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Bahia is the second largest gold producer in Brazil and could receive investments of US$30 million. New gold cycle should reach 350 thousand ounces per year by 2027.
Brazil is entering a new gold cycle, with at least ten new mining projects for the precious metal about to begin legal production between this year and 2027. These ventures, spread across nine states, represent a total investment of R$7,6, 54 billion, mainly in Bahia. The 2024% appreciation in the international price of gold in the last three years has driven the emergence of these new projects in XNUMX. Gold exploration in Bahia promises not only to increase national production, but also to strengthen the regional economy, consolidating the state as a One of the main mining centers in Brazil, Bahia is currently the second largest producer of Brazilian gold.
Bahia is the second largest gold producer in Brazil
With this new Brazilian gold cycle, Bahia has become the second largest gold producer in Brazil, Jacobina is the 3rd largest producing municipality in the country and new projects are emerging in the State. One example is the new gold production area in Bahia that is being offered to the private sector by Companhia Baiana de Pesquisa Mineral (CBPM) in the municipalities of Brumado and Aracatu.
On the other hand, the Canadian Pan American Silver, owner of a complex of seven underground gold mines in the Bahian city of Jacobina, is investing between US$20 million and US$30 million to increase production, which was 195 thousand ounces of gold in 2022. A new phase could reach 350 thousand ounces per year in 2027.
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Bahia is home to the Fazenda Brasileira and Santa Luz mines, in the municipalities of Barrocas and Santaluz, both in the Equinox Gold, self-declared largest gold producer in the Americas, which also operates in Minas Gerais and Maranhão.
Understand why Bahia is the second largest gold producer in Brazil
According to Manoel Barretto, technical director of CBPM, in a report, the Jacobina mine has been explored since the times of the Empire, but the tradition of large mines is to evolve. Increase production with new technologies. CBPM maps and bids for mining areas, which yield royalties of 2% to 6%.
Bahia is the second largest gold producer in Brazil and the rise in gold has to do with China, which since the end of 2022, has been buying gold at an unprecedented rate to increase its international reserves and have an alternative to the US dollar. United.
Tensions between the two countries, combined with wars in Ukraine and the Middle East, climate change and fears of new pandemics, contribute to greater global demand from countries, banks and investors for the precious metal.
Gold reaches historic high in 2024
In May, gold closed at a new all-time high and accumulated gains, amid the rally driven by the Federal Reserve's interest rate cuts on the horizon. A talk reached the highest levels since 2013, amid a shortage of the metal and reinforced demand in the Chinese market.
At Comex, the metals division of New York Mercantile Exchange (Nymex), gold delivered in June closed up 1,34%, at US$2.417,40 per troy ounce. Meanwhile, silver rose 4,63% to $31,26 per troy ounce. During the week, gold rose 1,79%.
The rise in gold prices signals that investors are anticipating interest rate cuts by the Fed later this year, but may be uncertain about the prospects for crushing inflation without throwing the U.S. economy into recession, also known as a soft landing. Some investors are buying into the hype surrounding gold bars as prices rise, causing them to rise even higher.
