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The sale of a mineral deposit to China has rekindled discussions about Brazil's mineral sovereignty. The reserve is home to strategic resources such as rare earths, which are essential for clean technology. Experts criticize the low value of the transaction and the lack of policies to take advantage of the resources. What impact will this agreement have on Brazil's future?
The sale of one of the largest mines in the Brazil for just over R$2 billion, it raised a warning signal beyond the country's borders.
Located in Presidente Figueiredo, about 107 kilometers from Manaus, the Pitinga mine is not just a mineral exploration area, but a true hidden treasure in the heart of the Amazon.
However, what led the Chinese government to pay millions for this mine is not as obvious as it seems, and the strategic interests behind this transaction raise questions about the future of Brazilian natural resources.
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What is behind the sale of the Pitinga mine
The Pitinga mine, which has been operating for over 40 years, was managed by Mineração Taboca, a Peruvian-controlled company, until its recent acquisition by China.
The deal, which involved the purchase of 100% of the mine for US$340 million, was the target of criticism and theories about the true interests behind the transaction.
According to Samuel Hanan, former director of Paranapanema and former vice-governor of Amazonas, Chinese interest goes beyond tin, one of the minerals present in the mine.
“Pitinga’s true treasure is rare earths, such as yttrium and xenotime, which have crucial applications in the technology industry, especially in the production of batteries for electric and hybrid cars,” he said in an interview with the program Morning News from TV Tiradentes on Monday (02).
The strategic importance of the mine goes beyond uranium, which cannot be directly explored, as it is a Union asset.
This is because, in addition to being one of the largest Brazilian reserves of this radioactive mineral, Pitinga is home to cassiterite (tin), niobium, tantalum and a significant amount of rare earths, essential for the high-tech industry.
The role of rare earths in the global industry
Rare earths, such as yttrium and xenotime, are crucial minerals for the manufacture of technological devices, including rechargeable batteries, smartphones, wind turbines and solar panels.
Demand for these materials is growing at a rapid pace, in line with the transition to a low-carbon economy.
China, which already accounts for around 70% of global rare earth production, is showing strong interest in consolidating its leadership position in this market.
By acquiring the Pitinga mine, the country secures access to one of the world's largest deposits of these strategic minerals.
Hanan highlighted that “Brazil has the second largest reserve of rare earths in the world, but the lack of technology and internal investment has resulted in this valuable resource being handed over to foreign companies.”
Why is Brazil losing out on the sale?
The value of the transaction, approximately R$2 billion, was considered low by experts.
Hanan noted that if adjusted for the mine's strategic and economic potential, the price would be at least three times higher.
He also criticized the low taxation on mining in Brazil, which allows intensive exploitation of natural resources without a proportional return for the country.
For the former vice-governor, the federal and state governments have the responsibility to ensure that the exploration of these resources brings benefits to the population.
He highlighted: “Mining is not renewable. We are talking about finite and strategic assets. It is not enough to sell cheaply; we must ensure transparency and fair revenue collection.”
The position of the Amazonas government
The Amazonas government has declared support for foreign investments that respect environmental laws and promote economic development.
However, experts warn of the need for greater debate on the socioeconomic and environmental impacts of the sale.
Hanan stressed that while China is welcome as an investor, it is crucial to question the true purpose of the transaction..
“They are not just buying uranium or tin, but securing access to rare earths, which are the future of the technology industry,” he said.
The growing dispute over natural resources between world powers places Brazil in a strategic position on the global stage.
As China moves to secure the control of crucial minerals In the future, Brazil runs the risk of losing prominence due to the lack of public policies that value its resources.
And now?
The sale of the Pitinga mine exposes a gap in policies for protecting and exploiting Brazil's strategic resources.
The country faces the challenge of balancing attracting foreign investment with preserving its national interests.
With mineral wealth going away at a seemingly low price, the question remains: how can Brazil ensure that transactions like this bring real benefits to its economy and population?
