A unique fund in Brazil is expected to boost the mining sector

The Strategic Minerals Investment Fund (FIF) was launched at PDAC in Toronto and discussed at the Post-PDAC 2024 event held at Chapter Brasília

By Silvia Pimentel

The launch of the Strategic Minerals Investment Fund (FIF) by the Brazilian Development Bank (BNDES) and the Ministry of Mines and Energy (MME) was one of the major highlights of this year’s Prospectors & Developers Association of Canada (PDAC), the world’s leading mining convention held from March 3 to 6 in Toronto, Canada, which usually attracts around 30,000 participants.

This year, the delegation from the Chamber of Commerce Brazil-Canada (CCBC) comprised 17 individuals, including representatives of mineral projects and service providers in the sector, who had the opportunity to network with key players in mining.

The FIF in Strategic Minerals was also discussed at the “Post-PDAC 2024 – Insights on mining and PDAC in Toronto,” held on April 11 in Brasília by the CCBC, with the participation of representatives from the public and private sectors, as well as mining experts. It is the second consecutive year that Chapter-DF has brought to the Brazilian public the main topics and trends of the mining industry discussed during PDAC.

Attending the event in Brasília, Flávio Mota, head of the Department of Basic and Extractive Industries at the Brazilian Development Bank (BNDES), outlined the characteristics of the new fund, which is in the process of selecting a manager. The Brazilian government’s estimate is to mobilize up to R$ 1 billion in investments, with R$ 250 million in contributions from the bank itself.

For Diego Herrera, coordinator of the CCBC Chapter in Brasília and partner at Mattos Filho law firm, the BNDES initiative has historical relevance for the sector. “It is the first time that the bank allocates resources to a fund exclusively focused on mining, highlighting the potential of this market,” said Herrera.

He highlighted some particularities of the new fund for the selection of projects that will receive investments. The first is the allocation of resources, which should include between 15 to 20 projects involving mineral research, mapping of new deposits, development, and implementation of mines.

Another characteristic is that a significant portion of the resources will be allocated to small and medium-sized enterprises. Projects prioritizing minerals considered strategic for energy transition, decarbonization, and sustainable food production in Brazil will be selected.

“This bank initiative reflects not only an effort to boost the production expansion of minerals related to energy transition and decarbonization but also meets the aspirations to position Brazil in the world as an even more relevant player in the sector, contributing to the country’s economic development,” he emphasized.

Geological Mapping

The creation of the Decennial Geological Mapping Plan, announced by the National Secretary of Geology and Mining of the Ministry of Mines and Energy, Vitor Sabak, whose objective is to identify potential mineral resources not yet mapped, was another highlight.

The creation of the Decennial Geological Mapping Plan, announced by the National Secretary of Geology and Mining of the Ministry of Mines and Energy, Vitor Sabak, whose objective is to ideAccording to Herrera, this is a long-standing demand of the mining sector, considering that the subsoil in Brazil is still poorly mapped in relation to its mineral potential. “There are still few studies, in part due to the dimensions of the Brazilian territory. And mapping is the first step to effective exploration, which involves a time window of decades,” he explained.

Also participating in the event were Mauro Henrique Moreira de Sousa, director of the National Mining Agency (ANM); Augusto Pires, Project Coordinator of ADIMB; Cinthia Rodrigues, Research & Development Manager at IBRAM; Adriano Drummond Trindade, Partner at Mattos Filho Advogados; Daniella Leite, Business and Associate Director at CCBC; and Fernanda Arbex, Co-Coordinator of the CCBC Chapter in Brasília and Owner Partner at FPArbex Consultoria.

Check out below some pictures of CCBC’s participation in the PDAC 2024 event: