Energy transition: Ibram wants BNDES funding for critical minerals

The CEO of the Brazilian Mining Institute (Ibram), Raúl Jungmann, informed that the entity collaborated with the National Bank for Economic and Social Development (BNDES) in creating funds with the aim of exploiting specific resources for critical minerals. He said he believes that, by the end of the year, the BNDES will present a proposal.

For Jungmann, Brazil needs a national policy on critical minerals, as it is a rapidly expanding market, as it is associated with the needs of the energy transition.

“They are fundamental minerals for a low-carbon economy. Without them there is no electrification, there are no electric cars, there are no wind turbines for the production of wind energy. Brazil has immense possibilities, with lithium , with niobium, with tantalum We need to expand our market and for this we need financial support”Jungmann said.

Ibram represents the largest mining companies operating in the country. The entity released numbers relating to the sector’s performance in the third quarter of 2023. Between July and September of that year, revenues of mining companies amounted to R$53 billion.

The amount represents a decrease of 28.9% compared to the same period in 2022 and 17.5% compared to the previous quarter. According to Ibram, the trend was influenced above all by the reduction in production, but also by price fluctuations raw material in the international market.

Jungmann assessed that the escalation of the conflict between Ukraine and Russia and between Israel and Hamas could generate new variations. “It’s a scenario that creates difficulties”He said.

The drop in revenues had repercussions on other sector indicators. The collection of financial compensation for the exploration of mineral resources (CFEM), considered the royalty mining, totaled R$1.51 billion in the third quarter of 2023. The value is 23% lower than in the same period of 2022.

There was also a reduction in the amount of exports, calculated in dollar terms. Movement in the third quarter of 2023 was 4.5% lower than that of the same period last year and 3.5% lower than the previous quarter.

Between July and September this year, iron ore accounted for 71.7% of exports. Other products with high turnover were copper (7.8%), gold (7.8%) and niobium (4.7%). China has been the main buyer of Brazilian minerals.

Ibram also presented investment data. It is estimated that, by 2027, the mining sector will invest $50 billion in Brazil, of which $6.5 billion in socio-environmental projects.

Strike

According to Ibram, the sectoral investigation was hindered by the strike called by employees of the National Mining Agency (Anm). Some data, including details on states’ performance, would depend on the availability of information from the federal authority responsible for overseeing the sector.

“The ANM strike means a huge loss. There are data, there are documents, there are authorizations, there is monitoring of the entire process relating to the sector. The strike has been suspended, but the ANM is still, therefore speaking, in its state of deficiency and precariousness which we hope will be overcome”Jungmann said.

The ANM workers’ strike began in August and ended at the beginning of this month. In total the strike lasted 51 days. In addition to demanding wage improvements, the strikers criticized the demolition of the ANM in recent years and the low number of employees needed to supervise the sector, deemed insufficient to guarantee the safety of mining activities in Brazil.

According to union estimates, it would be necessary to more than double the number of workers. In September, the federal government announced the appointment of 27 civil servants approved in the latest competition, announced in 2021. The measure was considered insufficient by the strikers. However, negotiations with the federal government continued and an agreement was reached to suspend the strike, giving more time to find a solution.