Brazil’s junior miners unite to push critical minerals agenda

Junior mining companies developing critical minerals projects in Brazil are banding together to advocate for their shared interests as the country seeks to be a key participant in the race for the strategic resources.

Nine companies — including rare earths miners Aclara Resources Inc. and Meteoric Resources NL and lithium producer Pilbara Minerals Ltd., known as PLS — are forming the Critical Minerals Association, known as AMC. Another trade group, Ibram, already represents companies that account for about 85% of Brazil’s mineral output.

AMC’s launch follows remarks by President Luiz Inácio Lula da Silva during a trip to Mozambique, where he said Brazil won’t settle for being a mere exporter of critical minerals and will instead demand that foreign investors help build local industry. AMC said it supports that vision but warned that without stronger financial guarantees, smaller miners may be forced to pledge future production as collateral for international loans.

The association’s top priority is to get government and lawmakers’ support to establish guarantee mechanisms that would allow pre-operational miners without cash flow to access financing, executive director Frederico Bedran said in an interview. Other key goals include cutting red tape for project licensing and introducing tax incentives to stimulate the development of downstream industries, he said.

“Brazil faces two risks: Missing the market window and remaining a commodity exporter,” Bedran said. “We need to get mining projects operational within three years to avoid losing ground to other producers.”

(By Mariana Durao)