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While China Buys Mines in Brazil, It Bans Export of Essential Minerals to the U.S. in Another Chapter of Ongoing Trade Tension

Written by Alisson Ficher
Published on 05/12/2024 at 00:08
Updated on 05/12/2024 at 12:40
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China Prohibited The Export Of Essential Minerals To The US And Acquired One Of The Largest Mines In Brazil. With Valuable Rare Earths At Stake, The Transaction Raises Debates On Mineral Sovereignty, Low Prices And Strategic Impacts. As Tensions Between Beijing And Washington Increase, Brazil Faces The Challenge Of Protecting Its Natural Wealth And Valorizing Its Resources.

The International Scenario Is In Turmoil. In A Move That Promises To Further Intensify Global Trade Tensions, China Has Made A Decision That Directly Impacts The United States, While Also Expanding Its Presence In Brazil.

This Strategy, Which Involves The Control Of Essential Minerals, Brings To Light Issues Of Sovereignty, Economic Dependency And Power Disputes.

After All, What Is Behind This New Move From Beijing, And How Could It Affect Brazil And The World?

This Tuesday (3), China Announced The Ban On The Export Of Essential Minerals, Such As Gallium, Germanium And Antimony, To The United States.

These Materials Have Critical Military And Technological Applications, Such As In The Manufacturing Of Semiconductors, Fiber Optic Cables, Ammunitions And Batteries.

The Blockade, Which Had Already Been Partially Implemented In Previous Years, Is A Direct Response To Recent US Sanctions Against The Chinese Technology Sector.

The New Weapon In The Trade War

According To The Chinese Ministry Of Commerce, The Minerals Affected By The Restriction Have “Dual-Use” Applications, That Is, Both Military And Civil.

The Order, Which Took Immediate Effect, Also Requires A More Rigorous Analysis Of The End Use Of Graphite, An Essential Material For Electric Vehicle Batteries.

“In Principle, The Export Of Gallium, Germanium, Antimony And Graphite To The United States Will Not Be Permitted,” The Agency Announced In An Official Statement.

The Decision Reflects The Increasingly Aggressive Tone Of The Dispute Between The Two Largest Economies In The World, Competing For Control Of Global Supply Chains.

These Minerals Play Vital Roles In Strategic Technologies. Gallium And Germanium Are Used In Semiconductors And Infrared Equipment, While Antimony Is Crucial In The Manufacturing Of Ammunition And Armaments.

Graphite, On The Other Hand, Is The Main Component Of Rechargeable Batteries, Pillars Of The Global Transition To Clean Energy.

Western Dependency And Global Impact

Currently, China Dominates The Production Of Much Of These Strategic Minerals.

According To The Consultancy Project Blue, The Country Is Responsible For 59.2% Of The Global Production Of Refined Germanium And 98.8% Of Refined Gallium.

In The Case Of Antimony, China Produced 48% Of The Global Volume Extracted Last Year, A Figure That Reveals Other Countries’ Dependence On The Asian Giant.

The Impact Of These Restrictions Can Already Be Felt In International Markets. Data From Information Provider Argus Show That Prices Of Antimony Trioxide, For Example, Have Increased 228% Since The Beginning Of The Year.

This Price Increase May Generate A Global Rush For Alternative Sources, But The Scarcity Of Exploitable Deposits Outside China Places The West In A Vulnerable Position.

Brazil In The Spotlight: The Case Of The Pitinga Mine

While The US Faces Difficulties In Accessing Strategic Minerals, China Is Strengthening Its Influence In Latin America, Especially In Brazil.

A Clear Example Of This Strategy Is The Recent Acquisition Of The Pitinga Mine, Located In The State Of Amazonas.

Sold For Approximately R$ 2 Billion, The Mine Houses Minerals Such As Tin, Niobium And Rare Earths, Essential For High-Tech Technologies.

According To Experts, The Value Of The Transaction Was Considered Low Given The Strategic Potential Of The Mine.

Samuel Hanan, Former Vice Governor Of Amazonas, Highlighted That The Main Attraction Of Pitinga Is Not Just Tin, But The Rare Earths, Such As Yttrium And Xenotime.

These Minerals Are Indispensable For The Production Of Electric Car Batteries, Wind Turbines And Technological Devices.

“Brazil Has The Second Largest Reserve Of Rare Earths In The World, But, Unfortunately, It Lacks Technology And Policies That Value These Resources.

That Is Why We End Up Delivering Our Wealth To Foreign Companies,” Hanan Said In A Recent Interview.

The Debate On Mineral Sovereignty

The Sale Of The Mine Has Revived The Debate On Brazil’s Mineral Sovereignty And The Need For Stronger Public Policies To Protect National Interests.

“Mining Is Not Renewable. We Are Talking About Finite And Strategic Goods. It Is Not Enough To Sell Cheap; It Is Necessary To Ensure Transparency And Fair Revenue,” Hanan Emphasized.

In Addition, The Government Of Amazonas Has Positioned Itself In Favor Of Foreign Investments, Provided They Respect Environmental Laws And Generate Local Economic Development.

However, Experts Warn Of The Risks Of Becoming Excessively Dependent On External Partners Without Ensuring Counterparties That Benefit The Brazilian Population.

Consequences For The Future

The Growing Dispute Among Global Powers For Control Of Essential Minerals Places Brazil In A Strategic Position In The Global Scene.

While China Solidifies Itself As The Largest Producer And Controller Of These Resources, The United States Faces Significant Challenges To Diversify Its Supply Chains.

On The Other Hand, Brazil Seems To Be On The Sidelines Of This Dispute, With Valuable Resources Being Sold For Prices Considered Low And Without A Clear Policy To Leverage These Wealths For Its Own Benefit.

How Can The Country Reverse This Scenario And Ensure A More Promising Future For Its Economy?

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Euclides Maria
Euclides Maria
10/12/2024 10:26

Essa venda desta jazida para a China, teve anuência do Congresso ou o Presidente pode ir vendendo o Brasil pra quem quer comprar?

Albino Costa
Albino Costa
10/12/2024 09:23

A China comprou mesmo? Onde? Quando? Quem vendeu? Pelo que sei, isso é “fake”.

Ivo Cezar de Brida
Ivo Cezar de Brida
10/12/2024 08:12

Será que é tão difícil de entender? Se não temos tecnologia para transformar esses **** em produtos de alta tecnologia, então que os deixemos no nosso subsolo, para que os aproveitemos no futuro quando as outras nações já não os tiverem mais!
Afinal, quem toma a decisão de vender uma mina de minérios raros?
É bom verificar nos paraísos fiscais se não existe alguma conta gorda em nome desses indivíduos!

Alisson Ficher

Jornalista formado desde 2017 e atuante na área desde 2015, com seis anos de experiência em revista impressa, passagens por canais de TV aberta e mais de 12 mil publicações online. Especialista em política, empregos, economia, cursos, entre outros temas e também editor do portal CPG. Registro profissional: 0087134/SP. Se você tiver alguma dúvida, quiser reportar um erro ou sugerir uma pauta sobre os temas tratados no site, entre em contato pelo e-mail: alisson.hficher@outlook.com. Não aceitamos currículos!

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