The state of Mato Grosso do Sul has the first largest manganese reserve and the third largest iron ore reserve in Brazil, with great potential to increase its mineral exploration with new mining companies in 2022
With the first largest manganese reserve and the third largest iron ore reserve in Brazil, the state of Mato Grosso do Sul should expand its mineral exploration in 2022, considering that three mining companies are setting up in the state. 3A Mining 4B Mining are located in the municipality of Corumbá and together they will produce 4 million tons of iron ore annually. The production chain is also betting on improving logistics with the return of the bidding process for the Malha Oeste railway.
The mining companies that are setting up in Mato Grosso do Sul are 3A Mining and MPP/4B Mining in Ladário and Corumbá, Morro Tromba dos Macacos and Morro do Rabicho. The other mining company is São Francisco, of basalt, which will produce rock dust in the city of Inocência. Together, the miners will generate more than 300 jobs and more rents to the state of Mato Grosso do Sul.
Secretary Jaime Verruck, from Semagro (Secretary for the Environment, Economic Development, Production and Family Agriculture) informed that they are looking for new investors and talking to companies that already have approved research or mining ordinances. In addition, they are monitoring the negotiation of Vale and the player that will assume the space that the company occupies today in the State. The objective is for this new owner to expand production of iron ore and manganese minerals in the coming years.
According to Verruck, 4B Mining is already extracting iron ore. There are two iron ore mining companies and another in the area of basalt crushing for the Civil Construction and Agriculture industry, which are the so-called remineralizers, or the so-called Pó de Rocha.
Importance of mining for the state
According to MoreMinas, the secretary also highlighted the importance of Vale for the mining of Mato Grosso do Sul and its contribution and company model to the state's economy, in addition to saying about the hope that the new investor will also be up to a company the size of OK.
Verruck signaled that the new player will come to make new investments in Mato Grosso do Sul, in addition to giving continuity to this important product. Mato Grosso do Sul is a mining state, and it is also the seventh state in CFEM collection and which has at its base of economy the production of iron ore, phosphate, granite, manganese ore, marble, limestone and basalt.
Finally, the secretary confirmed that with the signaling of the Malha Oeste concession itself and the railway authorization regime and the return of navigability on the Paraguay River, the perspective is that there will be an increase in the production and export of iron and manganese ore, in addition to shipping to the domestic market.
Mineral sector challenges
The biggest impasse in the mineral sector is the financing of projects in the country, especially for small and medium-sized mining companies. Mato Grosso do Sul has the Constitutional Fund of the Center West - FCO, which has the power to finance these companies.
Eduardo Pereira, executive secretary of Semagro's Mineral Production Chain, stated that through the FCO, they can release up to 80%. The projects presented to Mato Grosso do Sul, in general, are from national funds, own resources and private banks.
Pereira also explains that other investments in metallic minerals are looking for mechanisms that allow the mining project to get off the ground and turn into mining, which are those of participation and funding on the stock exchange, and also investments via private funds. The executive secretary also states that another financing model that is widely used is advance sales of ore (streaming).
