Can you provide an update on your activities over the past year?

During the past year, Hidrogeo Engenharia e Gestão de Projetos has worked extensively on rare earth element greenfield projects, and brownfield projects for phosphate and niobium. We assist mining companies in managing their waste and environmental footprints across the sector. There is a noticeable trend in mining projects that are increasingly focused on reusing their tailings waste and ensuring environmentally sound disposal methods. This is beneficial for the environment, companies, and society at large. We observe this tendency more strongly than ever. We have projects in Minas Gerais, Bahia, and Pará. Specific areas include northern Minas Gerais, central Bahia, and southern Pará near Carajás. The northeast, including Bahia, is seeing increased mining activity. Bahia has seen its mining projects increase significantly over the past 10 years. Brazil's geological makeup, consisting of ancient terrains exposed to weathering over long periods, provides great potential for rare earth projects. This long-term exposure makes Brazil's terrains particularly suitable for rare earth mining. For instance, we see numerous rare earth projects in Minas Gerais, Goiás, and Bahia. These geological conditions mean the deposits are often found in weathered soil, which is easier to mine without the need for explosives.

What is the outlook for lithium mining in Brazil?

The demand for lithium is rapidly increasing, driven by the electrification of supply chains and vehicles. By 2028, the demand for lithium is expected to outpace current supply, potentially leading to skyrocketing prices. Several lithium projects are emerging in Brazil, particularly in the north of Minas Gerais. An example is Sigma Lithium, which recently started operations and for whom we conducted some acid rock assessments five years ago. Lithium deposits here are found in fresh rock, requiring different mining methods compared to rare earth elements.

What are the biggest challenges your clients face with environmental management?

The most significant challenge among our clientele is managing the leaching of salts from rare earth mining operations, which can contaminate freshwater sources. This is incredibly challenging in Brazil due to heavy seasonal rainfall, which makes it difficult to contain the water within mining sites. Desalinization is expensive, and we must use chemical characterization and treatments to make the materials inert and prevent salt leaching. There is no one-size-fits-all solution and it requires significant investment in studies and technology.

What is the current government’s approach to environmental regulation and enforcement?

While the laws themselves have not changed, enforcement has increased. The government is now paying more attention to the mining sector, ensuring that environmental impact studies are thorough, and compliance is strict. Additionally, the norm for waste classification is changing. Previously, waste was classified as hazardous, non-hazardous, or inert. The new regulation simplifies this to hazardous or non-hazardous based on chemical concentration. This change in classifications could lead to more mining waste being classified as hazardous, posing new challenges for the industry.

How are companies in Brazil managing and reusing their waste?

Due to the difficulty in obtaining licenses for tailings dams after incidents like those at Brumadinho and Mariana, companies are exploring alternative methods. These include drying tailings, reusing them, or returning soil to open pits. This trend towards minimizing environmental impact is positive but challenging, requiring new technologies and economic considerations. Brazilian mining companies often look to Australia and Canada for examples. These countries are ahead in designing for minimal impact and planning for mine closure. They have government-supported research and hold regular workshops and conferences, such as those in Vancouver, from which Brazilian companies can learn.

What are your plans and priorities for the next year?

We are focused on expansion, particularly in water and effluent management. Our Aquatec platform, which helps manage environmental data, is a crucial growth area. We aim to enhance this platform and provide more consulting services based on the data it generates. We also see the reuse of tailings as a growing field, requiring investment in mineral technology to assess potential uses and economic viability based on the region's characteristics.