Supportive government policies and initiatives have instilled confidence among investors, fostering a positive climate for the mining sector.
Could you update us on SRK Brazil’s progress since 2023?
Since January, we have seen a marked increase in requests. Last year, SRK Brazil
supported a major mining company in Brazil with their due diligence process.
Since then, quite a few due diligences requests came in from various mining
companies and group of investors. We are seeing in Brazil a strong movement
towards critical minerals. Copper and gold have been solid; lithium, rare earths
and nickel are also very active.
What do you think is driving the surge in due diligence requests in 2024?
The high demand for critical minerals globally is a significant factor. Brazil has
a significant potential for critical minerals. Significant reforms and regulatory
improvements have enhanced the business environment, reducing bureaucratic
hurdles and attracting more foreign capital.
The increase of investments in the mining sector can also be related to infrastructure developments, such as improved logistics and transportation networks that can potentially lower operational costs and social and economic commitments. The National Mining Agency recently updated legal requirements for
mine closure, which is also pushing mining companies towards a more sustainable
scenario. While this alone does not justify increased interest in Brazilian
mining, supportive government policies and initiatives have instilled confidence
among investors fostering a positive climate for the mining sector.
Can you give us your perspective on the regions in Brazil with the most significant
potential for future growth?
There is significant potential for critical minerals in the northeast and southeast
of Brazil. Investors are increasingly interested in these areas, seeking support to
validate geological data and make informed investment decisions.
What are SRK Brazil’s plans for the next year?
We do not envisage expanding our business units shortly but invest more in critical
disciplines like hydrology, rock mechanics, water management, and mine closure.
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