Mining in Brazil Follow the Money Report¶

Opportunities for Change¶

Investment in the Brazilian mining sector in 2024 and 2025 reveals a clear focus on specific opportunities for change within the value chain, driven by global demand for critical minerals, strategic realignments of major companies, and a push towards technological innovation and sustainability. These investments are manifesting through Mergers and Acquisitions (M&A), Corporate Venture Capital (CVC), and direct project financing.

The primary opportunities for change currently receiving investment are:

Development and Expansion of Critical Mineral Operations (Lithium, Nickel, Cobalt, Rare Earths):
- Investment Driver: The global energy transition is fueling immense demand for minerals essential for batteries, electric vehicles, and renewable energy technologies. Brazil's significant reserves of these minerals are attracting both domestic and international capital.
- Manifestations:
  - M&A: Anglo American's sale of its nickel operations to MMG Singapore Resources, and Pilbara Minerals' proposed acquisition of Latin Resources (Salinas lithium project) highlight direct investment into acquiring and developing critical mineral assets. These transactions bring new capital and potentially accelerated development timelines to these projects.
  - Direct Investment: The U.S. International Development Finance Corporation (DFC) has made a $30 million equity investment in a Brazilian project through TechMet Limited to develop a nickel and cobalt mining facility. This aims to bolster supply chains for these strategic minerals.
- Value Chain Impact: This investment directly impacts Prospecção e Pesquisa Mineral (as new owners invest in resource definition and expansion), Lavra (Extraction) (through development of new mines or expansion of existing ones like the DFC-backed project), and Beneficiamento e Transformação (as processing facilities for these specific minerals are established or upgraded). It also influences Comercialização e Distribuição by bringing new supplies of these high-demand minerals to market.
Technological Innovation for Efficiency, Sustainability, and Decarbonization:
- Investment Driver: Growing pressure to reduce the environmental footprint of mining, improve operational efficiency, and address climate change is driving investment in innovative technologies.
- Manifestations:
  - Corporate Venture Capital (CVC): Vale Ventures, with an initial $100 million fund, is actively investing in startups. Key areas include decarbonization (e.g., investment in Mantel for carbon capture, Electrified Thermal Solutions for fossil-fuel-free industrial heating), zero-waste mining, and the "future of mining" through disruptive technologies. These investments aim to introduce new processes and solutions across the value chain.
- Value Chain Impact: These investments target improvements across multiple stages. Decarbonization and zero-waste technologies directly impact Lavra (Extraction) and Beneficiamento e Transformação by aiming to reduce emissions and waste. "Future of mining" technologies can enhance efficiency and safety in extraction, processing, and potentially Logística e Transporte. Sustainable initiatives also positively influence Descomissionamento e Fechamento by reducing long-term environmental liabilities.
Portfolio Optimization and Strategic Realignment by Major Players:
- Investment Driver: Large mining companies are divesting non-core assets to focus on commodities central to their long-term strategy, particularly those linked to the energy transition (e.g., copper, premium iron ore), or to streamline operations and redeploy capital to higher-return opportunities.
- Manifestations:
  - M&A: Anglo American's divestment of nickel assets to focus on copper and iron ore is a prime example. Mosaic Fertilizantes' sale of its idled Patos de Minas phosphate mine to optimize its asset portfolio also fits this trend. These sales free up capital for the sellers to reinvest elsewhere and bring in new owners (often with different strategic priorities) for the divested assets.
- Value Chain Impact: This trend primarily reallocates capital and operational control. While the divesting company might shift its investment focus to other parts of its value chain (e.g., investing more in copper exploration or processing), the acquiring companies invest in taking over and potentially revitalizing the acquired assets across their respective value chain steps (Lavra, Beneficiamento, Comercialização).
Facilitating Access to Capital for Early-Stage Exploration:
- Investment Driver: Junior exploration companies often struggle to raise capital for high-risk, early-stage mineral prospecting and research.
- Manifestations:
  - Potential New Financing Mechanisms: Discussions involving BNDES, ANM, B3, and industry associations about establishing a Venture Capital stock exchange in Brazil specifically for mining indicate an effort to create new avenues for funding.
- Value Chain Impact: If realized, such an exchange would primarily benefit the Prospecção e Pesquisa Mineral stage. Increased funding for junior companies could lead to more exploration projects, potentially uncovering new mineral deposits and diversifying Brazil's mineral production base. M&A is also serving as a financing option for some junior companies.

In summary, investments are flowing towards opportunities that promise to (a) supply the minerals critical for a changing global economy, (b) make mining operations more sustainable and efficient through technology, and (c) reconfigure asset ownership to better align with strategic corporate goals. These opportunities are creating dynamic shifts across multiple stages of the Brazilian mining value chain.

Key Findings¶

Opportunity for Change	Investment Manifestation(s)	Key Actors/Examples	Primary Value Chain Steps Impacted
Development of Critical Mineral Operations	M&A, Direct Project Investment	MMG (Nickel), Pilbara Minerals (Lithium), DFC/TechMet (Nickel, Cobalt)	Prospecção e Pesquisa Mineral, Lavra (Extraction), Beneficiamento e Transformação, Comercialização
Technological Innovation for Sustainability & Efficiency	Corporate Venture Capital (CVC)	Vale Ventures (Mantel, Electrified Thermal Solutions)	Lavra (Extraction), Beneficiamento e Transformação, Logística e Transporte, Descomissionamento
Portfolio Optimization by Major Players	M&A (Divestments and Acquisitions)	Anglo American (divestment), MMG (acquisition), Mosaic (divestment), Pan American Silver (acquisition)	Lavra (Extraction), Beneficiamento e Transformação, Comercialização
Facilitating Early-Stage Exploration Funding	Discussions for new VC exchange, M&A for junior companies	BNDES, ANM, B3, Junior Mining Companies	Prospecção e Pesquisa Mineral

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/
Anglo American to sell nickel business to MMG for $500m - Mining Technology: https://www.mining-technology.com/news/anglo-american-sell-nickel/
BRAZIL MINING 2024 - Global Business Reports: https://www.globalbusinessreports.com/article/1352/brazil-mining-2024
Critical minerals potential boosts Brazilian mining M&As - BNamericas: https://www.bnamericas.com/pt/analise/potencial-de-minerais-criticos-impulsiona-fusões-e-aquisicoes-na-mineracao-brasileira
DFC - U.S. International Development Finance Corporation: https://dfc.gov/enhanced-development-outcomes-sourcing-cobalt-and-other-critical-minerals-countering-chinas-rare
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
KPMG Brasil: https://kpmg.com/br/pt/home/insights/2025/02/venture-pulse-q4-2024.html
Pan American Silver Completes Acquisition of Yamana Gold: https://www.panamericansilver.com/investors/news/pan-american-silver-completes-acquisition-of-yamana-gold/
Pan American Silver achieves 2024 production guidance and enters 2025 with a record cash balance - Investing News Network: https://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/pan-american-silver-achieves-2024-production-guidance-and-enters-2025-with-a-record-cash-balance/
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 Ventures: https://www.valeventures.com/home
TechMet Funding - Delphos: https://www.delphos.com/techmet-funding
Merger control in Brazil: a 2024 retrospective and the outlook for 2025 - Mattos Filho: https://www.mattosfilho.com.br/unico/merger-control-in-brazil-a-2024-retrospective-and-the-outlook-for-2025/ (Note: This URL appears in M&A, inferred relevance for M&A as financing for juniors)