The main focus in Ibram's speech was on expanding production over the next 5 years, using the amount invested in the mining sector. But the question of the ANM in relation to the destination of funds in Brazil, was criticized by the president

The president of the Brazilian Mining Institute (Ibram) made some statements this past Tuesday, (26/04), about the future of production and expansion in the mining sector in Brazil and stated that the segment will receive an investment of BRL 200 billion over the next 5 years. In addition, the executive took the opportunity to criticize the lack of commitment with the National Mining Agency (ANM) in relation to financial transfers in the sector.

Production in the mining sector in Brazil will benefit greatly over the next 5 years, with a total investment of R$ 200 billion to be made

The mining sector in Brazil is one of the biggest movers of national capital, due to the high reserves that the country has in relation to profitable ores. Thus, Ibram announced that an investment of R$ 200 billion will be applied in the segment over the next 5 years, to encourage the development of more and more projects and undertakings in the sector and expand its production in the country. 

Among the main minerals that will benefit from the investment project to expand production, the highlight is the iron ore segment, which concentrates one third of the planned investments. In addition, a good portion of the investments will be destined to the production of fertilizers and bauxite, since each one is investment forecast of US$ 5,7 billion (about R$ 28 billion) between the years 2022 and 2026.

The investment package will also be applied within the process of decommissioning structures that present risks to the population, to prevent new disasters from happening in mining production in Brazil. Thus, a total of US$ 900 million (R$ 4,5 billion) will be invested in investments in de-characterization of dams similar to those that broke in Brumadinho (MG) and Mariana (MG) over the next 5 years. In this way, Ibram not only seeks to encourage an expansion of mineral production, but also to ensure greater safety and efficiency in the Brazilian sector. 

President of Ibram takes advantage of the investment plan announcement moment to criticize the lack of commitment with the ANM in the financial transfer and mining in indigenous lands

Still in his interview about the future of the mining sector in Brazil, the president of Ibram seized the moment and criticized the contingency of ANM funds, which is responsible for regulating the sector and collecting royalties charged on mineral production, but is not making a correct transfer to the segment. Thus, the agency stated that she should be around 7% of revenue from royalties, which totaled R$ 1,5 billion in the first quarter, but has received only 1%.

Mineral production in Brazil showed a sharp drop at the beginning of this year, given the slowdown in Chinese demand, which is trying to prevent a new wave of Covid-19 and reduced its steel production during the Winter Olympics. Thus, Ibram stated that this was the main problem in relation to financial transfers to the ANM, 

Finally, Raul Jungmann, the president of Ibram, left the ANM aside and criticized the bill that approves mining in indigenous lands, stating that “It is necessary that this bill be absolutely clear on the issue of illegal mining, of gold mining” , since the proposal leaves open many questions of transparency regarding the legality of this production.