Brazil plans 270 billion dollars investment in the mining sector

The Minister of Mines and Energy Edison Lobao announced on 8 february that Brazil would invest 270 billion dollars in the next two decades in the mining sector and triple the production of gold, iron and copper by 2030. As part of the new policy, the government will discourage exports of crude raw materials and encourage value addition. The plan document notes the concerns on excessive dependence on China and calls for diversification of markets. There will also be reforms in the mining laws.

The targets of production increase from 2008 to 2030 in million tons are as follows:

Iron ore 351 to 1098

Gold 55 to 200 ( not in million, of course)

Copper 216 to 1000

Alumina 7.8 to 25.7

Aluminium 1.6 to 3.2

Raw Steel 33.7 to 116

Nickel 25000 tons to 132,000 tons

The Mining investment plan is the third in the series of mega investment plans of Brazil. The first was the 220 billion dollar investment in petroleum sector and the second, an equal amount of investment in infrastructure including for the 2014 World Cup and the 2016 Olympics.

Indian companies should target Brazil for projects and also for export of mining equipments and machinery.

Besides Brazil, they should focus on Peru, Colombia, Chile, Boilivia and Argentina which are also rich in mineral resources. Jindal, Aditya Birla group and Essar have already made entry into the region.

This week, Tega Industries Limited of Kolkatta announced acquisition of a Chilean company Acotec S.A. which is a $35 Mn company providing products and solutions for abrasion, corrosion and fluid transportation systems to the mining industry in Chile, Peru, Argentina and Bolivia.
Tega Industries specialises in mineral processing and material handling technlogies and equipments for the mining industry. It has global presence including in Brazil, USA, Australia and South Africa.