The mining industry now finds itself in one of the most challenging and, at the same time, most promising periods in its history. The global scenario marked by the energy transition, sustainability requirements and technological advances has placed Brazilian mining companies in a strategic position in the supply of critical minerals and in the development of high value-added production chains.
The current moment of visibility of critical minerals in the energy transition should be seen as an opportunity and converted into policies and financial instruments capable of sustaining the development of projects in Brazil. The global search for production of mineral goods outside China, due to its export controls, has raised prices and encouraged a significant flow of investments into other countries, stimulating financing at all stages of the chains.
With billions in new investments expected in Brazil, investors have aligned their strategies to long-term projects. Mining companies and junior companies have attracted and made large investments in mineral exploration, mine opening, and innovation, highlighting opportunities in sustainable projects, new financing models, digital transformation, and socio-environmental governance. It is in this context that the Invest Mining network works to make the business environment in the country increasingly promising.
The occurrence in Brazil of so many critical minerals, some of them in large quantities, clearly gives it the status of a key player in global markets as a supplier of minerals needed for the energy transition, particularly for the production of components and parts for electric vehicles, high-performance wind turbines, batteries, and clean technology. Brazil holds significant reserves of strategic minerals, notably a 94 per cent share of the world's niobium and including significant shares of lithium, graphite, vanadium, and rare earth reserves — all of them essential elements for the energy transition.
In 2024 mining output in Brazil rose to US$ 48.8 billion, a 9.1 percent increase from the previous year. Iron ore, Brazil's main mineral commodity, accounted for 59.3 percent of the total. Mineral exports in 2024 totaled about 400 million tons, for an income of US$ 43.4 billion, of which iron ore provided 68.7 percent.
The mineral trade balance yielded a US$ 39.4 billion surplus, corresponding to 47 percent of the overall surplus. Statistics from the National Mining Agency (ANM) show that, in the first half of 2024, the trade surplus in minerals was US$ 7.01 billion, representing 37.6 percent of the country's overall trade surplus. In addition, according to industry estimates, investments of around US$ 68.4 billion are expected in the 2025–2029 period. These data show that Brazilian mining has the potential to become a world landmark, including in the developing of disruptive technologies, with socio-environmental responsibility and value generation for society.
These results enabled Brazil to rise to fourth place in 2025 among the most attractive emerging markets for foreign investment, behind China, the United Arab Emirates, and Saudi Arabia. Brazil's main attractions are stated as natural resources (35 percent), economic performance (30 percent), and a skilled workforce (28 percent).
A window of opportunity has opened. Targeted and strategic actions are now needed as a further stimulus to attract investments and to position the country as a major global competitor. The country needs to develop integrated mineral-based production chains, to position itself as an exporter of raw materials and intermediate products and also of mining technology.
Closer cooperation between the financial sector and the mining industry is an essential factor, developing capillary networks while improving the financial markets' awareness of the challenges faced by small and medium-sized mining companies, as it becomes necessary, in view of Brazil's mining potential, to provide financing, via equity, debt, off-take, royalties, and streaming, among other mechanisms, to meet the needs of smaller companies that do not enjoy the same ease of market access as larger and long-established companies.
The National Bank for Economic and Social Development (BNDES) is a public-sector financial institution whose performance as a bank extends well beyond financing. It articulates cooperation between market players to take advantage of windows of opportunity for the country. One of the actions currently undertaken by BNDES is the Minerals Investment Fund, which provides support for projects in the field of essential minerals for the energy transition, decarbonization, and soil fertilization, oriented toward investment in mineral research projects, mine development, and the implementation of strategic mineral production projects in Brazil. BNDES is confident that Brazil has the potential to take a leadership role in the supply of critical and strategic sustainable materials and in technological development.
Mineral projects, especially those that have not yet come into production, require new financing structures, which will be a big step forward and have the potential to make a difference. Large mining companies, with an international presence, already have access to the full range of project financing, capex and opex options, unlike companies still in the pre-operational phase.
Brazil's mining industry has in fact entered a new phase, marked by more sophisticated financing and greater attention to the capital market and value chains. For projects that are in the exploratory stage or in pre-development, this change brings clear opportunities (capital, visibility, access to a global market) that present concrete challenges in the areas of regulation, governance, international competitiveness, and the need to add value.
A bill now on its way through Congress proposes a legal framework for incentives to the production and traceability of critical and strategic minerals. Projects of this kind would be given priority in the processing of applications at the ANM. The bill would also introduce a Mineral Production Guarantee Fund and authorize the issue of incentivized debentures to finance the production of critical minerals. If the new law is enacted in the present form of the bill, it will make a major improvement to the business environment in which the mining industry operates.
Infrastructure debentures have the potential to provide leverage for the mining industry and might even become one of the main drivers of financing. If these debentures, along with other mechanisms, should carry contractual clauses allowing for the release of guarantees in accordance with the company's subsequent performance, that could attract bank funding, suitably structured for higher-risk projects. This type of contractual flexibility would contribute to overcoming the challenges that arise in projects under development.
Financial market operators provide complementary support. They make financing operations viable by bringing buyers together and keeping a full record of all transactions, enabling the risk to be diluted, which, in turn, lowers the cost of capital. Coordination between the different types of creditors facing the risks of volatility, execution, and socio-environmental requirements helps to bring harmony between the various players taking part in each operation.
In addition to the aspects relating to financing mechanisms, full compliance with international standards of transparency, reliability, and capability is important, because it provides valuable information to attract investors. Full conformity with the best global practices brings a great advance in the dialogue with foreign investors and capital markets, as procedures are adopted that ensure the quality of information in the evaluation of mineral resources and reserves, comparability of this information, and transparency, enabling the investor to assess the risk and price his investment accordingly.
At the same time there has been an intensive dialogue between market agents and mining companies focusing on the capital market, prompted by the Invest Mining network. The outcome is that the Brazilian Stock Exchange (B3) is now committed to providing a regulatory and informational environment that favors investments and enables the Brazilian market to align with the best global practices and facilitate the sustainable growth of Brazilian mining companies through access to the capital market.
In this context, it is important to combine greater regulatory predictability with adequate financial instruments and market education, enabling Brazil to realize its mineral potential, contributing to local economic development, and expanding the capital base of the local private sector. For this process to take place, the country needs to introduce public policy instruments to reduce project risk and attract capital, since the equalization of capital to ensure the implementation of mining projects depends on domestic financial instruments and market cooperation with the various spheres of government. It is essential to create conditions, particularly with actions to promote and improve the business environment, for Brazilian mining to be able to develop and attract investments.
It needs to be recognized that one of the most critical points for attracting investments in Brazil is environmental licensing. Although the risks inherent in mining are duly priced, overcoming environmental licensing obstacles and raising funds for the mine implementation stage are fundamental points for the development of the asset. However, even though there is a sometimes overly bureaucratic process of environmental licensing, this does not compromise the level of competitiveness of mining companies, or even the attractiveness of investments.
The pressure for sustainable mining is undeniable, and the need to address predictability in the licensing phase is crucial for the advancement of projects at the implementation stage. In short, Brazil offers attractive opportunities, and it is important to consider the dilution of risks through the diversification of investments. Brazil can now be recommended as fertile territory for capital investment in the mining industry.
