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Kaolin Deposit in the Capim River Will Be Auctioned on March 25 and Could Move Billions in the Brazilian Economy
The Geological Survey of Brazil (SGB) announced the holding of 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 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 projects that the contract with the winning company could generate investments of R$ 10 million just in the initial phase of mineral research, in addition to directly impacting the local economy and Brazilian exports.
What Is the Importance of Kaolin and Why Is This Auction So Disputed?
Kaolin is one of the most valuable industrial minerals in the world, widely used in the manufacturing processes of paper, ceramics, rubber, plastics, and even cosmetics due to its high resistance and purity properties.
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The deposit located in the Capim River has one of the largest known reserves in Brazil, making this auction strategic for large companies in the mining 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.
How Will the Kaolin Auction in Pará Be?
The auction will be divided into two distinct blocks:
- South Block and North Block, totaling 10,000 hectares of exploitable area.
- The winner of the auction will have to invest at least R$ 10 million in additional research for a detailed assessment of the deposit.
- Brazilian and foreign companies may participate, either individually or in consortium.
Contracts will be formalized through Assignment of Mining Rights, and the winning companies will have to comply with strict environmental and regulatory criteria.
International Event PDAC 2025 Places Brazilian Auction on the Radar of Global Investors
The importance of this auction was reinforced at the Annual Convention of the Prospectors & Developers Association of Canada (PDAC) 2025, one of the most relevant events in global mining. Brazil presented the project as a strategic asset, drawing the interest of major international groups.
The head of the Department of Mineral Resources of the SGB, Maisa Abram, emphasized that the auction not only strengthens the kaolin market but also generates job 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 coming years, boosting the kaolin production chain and opening up space for new industries focused on processing this mineral.
Competition among companies will be fierce, as Brazil has consolidated itself as one of the global leaders in high-tech mining, and exploring the Capim River deposit could secure long-term contracts for export.
The event will take place on March 25 at 10 AM at the SGB headquarters in Brasília, and the expectation is that the first contracts will be signed still in 2025.
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