Political turbulence, weak commodity prices and a decrease in the value of the local currency have bought Brazil’s economy to a crisis point. 2015 saw iron prices drop to a five year low of $75 per ton. The Benito Rodriguez dam disaster of November 2015 brought global scrutiny to the country’s mining sector. Both the President and the former President are facing serious allegations of corruption. 

However, investors cannot afford to take Brazil out of their priority list of mining destinations and will be looking for opportunities that the current set of challenges present. The fallout of the dam disaster will instil a renewed vigor in the sector as companies push to demonstrate commitment to corporate social responsibility. A hugely devalued currency and financially stretched companies means that bargains can be discovered and a new mining code is in process. Furthermore, a wealth of new projects and explorations show that Brazil is still a sound destination for long-term investment.