Image courtesy of Anglogold Ashanti

Iron production is the engine of Brazil's mining sector, dominating the industry by volume. The country's leading player, Vale, has achieved several milestones this year. Following 2023's production achievements, when production increased by 29% yearly, 2024 has been no different. Its Q2 2024 figures point to an increase of 2.4%, or 80.6 million t/y, putting the company on track to reach its projected guidance figures of producing between 310 and 320 million t/y in 2024.  Vale also reported reaching 100% renewable energy consumption this year. 

Vale is pursuing an international strategy of developing Mega Hubs worldwide, including in Saudi Arabia, establishing industrial complexes to manufacture low-carbon steel products and supply briquettes. In the lead-up to the Rio de Janeiro G20 summit this year, delegations from Saudi Arabia's Ministry of Mining have visited Vale facilities in the country. Vale's partnership with Saudi Arabia's Manara Minerals, a joint venture between Ma'aden, Saudia Arabia's state-owned mining company, and Saudi Arabia's Public Investment Fund, was completed this year, with Manara Minerals acquiring 10% of Vale Base Metals Limited (VBM).

Samarco is continuing its journey of reconsolidation, and in 2023, approved a debt renegotiation deal and a R$1.6 billion investment into the company's production process, increasing production capacity to 60% and constructing new filtration systems. Samarco is also investing heavily in its operational workforce and has plans to hire 600 direct employees. The company's total workforce, over 15,000 strong, now exceeds its pre-2015 levels.  Samarco also reports that it has achieved 75% completion on the de-characterization project of the Fundão dam, one of Latin America's largest. Discussing Samarco's gradual recovery of production and operations, Rodrigo Vilela, Samarco's CEO, said: "In 2025, we aim to produce approximately 15 million tons of pellets, which positions us as one of the second or third-largest exporters globally, a significant player as we were in the past. Our focus remains on completing this project, our primary expectation for 2025." 

Discussing some of the technical and operational challenges that Samarco is confronting as it continues to revamp its operations, Vilela said that finding use for the enormous volumes of waste material has been the company's principal challenge. On this topic, Vilela added: “The primary challenge is consolidating our operations while introducing new technologies, particularly finding uses for our waste materials. We are already constructing roads and pavements using these by-products, representing a significant challenge for the entire industry, not just Samarco.” 

Beyond Vale, there are new entrants to the iron industry, which include Lhg Mining, part of the J&F Group, the largest private conglomerate in Brazil. J&F Group acquired assets from Vale in 2022, including the Santa Cruz and Urucum mines in Mato Grosso do Sul. Its operations include a fully integrated supply chain, and river ports to transport material via barge through the Paraguay waterway to ports in Uruguay, particularly in Nueva Palmira. Discussing Lhg Mining's rapid adaptation and entrance to the market, Claudio Alves, director of new business, said: "Our 12-month investments since the acquisition include growing our team by 200%, recruiting senior leadership, and revamping processing systems to handle 12 million t/y, now aiming for 16 million t/y." 

The company has been able to lean on the financial muscle of the J&F Group, investing heavily in updated processing systems, new fleets of equipment and qualified teams. Targeting European markets for export, Lhg Mining is producing high-grade lump ores and is depending on Europe's transition from high to low-emission industries, introducing carbon pricing and ESG sensitivity. Lhg Mining's growth has been explosive, but the company has encountered some bottlenecks. This year's principal challenge has been a drought in the region, impacting the river barge transportation system. As Alves explained: "Our main challenge involves managing complex logistics in a remote region bordering Brazil and Bolivia. Our ore travels 2,500 km along a river route to reach a shallow water port, necessitating innovative solutions to streamline operations and lower costs." 

3A Mining, an iron producer that operates in the same region, has an installed capacity of 1.5 million t/y and depends on the same transportation system as Lhg Mining. The drought has postponed 3A Mining's efforts to double production figures. Discussing the industry's challenges in the region, Fabio Assumpção, mining operations, logistics & sales director, said: "Transportation constraints in Mato Grosso do Sul have been a challenge. The region has experienced a severe drought, hindering the transport of materials from the Corumbá river port to the maritime port in Uruguay. As a result, we have limited our production capacities this year." 

