Brazil’s Mato Grosso state to close its mining exploration company

Mato Grosso will close its mining exploration company Metamat, representing a step back for mining sector diversification in the Brazilian state.

The state government attributed the decision to budget restrictions and said that once Metamat’s operations are closed, its responsibilities will be assumed by the state’s department for economic development.

“We have to be careful with public expenses and always seek to improve efficiency. In Mato Grosso, we didn't increase taxes, in fact we reduced them,” said state governor Mauro Mendes in a statement.

Metamat was created in the 1970s with the aim of helping Mato Grosso, an agricultural powerhouse, to diversify its economy through the mining sector.

Mining in the state is currently concentrated in projects involving gold, limestone, manganese, tin, diamonds, and zinc.

With the closure of Metamat, Bahia becomes the only state with its own exploration company, the CBPM.