Brazil mining industry advance talks over mechanisms to finance early-stage projects

Stakeholders in Brazil’s mining sector are advancing with talks to create local capital market mechanisms to finance projects in the early stages.

They held a meeting to discuss actions to facilitate stock market listings for more Brazilian mining firms.

Participants included representatives from the country's agency for industrial development (ABDI), the Brazilian mineral exploration and mining association (ABPM), federal development bank BNDES, the mines and energy ministry, the mining regulator (ANM), local stock exchange operator B3, the country's mining association (Ibram) said in a press release.

During the meeting, BNDES mining specialist Pedro Dias, said mineral exploration should be financed via B3’s stock exchange.

Most early-stage projects are carried out by junior companies, which obtain funds from the Canadian and Australian stock exchanges.

Dias also called for the creation of special bonds to finance mining projects, which already exist in the agriculture and real estate sectors.

The meeting was organized by the Invest Mining network, which was created by public and private sector players to improve the business environment and promote sustainability, governance and social responsibility.

According to Invest Mining, there are 33 early-stage projects in the Brazilian mining industry that require financing worth around 1.80bn reais (US$352mn).