In Minas Gerais, the country's mining heartland, Belo Horizonte-based LGA Mineração e Siderurgia is an iron ore producer with a capacity of 2 million t/y at the Congonhas plant. The company, which supplies Vale, CSN, and Gerdau, is currently in the engineering phase of increasing its capacity to 4.5 million t/y.  Discussing how LGA has diversified its business by establishing commercial partnerships, Paulo Toledo, LGA Mineração e Siderurgia's CEO, said: "Before the Mariana accident in Brazil, we invested in equipment to treat our waste, specifically in 2015 when we established a collaboration with Jing-Jin, the largest manufacturer of filter presses globally. Today, we represent them in Brazil, supplying equipment for mining, waste treatment, water treatment, chemistry, and fertilizers." 

Brazil is also one of the world's leading tin producers. Mineração Taboca, which in 2008 became part of the Peruvian company Minsur, operates the Pitinga mine, a rich tin and tantalum mine located in the Amazon Region, and a tin smelter in Pirapora do Bom Jesus, near São Paulo. Mineração Taboca is the leading mining company in Amazonas, and Eduardo Orban, Mineração Taboca's CEO, discussed some of the logistical and operating challenges faced by the company: "We are adjacent to a biological reserve and two Indigenous communities, with one of them we have a long-term agreement to give access to our properties. Maintaining good relationships with these communities is crucial." 

Mineração Taboca has invested heavily in its ESG credentials. Orban said: "We have responsible mineral initiative certifications for our tin and tantalum smelters, controlling the entire supply chain from our mines to smelters. Taboca is ISO 9001, ISO 14001, and ISO 45001 certified. We follow ICMM sustainability requirements." 

In Pará state, MRN – Mineração Rio do Norte, Brazil's biggest bauxite producer and exporter, is continuing work on the life extension of the East Zone, delivering the Front-End Loading phase on the mining project and transmission line. The company is also developing its West Zone bauxite project, which will supplement MRN's production and is expected to come online in 2028. Like Taboca, MRN operates in a sensitive environmental area and has focused its efforts on engaging with local Quilombo communities. A crucial element of this regards tailings dams, and MRN has imported specialized equipment from Australia to increase the solid content of tailings. Guido Germani, CEO of MRN, said: "We have focused on accelerating the tailings drying, leveraging the sun's natural drying power. We are also exploring remote operations for mining, mainly for the big dozers." 

Largo Inc, which runs a vanadium operation located in Maracás in Bahia, is navigating historically low vanadium prices. To manage volatility in the market, Daniel Tellechea, CEO of Largo, commented: “Largo currently operates with two main strategies: a short-term strategy focusing on navigating low commodity prices through efficiency and restructuring and a long-term strategy aimed at increasing vanadium and ilmenite production.”

Even at high gold prices, financing eludes gold juniors
Gold prices are reaching historic highs, and producers are reaping the benefits. Aura Minerals has since 2020 had Brazilian depository receipts, making it the first gold company listed in Brazil, in addition to its TSX listing.  High prices have allowed Aura Minerals to deliver US$170 million in value to shareholders through new dividends and share buybacks in the last three years. The company is targeting production of 450,000 oz/y by 2025. According to Rodrigo Barbosa, CEO of Aura Minerals: “We are focused on unlocking value in three areas: developing three Greenfield projects (Almas, Borborema and Matupá) on time and on budget, significant investment in exploration, increasing our mineral resources and reserves, and growing through M&A."   

Aura Minerals' exploration efforts include the Serra da Estrela project in Carajás, Pará, a copper IOCG deposit that the company wants to develop into a copper mine. According to Barbosa, this development will contribute to Aura Minerals' diversified metals strategy, maintaining a balanced portfolio with 30-40% of revenue from copper and the rest from gold. 

