Incentive to Mining: The Need for a Venture Capital Fund in Brazil

A Milestone in the Sector: Experts Discuss New Funding Mechanisms for the Growth of National Mining

The second day of the 8th Meeting of Small and Medium Mining, part of Brasmin in Goiânia, was marked by an impactful panel. The discussion centered on emerging funding mechanisms and attracting investments for the mining sector. Miguel Nery, coordinator of the Invest Mining network, moderated the debate and pointed out the necessity for Brazil to establish itself as a major player in global mining, similar to Australia and Canada.

Creating a Favorable Environment for Mineral Research

Nery emphasized the urgency of developing an appropriate business environment that encourages mineral research. He advocated for the establishment of a capital market dedicated to venture capital, with the support of B3, Brazil’s official stock exchange, to stimulate investments in the mining sector. Nery stated that capital has become less speculative and Brazilian mining companies are more robust and mature.

“Amid the energy transition, we are seeing increasing interest from international investors in implementing projects in the country in the short term”, Nery noted. According to him, Invest Mining was created precisely to improve the investment landscape for mining in Brazil and foster interaction between companies and investors. One of the network’s main initiatives is to enable the listing of mineral research companies, which are not yet operational, on the stock exchange, thus enhancing the discovery of new deposits and diversifying industrial production.

The Crucial Role of BNDES and B3 in Financing Brazilian Mining

Pedro Dias, a mining expert, discussed the crucial role of BNDES in financing Brazilian mining. He highlighted the need for an aligned strategy to attract new investments for research projects. Dias stated that the bank has supported large projects, in addition to around 1800 small and medium-sized enterprises. He announced that BNDES intends to support projects for the expansion of critical minerals for energy transition and food security, reinforcing innovative and sustainable processes.

In his presentation, Leonardo Rezende from B3 admitted that the Brazilian stock market needs to improve to better serve the mining sector. “B3 is ready to support the sector in developing the market,” Rezende said, explaining how B3 operates and what mechanisms are available to support the mining sector.

Ricardo Ré from the startup Hand Bag addressed the acceleration of nascent projects in Brazil, emphasizing the challenges companies face in raising funds. Luiz Mauricio Azevedo, president of the Advisory Council of ABPM, warned about the challenges miners face in Brazil, including overcoming risk and obtaining capital support. He noted that few Brazilian investors benefited from the Sigma boom, which reported billion-dollar gains in recent years with its lithium project in the Jequitinhonha Valley.

The panel also included Edson Del Moro, manager of Hochschild in Brazil, who discussed the gold project in Mara Rosa, Goiás.