CNN Talks highlights the future and challenges of mining in Brazil

The strategic role of critical minerals in global production chains puts the mining sector in the spotlight.

And it is at this moment that CNN Talks, the debate events arm of CNN Brasil, proposed to discuss the "New Era of Mining".

Brazil attracts the attention of investors and large companies in the sector from all over the world. But potential still needs elements in its favor to convert into value.

Development of production chains, technological infrastructure, labor and legal regulation are some of the factors that challenge the country in the evolution of the mining sector.

"A fundamental issue for the development of Brazil and the world. [...] And the world is watching this. And what is Brazil's mission? It is to understand how we are going to do mining, firstly, that is increasingly responsible, secondly, that leaves an increasingly greater social return for the populations that are affected, and, thirdly, and the most special, how are we going to do mining that allows Brazil to grow and be sustainable in the long term", pondered the CEO of CNN Brasil, João Vitor Xavier.

The discussion revolves around, above all, how the country can add value instead of exporting the raw commodity.

"A former Minas Gerais politician, Magalhães Pinto, said that mining only produces one harvest. So, this harvest has to be well used. And Brazil needs to think about how it will help the SpaceX rocket go to space with mining, but how this will leave real money here. It is not possible for Brazil to continue being a country that sends ships and ships of iron ore abroad and does not benefit from it here. So, we need to discuss how Brazilian mining will generate wealth, real prosperity in the long term in our country", points out Xavier.

Thus, the CEO highlights that CNN Brasil's role is to encourage debate so that "we have a truly prosperous country."

In addition to the discussions, the event featured announcements focused on this development of the sector.

At the opening of CNN Talks, Minister of Mines and Energy, Alexandre Silveira, announced a decree to modernize the rules for protecting natural underground cavities existing in Brazil, in an attempt to reduce legal uncertainty in environmental licensing processes involving mining, energy and infrastructure. Silveira said that the decree could unlock 30% to 35% of the mineral sector by updating sensitive technical criteria.

Within the public sector, the creation of a new council to coordinate the national policy on critical and strategic minerals was also discussed.

Reporter of the proposal in the Chamber, deputy Arnaldo Jardim (Cidadania-SP) stated that the federal government is already working on regulating the council, even before the analysis by the Senate is completed.

"I can reveal that the government is working on this regulation. The fact that the project is in the Senate does not mean that it is stopped. The regulation is progressing and is being done", said Jardim.

On the private sector side, the main demand is for objective criteria. President of the board of the AMC (Association of Critical Minerals), Marisa Cesar stated that the proposal still needs to make it clear which minerals will be treated as critical and which types of projects must pass the collegiate's scrutiny.

"Within the policy, it is not defined which minerals are critical, and they will all pass through the council. At the same time, what type of project will we have to be approved by the council?", asked Marisa.

Another central topic discussed was the energy transition and decarbonization of the sector. Experts argued that what holds the sector back are not concrete initiatives, but rather a villainous narrative of the sector in Brazil and around the world.

José Carlos Martins, advisor to Cedro Mineração also argued that, in Brazil, mining carries the risk of not adding value.

"This misunderstanding of mining permeates all sectors in Brazil. And the sector has done little to change that," he said.

Flora Bitancourt, CIO of the World Climate Foundation, sees an unprecedented window of opportunity for mining in the global energy transition agenda.

For her, "the global agenda is calling on the mining sector to act and be part of the green transition". This invitation, however, has prerequisites for it to come to blows.

With a critical look at the sector's role in relation to the environment, panelists revisited the 2015 tragedy at the Fundão dam, in Mariana (MG), and discussed how the sector evolved after the collapse of the waste dam and the commitments for more sustainable mining in the future.

Almost 11 years later, "the challenges still persist and there are many", according to Elaine Costa Lima, prosecutor and coordinator of the Rio Doce Working Group of MPES (Public Ministry of Espírito Santo).

On the part of Samarco, one of the companies responsible for the case, "a recovery process was presented to the public, it was responsible", said CEO Rodrigo Vilela.

Lima reinforced how the public authorities' approach was necessary: "Information needs to be shared. Monitoring and sharing information are essential to prevent it from happening again, or to be prepared. There is no fair reparation if there is no effective social participation."

While, for Vilela, the message that remains "has to be a moral commitment to carry out this reconstruction".

CNN Talks: New Era of Mining brought together authorities, businesspeople, experts and representatives of the mineral sector to discuss the paths of Brazilian mining in a new phase of global competition for critical minerals, energy transition and supply chain security.

Critical minerals could increase the country's GDP by R$243 billion by 2050

Source: CNN