Could you give us some updates and recent news from GE21 Consultoria Mineral?

Over the past year, we have been continuously growing and expanding our operations. We have opened new exploration projects and are setting up a new office in southern Brazil in collaboration with several service providers. We will begin assisting with new projects there very soon. We have been very busy identifying opportunities for expansion outside of Brazil. We have actively promoted our industry workshops to bring clients together to discuss specific issues and subjects. These events encourage networking and provide a cost-effective way to engage with multiple clients. We gather participants in Belo Horizonte to foster collaboration and exchange.

Last year, we saw significant project growth, particularly with rare earth elements. We have developed expertise in geology and mining, as well as processing. We are investing in technology and expanding our ESG services to sectors beyond mining, including government, agribusiness, logistics, and smart cities. Our ESG focus is on understanding the spatial relationships of ESG programs with communities, supply chains, and infrastructure. We analyze geospatial data using GIS technologies.

What are the current trends in Brazil's lithium market?

The lithium market has been volatile, with companies losing about 50% of their stock value and lithium prices dropping. Despite this, major players are still investing in lithium projects in Brazil, indicating that these fluctuations might be market adjustments. In the longer term, prices will continue to rise, but the speed of the electrification transition may be overestimated. For example, Brazil can only support widespread electric car adoption by improving its electricity production and distribution. 

What are your thoughts on the global energy transition and its impact on emerging markets?

Due to infrastructure limitations, emerging markets like Brazil face significant challenges in adopting rapid energy transitions. It is crucial to recognize the different paces at which developed and developing countries can transition. Rare earths will be critical to this transition and currently, the dominance of China in the rare earth market is absolute. Establishing mining and processing facilities in countries like Brazil is a lengthy process, taking about 9-10 years, compared to China's well-established infrastructure. Brazil has a favorable environment for rare earth projects, particularly in ionic clays. The government should support the development of the private market step-by-step. If private companies can develop projects independently, with minimal government interference, Brazil can become a significant player in the rare earth market in the next few years.

What is GE21 Consultoria Mineral’s international expansion strategy?

We are establishing a strong presence in Argentina. We also have a representative in Malaga, Spain, to leverage its ESG and GIS technology hub. Our strategy involves collaborating with local governments and agencies to attract investments and develop local systems. Argentina presents a good business opportunity due to the new government's focus on mining investment. We anticipate a boom in Argentina for at least the next three years and are eager to start our business there. We are primarily interested in copper, gold, and critical minerals like lithium. Argentina offers significant lithium pegmatites and rare earth elements, which are different from the resources we explore in Brazil. Canadian and Australian companies are increasingly investing in Argentina. They are reallocating their investments within South America, reducing investment in Brazil and Peru this year.

Can you discuss GE21 Consultoria Mineral’s approach to workforce development?

We have a low turnover, with only two geologists and engineers leaving in the last two years. Nevertheless, Brazil's labour market is tight, especially for highly qualified labour. GE21 Consultoria Mineral is a hub for skill development due to our diverse projects. With 54 projects ongoing, our team gains broad exposure. We have dedicated resources and time to fostering talent from the most junior levels of our company, including by providing part-time educational opportunities to develop our junior staff. 

What are your growth milestones for the next 12 months?

Our focus is on improving report quality, developing our young team, and hiring senior staff. We aim for 15-20% annual growth, invest in team education, and plan to have 20 staff in Argentina by year-end. Our competitive costs and cultural similarities give us an edge over competitors from the US, Australia, and Canada.