Brazil mining sector to benefit from war in Europe – minister

Brazil’s mining sector can expect rising international investments because of war in Europe and the energy transition, according to a government official.

"Due to the war between Russia and Ukraine, there is a reallocation of the investment portfolio, leaving Eastern Europe, Asia and now in search of a safe haven," mines and energyminister Adolfo Sachsida told an event organized by mining association Ibram.

Apart from Brazil's distance from conflict zones, the presence of minerals like nickel and copper, key for the development of a low-carbon economy, is another favorable aspect, Sachsida added.

Over the years, the investment influx will likely lead to a doubling of the sector’s GDP share, currently at 2.4%.

Miners are planning to invest US$40.4bn by 2026, according to Ibram’s most recent projections. Of this planned total, US$18.8bn are already being deployed.

Mining titan Vale is evaluating the sale of a 10%-15% stake of its base metal units, covering its nickel and copper operations, a source close to the deal, requesting anonymity, told BNamericas, adding that international investment funds and sovereign wealth funds are interested. The unit is valued at US$25bn.