Mining – In Addition to Generating Development and Jobs, 90% of Mining Companies in Brazil Are Micro and Small Enterprises

Written by Roberta Souza

Published on 17/11/2020 at 09:40

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Today in Brazil, Micro, Small, and Medium-Sized Mining Companies Predominate in the Development and Job Creation in the Mining Sector

Currently, in the mining sector, 90% is predominantly contributed by micro, small, and medium-sized mining companies. These companies, in addition to contributing to the development of the region, generate numerous jobs in the sector. According to data from ANM – National Mining Agency, in 2017, micro and small mining companies had a significant 88% representation in the mining sector in Brazil.

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A major issue the country faces is related to illegal exploration activities. The activities carried out manually are characterized by limited technical and management knowledge of the workforce, lack of technical complexity and resources, and will have a significant impact on the environment.

Wilson Brumer, President of the Board of Directors of IBRAM, says that “We cannot allow the image of the sector to be tarnished by what is extracted illegally, which certainly brings other consequences for our country, possibly passing mineral resources to third parties through other means, such as via organized crime.”

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Representation of Micro, Small, and Medium Mining Companies:

Large – 1.4% of the total

Medium – 10.4% of the total

Small – 28.9% of the total

Micro – 59.3% of the total

One convenient way to strengthen small-scale mining is through the establishment of cooperatives, aimed at organizing members for activities, seeking better utilization of minerals, and achieving economic diversification and social inclusion.

According to Alex Macedo, Technical and Economic Analyst at the Brazilian Cooperatives Organization – OCB, “Cooperatives serve as an important instrument for formalizing informal mineral activity, gaining access to mineral rights, citizenship, credit, public policies, training programs, marketing their production, and regional development with social inclusion.”

The OCB system consists of 95 entities and approximately 59,000 members, miners, or small mining companies, who have discovered the possibility of work and income, structured management, and the opportunity for organizational support with legal backing in this model.

Mining – In Addition to Generating Development and Jobs, 90% of Mining Companies in Brazil Are Micro and Small Enterprises

Today in Brazil, Micro, Small, and Medium-Sized Mining Companies Predominate in the Development and Job Creation in the Mining Sector

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Representation of Micro, Small, and Medium Mining Companies:

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