In Brazil's north, Canadian companies such as the TSX-V listed Bravo Mining are developing projects in Carajás. The exploration and development company is advancing its Luanga PGM+nickel deposit. Following a drilling and aerial mapping campaign and identification of anomalies, 17 high-priority targets for exploration were confirmed. Luis Azevedo, CEO of Bravo Mining, said: "T5 delivered the best yet copper-gold intercept of 2024 globally and top five over the last five years. The subsequent drilling on T5, hole 004, also ranked as the third-best intercept globally." 

Bravo Mining recently submitted environmental reports for the Luanga project. Discussing the potential scale of this project, Azevedo mentioned: "With clear evidence of mineralization at depths up to 450 meters, Luanga's resource potential could feasibly double or triple, underpinning our long-term mine life projection of +20 years", adding that "Carajás represents a frontier mining region where significant deposits are still viable."

Kinross, another major gold producer in the country, is riding the wave of high prices. The company produced 588,000 ounces of gold in 2023, equivalent to 22% of Brazil’s total gold production. Gilberto Azevedo, President of Kinross Brasil commented that “For 2024, we hope to maintain the same level of production”, adding that in Brazil, “In 2024, we project an approximate investment of USD$ 146 million.”

Major gold companies are establishing production in Brazil. Hochschild Mining, the Lima based LSE listed gold miner, has entered commercial production at their Mara Rosa mine, based in Goiás state. The company, which entered Brazil for the first time in 2022, plans to produce over 100,000 ounces of gold in the first four years of production. Hochschild also recently signed an agreement with Cerrado Gold, giving the miner the option to purchase 100% interest in the Monte do Carmo gold project in Tocantins, covering 21 mineral concessions.

Pará state is becoming a hub for gold mining. G Mining Ventures, the Canadian TSX listed gold producer, is also present in Tocantins. It entered Brazil in 2021, through the acquisition of Eldorado Gold. The company’s Tocantinzinho gold mine poured gold for the first time in July 2024, and the mine’s feasibility study indicates a projected production of 175,000 ounces of gold per year for the next 10 years, turning G Mining Ventures into a significant gold producer in the country. 

Gold projects are advancing across the north, and the Pará state government's environmental agency has been busy working alongside mining companies trying to advance their projects in the region, including G Mining, Hochschild Mining, Ero Copper, and Aura Minerals. TriStar Gold, a TSX-V listed junior focused on developing its flagship gold Castelo de Sonhos project in Pará state, had its Preliminary License (LP) and Environmental Impact Assessment (EIA) approved this year. Nick Appleyard, TriStar Gold's president and CEO, discussed the attractiveness of Pará as a mining jurisdiction because of its geology and the state government's experience working with mining companies: "This makes the regulatory process smoother compared to regions where mining is less familiar. The history of mining in Pará means that the communities understand and support the economic benefits it brings." 

Community engagement has been a critical focus for the company, ensuring the Castelo de Sonhos project has both regulatory and social support moving forward. Discussing the importance of state and community engagement, Appleyard said: "After submitting the EIA, the Pará State Environmental Council (COEMA) reviewed it, conducted a site visit, and held a public hearing or town hall meeting. This meeting allows everyone to have their say. Our recent meeting had about 600 attendees and was very successful, showing strong community and state support." 

Another TSX-V listed gold developer in the state of Pará is Cabral Gold, advancing its pre-feasibility study at the company's Cuiú Cuiú project. Cabral Gold announced drilling results cutting 11 m at 33 g/t of gold at its Machichie NE target and has hired a new VP of exploration, Brian Arkel. The state, which is famous for its iron ore mining, is becoming a gold destination. Alan Carter, CEO of Cabral Gold, mentioned: "Large scale gold mining is relatively new to this part of Brazil, which is surprising as it was the site of the world's largest-ever gold rush in the 1980s, with estimates of over a million people recovering 20-30 million oz of gold in its rivers, all through informal mining." 

