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Kaolin mineral deposit in Rio Capim will be auctioned on March 25 and could generate billions in the Brazilian economy
The Brazilian Geological Survey (SGB) has announced a historic auction for the exploration of one of the largest kaolin deposits in the country, located in the Capim River, in the state of Pará. With an estimated potential of 790 million tons of the high-purity mineral, the event is scheduled to take place on March 25, 2025, in Brasília.
The expectation is that the auction will attract national and international investors, given the high industrial value of kaolin, used in sectors such as paper, ceramics, cosmetics and paints. The government estimates that the contract with the winning company could generate investments of R$10 million in the initial phase of mineral research alone, in addition to directly impacting the local economy and Brazilian exports.
How important is kaolin and why is this auction so competitive?
Kaolin is one of the most valuable industrial minerals in the world, being widely used in the manufacturing processes of paper, ceramics, rubber, plastics and even cosmetics due to its high strength and purity properties.
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The deposit located in Rio Capim has one of the largest known reserves in Brazil, making this auction a strategic one for large companies in the mineral sector. The country is already among the largest exporters of this mineral, and the commercialization of this new asset could further consolidate Brazil's position in the global kaolin market.
What will the kaolin auction be like in Pará?
The auction will be divided into two distinct blocks:
- South Block and North Block, totaling 10 thousand hectares of exploitable area.
- The winner of the contest will have to invest at least R$10 million in additional research for a detailed evaluation of the deposit.
- Brazilian and foreign companies can participate, either individually or in consortium.
The contracts will be formalized through the Assignment of Mining Rights, and the winning companies will have to comply with strict environmental and regulatory criteria.
International event PDAC 2025 puts Brazilian auction on the radar of global investors
The importance of this auction was reinforced at the Prospectors & Developers Association of Canada (PDAC) 2025 Annual Convention, one of the most important events in global mining. Brazil presented the project as a strategic asset, arousing the interest of large international groups.
The head of the SGB Mineral Resources Department, Maisa Abram, highlighted that the auction not only strengthens the kaolin market, but also generates employment opportunities and technological innovation for Brazilian mining.
What are the expectations for the auction?
Industry experts predict that this auction could generate billions of reais in investments over the next few years, boosting the kaolin production chain and opening space for new industries focused on processing this mineral.
Competition between companies will be fierce, as Brazil has consolidated itself as one of the global leaders in high-tech mining, and the exploration of the Rio Capim deposit can guarantee long-term export contracts.
The event will take place on March 25th, at 10 am, at the SGB headquarters in Brasília, and the expectation is that the first contracts will be signed in 2025.
