-q4-2024.html
Mining tech investment outlook 2023 - InvestMETS: https://www.investmets.com/mining-tech-investment-outlook-2023
Number Crunch: PE interest in the mining sector is sliding | Private Equity International: https://www.privateequityinternational.com/number-crunch-pe-interest-in-the-mining-sector-is-sliding/
Private equity deals in mining set to rise on energy transition needs, says S&P Global: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/private-equity-deals-in-mining-set-to-rise-on-energy-transition-needs-says-s-p-global-85433698
Private equity deal volume in Brazil seen to decline further in 2024 - S&P Global: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/private-equity-deal-volume-in-brazil-seen-to-decline-further-in-2024-85434579
Sourcing cobalt and other critical minerals by countering China's rare earth dominance: https://dfc.gov/enhanced-development-outcomes-sourcing-cobalt-and-other-critical-minerals-countering-chinas-rare
Sustainability that pays: Defining a credible business case for investing in sustainability in mining and metals: https://www.erm.com/insights/sustainability-that-pays-defining-a-credible-business-case-for-investing-in-sustainability-in-mining-and-metals/
TechMet Funding - Delphos: https://www.delphos.com/techmet-funding
Vale Launches $100M Fund to Invest in the Sustainable Startup Ecosystem: https://www.valeventures.com/news/vale-launches-100m-fund-to-invest-in-the-sustainable-startup-ecosystem
Vale launches innovation-focused venture capital arm - Mining Magazine: https://www.miningmagazine.com/finance/news/1436325/vale-launches-innovation-focused-venture-capital-arm
Vale Ventures: https://www.valeventures.com/home

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