Gold mining in the state occurs in remote areas, and infrastructure and access present challenges for players across the board. Despite this, Carter from Cabral Gold is optimistic about the region's development: "The paving of BR-163, a major north-south federal highway, and the installation of a 190-km power line to bring grid power within 20 km of our site, are notable recent improvements in infrastructure." 

Just across the state border in Matto Grosso, Altamira Gold, a TSX-V gold developer, is working on its flagship Cajueiro project, which straddles the border between Pará and Matto Grosso. In 2019, the company filed a 43-101 compliant resource of 700,000 oz gold for it. More recently, drilling efforts from Maria Bonita, a gold- in-soil anomaly, made a historic discovery: one of Brazil's first gold porphyry systems. Discussing this development, Michael Bennett, president and CEO of Altamira Gold, said: "We are now diligently working to determine the extent of the gold mineralization at Maria Bonita and exploring other areas within our 30,000-hectare claim block for similar deposits." 

Junior companies need help attracting long term financial commitments and investments in their projects, regardless of their promise. Access to capital remains an issue, and dilution is a significant concern for junior companies. Altamira Gold has developed a cashflow strategy through small-scale production to mitigate these challenges, as Bennett explained: "With good metallurgy, excellent access, cheap hydro-electric power and the potential for multiple significant discoveries within our 30,000-hectare claim block, we aim to provide substantial value to our shareholders through small-scale production and subsequent exploration funding."

Mining for Brazil’s food security 
Alongside mining, another pillar of Brazilian exports is the agricultural industry. Brazilian agricultural exports continue to surge yearly; agricultural activity grew over 15% between 2022 and 2023, according to the Brazilian Institute for Geography and Statistics. Producers in Russia, Belarus and Canada dominate the global fertilizer market. As this sector continues to grow, the country's reliance on foreign imports of potassium and phosphate, crucial for fertilizer products, becomes an increasing risk, and mining companies are delivering projects to confront this shortfall and secure Brazil's strategic autonomy and food security.

One such example is Potássio do Brasil, which is developing its flagship Autazes project, which seeks to produce 2.2 million t/y of potassium, equivalent to 17% of Brazil's consumption, once completed. Over the past year, Potássio do Brasil has accomplished notable milestones, including approval of the Autazes project’s implementation license. Discussing the importance of securing domestic production for the country, Adriano Espeschit, CEO of Potássio do Brasil, said: "The concentration of potassium production among a few countries poses a potential risk to global supply chains and, in turn, global food security. Our project aims to significantly contribute to Brazil's agricultural sector by reducing dependency on imported potassium and ensuring a stable supply of fertilizers."  Espeschit continued: "Over the next 12 months, our primary focus will be on advancing key construction milestones, including the development of two 930-meter-deep shafts and essential infrastructure such as the mining plant, access roads, and port facilities." 

Morro Verde is an established producer in the fertilizer industry, producing limestone phosphate and magnesium, and is based in Pratápolis. Caíque Souza, Morro Verde's CEO, said: "Our goal for 2024 is to produce 600,000 t of phosphate and limestone, with a target of reaching 1.5 million t/y within a few years."

Souza also commented on the difficulties raising money for capital projects in the mining industry and highlighted the role that private equity is playing in Brazil's mining scene, as Morro Verde recently received substantial investments from Ore Investments, a Brazilian mining-focused investment house. Discussing these challenges, Souza added: "We need a low capital-cost environment to attract investors. Once a resource is discovered, we still require capital to develop it, which is challenging in a high-interest environment."

The Mosaic Company, Brazil's largest fertilizer company that mines phosphate and potash in Brazil and North America, has recently launched a new bioscience division in Brazil, focused on bio nutrition, and is investing heavily in the country's agricultural sector. Nancy Case, vice president of operations and technical services at Mosaic, commented: “The company has made much progress on our blending unit project in Tocantins, a R$ 400 million investment." 

The Mosaic Company's investments via their blending unit in Tocantins and the biosciences division launch point to the company's strong commitment to the country, as well as the belief in its agricultural sector and its future growth trajectory.