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Giant deposit of so-called 'white gold of the future' discovered in Brazil. Australian company wastes no time and spends BILLIONS to buy Brazilian mining oasis

Written by Alisson Ficher
Published 17/08/2024 às 16:55

Company buys deposit for US$370 million. The billion-dollar investment reinforces Brazil as one of the largest producers of the “white gold of the future”. The question remains: is Brazil prepared to lead this new era of mining?

In the heart of Minas Gerais, a new “deposit” is transforming Brazil into the epicenter of a race for the “white gold of the future”.

Pilbara Minerals, one of the world's largest lithium miners, wasted no time and shelled out billions to secure its stake in one of the country's largest lithium deposits. What does this mean movement to Brazil and for the future of global mining?

Recently, a Pilbara Minerals announced the purchase of a vast hard rock lithium project located in Salinas, Minas Gerais. The transaction, valued at approximately US$370 million (around R$2 billion), was closed with Latin Resources, an Australian competitor.

This strategic move promises to increase 20% mineral resources of the Pilbara, with the potential to transform this operation into one of the ten largest in the world in the lithium sector, a mineral that is increasingly crucial in the manufacture of batteries.

The importance of Brazil in the global lithium scenario

The acquisition of this deposit in Brazil it is not just another investment; it puts the country in the spotlight of the global lithium industry.

The plant acquired by Pilbara is located close to the mines of Sigma Lithium, another giant in the sector, in the Jequitinhonha Valley region, one of the most promising areas for lithium extraction in Brazil.

According to Ana Cabral, co-founder and CEO of Sigma Lithium, in an interview with the newspaper Valor Econômico, “This transaction is extremely beneficial for Brazil and the critical mineral materials sector. The entry of Pilbara, the second largest in the world, reinforces our operational maturity and the consolidation of the sector in the country.”

Cabral also highlighted that Brazil offers an attractive environment for investments, with low production cost, wide operational scale and high traceability, always in compliance with the most rigorous labor and environmental standards.

Billions in investments to boost Brazilian mining

Pilbara Minerals was not content with just purchasing the deposit. The company also announced that it intends to invest more US$400 million over the next three years to expand its operations in Brazil.

These billion-dollar investments will boost the production of the “white gold of the future,” consolidating Brazil as a key player in the global battery market.

Cabral also emphasized the importance of legal security in the mining sector in Brazil, which has attracted international attention.

“The improvement in legal security is putting Brazil on investors’ radar. The environmental requirements are rigorous, but this only increases the quality of operations in the country and increases our international visibility,” stated the executive.

Brazil on the global lithium map

Despite the recent drop in lithium prices on the international market, production potential in Brazil remains strong.

With the growing demand for lithium in United States and in Europe, driven by the expansion of the electric vehicle industry, Brazil is positioned as one of the main suppliers of this “white gold of the future”.

During the investment announcement, Pilbara executives highlighted that the acquisition of deposit in Minas Gerais is a strategic step not only to strengthen its position in Latin America, but also to align with its global resource diversification strategy.

With this purchase, Pilbara positions itself to compete directly with the giants in the sector and meet the growing global demand for lithium batteries.

Is Brazil ready to lead the race for the white gold of the future?

Pilbara Minerals' billion-dollar investment in a deposit Lithium production in Brazil not only puts the country on the global mining map, but also raises the question: Is Brazil prepared to lead the race for the “white gold of the future”? How will the country face the challenges and take advantage of the opportunities that arise with this new era of mining?

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Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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