Pioneering Initiative To Accelerate Mineral Research in Brazil

ABPM Mobilization Seeks to Consolidate a Venture Capital Market for Mining

The Brazilian Association of Mineral Research (ABPM) recently took the initiative to orchestrate a significant meeting with various stakeholders interested in building a new paradigm for mineral research in Brazil. The meeting, which took place in São Paulo, opened the doors for intense collaboration among multiple relevant actors – including B3, BNDES, government entities, investment funds, consultancies, law firms, and companies in the sector.

The Construction of a Risk Market for Mining

The central theme of the meeting was the structuring of a venture capital market focused on mining, something already existing in countries like Canada and Australia. This movement primarily aims to provide more financing opportunities for mineral research.

Participants debated the mechanics of creating this risk market, considering the processes for listing operational mining companies. One possibility discussed was dual listing for pre-operational companies. Questions were also raised about potential regulatory limitations, the need for new regulations, strategies for venture capital operators, and tax incentives for mineral research.

Leonardo Barbosa from B3 highlighted the need for the evolution of mining in the Brazilian capital market, and suggested proper preparation of companies for the market. “The process involves building valuation, which should be done in the two years leading up to the IPO. One alternative would be to start with CRs,” Barbosa noted.

Visions for the Future of Brazilian Mineral Research

Luiz Maurício Azevedo, president of ABPM, expressed the importance of the initiative and highlighted the creation of a Fast Track for dual listing as a strategic move. Azevedo also emphasized the need for discussions with the Brazilian government about incentives for mineral research.

Pedro Dias from BNDES recalled the bank’s historical support for the sector, emphasizing the growing demand for critical minerals in the context of energy transition. Dias believes this demand can drive the creation of investment mechanisms in mineral research.

Miguel Nery, coordinator of the Invest Mining Network, emphasized that the current moment is favorable for initiatives like this, especially with Brazil’s perspective of regaining internationally recognized investment grade. He pointed out that the Brazilian mineral sector has great potential and can be extremely competitive compared to markets in other countries that have venture capital markets for mining.

This movement led by ABPM illustrates a shared willingness to advance and strengthen the Brazilian mineral sector, offering new opportunities for mineral research and bringing significant investments to this strategic sector for the country’s economy.