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China and the US intensify investments in Brazilian minerals: understand how the rivalry between the powers impacts Brazil, boosts the economy and redefines the global market for natural resources.
Investments in critical minerals: A new strategic dispute between China and the United States appears to be gaining momentum, this time to secure access to essential sources of critical minerals. These resources are indispensable for the production of advanced technologies such as batteries, semiconductors, electric vehicles and defense equipment, placing them at the center of global tensions. In the last week of November, at least three important initiatives highlighted the intensification of this race for dominance in the minerals sector, highlighting the geopolitical and economic importance of the issue. While China seeks to consolidate its role as the world's largest supplier, the United States is stepping up efforts to diversify its supply chains and reduce dependence on the Asian giant.
Check out the main strategies adopted by these countries, the impact of this dispute on the global market and why critical minerals are considered one of the pillars of the economies of the future. In addition, we will analyze how this competition can influence other nations, emerging markets and even the stability of international relations.
China and US investments in minerals strategic
On the Chinese side, China Nonferrous Mining Metal Company (CNMC) acquired the Taboca Mining, producer of tin, tantalum and niobium, which was controlled by Peruvian Minsur group, for the amount of US$ 340 million.
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In addition, another Chinese company Baiyin Nonferrous closed a contract to purchase Mineração Vale Verde, a copper producer in Alagoas and controlled by the investment fund Appian Capital, for a value, not confirmed by Appian, of US$ 420 million.
Regarding the Americans, the Export-Import Bank of the United States committed to financing US$ 266 million for Lithium Ionic to build its Bandeira lithium project, in Vale do Lítio, in Minas Gerais.
Mineração Taboca, in its Pitinga mine, located in the municipality of Presidente Figueiredo, in Amazonas, has significant reserves of minerals such as tin, containing niobium, tantalum, zirconium, uranium and rare earths.
An assessment study conducted a few years ago indicated total resources of 618 million tons of ore, of which 164 million tons were measured, 260 million tons were inferred, and 194 million tons were indicated. In addition, the study indicated an additional potential of 568 million tons, which would raise the total resources to 1,186 billion tons.
Why is China investing in the Brazilian mine?
Tin, one of the materials extracted from the mine, is a key ingredient in the production of semiconductors, strategic items in the race for global technological leadership. Although the deal does not pose a direct threat to the country's national security, analysts have expressed concern about the country's strategic image on the global stage following the sale.
The dispute between China and the US is not limited to the minerals sector, but extends to the economic, technological, military and geopolitical sectors. In recent years, Beijing has intensified its search for strategic minerals in regions such as Latin America, while Washington has tightened sanctions against Chinese companies linked to semiconductors and advanced technology.
According to experts, the purchase of Taboca reflects the growing presence of Chinese investments in Latin America, a region that is described as a “playground for China”. “ The Latin America opened its doors, often negligently, allowing Beijing to acquire strategic assets such as mining companies of great importance to the global market.
Understand how investment dispute between China and the US could affect Brazil
Recently, the dispute between China and the US in the minerals sector took another step forward, with the Asian country banning the export of strategic materials (such as gallium, germanium, antimony and graphite) to the United States. The measure, announced on December 3, is a response to US restrictions on China's access to technological components and is expected to have global repercussions, including for Brazil.
A report from the United States Geological Survey (USGS) estimates that China's blockade could have an economic impact of up to $3,4 billion in the US, but the repercussions could go far beyond the US. Although Brazil is not a major exporter of strategic minerals, the increased cost of electronic products imported from China and the US could directly affect Brazilian consumers and companies.
