Brazil Mining Sector To See $350B Investment Over 20 Years.
projected local consumption and exports of mineral-based products would likely increase three-fold over the period.
Brazil Mining Sector To See $350B Investment Over 20 Years.
BRASILIA (Dow Jones)--Brazil's mining sector and related infrastructure will receive up to $350 billion in investment over the coming 20 years, expanding access to yet untapped mineral resources, the country's Mines and Energy Ministry said Tuesday.
In a report on its 20-year mining plan, the ministry projected local consumption and exports of mineral-based products would likely increase three-fold over the period.
In the next five years, the government estimated up to $65 billion would be invested in the sector, with more than two-thirds of that amount coming from private industry sources.
Under projections outlined in the report, annual iron ore production is seen rising to 1 billion metric tonnes through 2030 from around 400 million currently. Bauxite production is seen rising to 79 million tonnes from around 30 million currently, while aluminum output is seen rising to 3.2 million tonnes from about 1.8 million tonnes.
In addition to those products, the government also projected significant increases in output of minerals such as nickel and copper, each of which it projected would rise more than five fold.
According to the report, the government hopes to promote increased access and discovery of new mineral deposits to supply strategic interests, such as energy production.
Speaking after the release of the document Tuesday, Mines and Energy Minister Edison Lobao said the government was particularly interested in developing the country's uranium reserves, which he estimated at 1.3 million tonnes and a value of approximately $100 billion.
Despite acknowledging the need for increased private investment in the mining sector, the report release Tuesday also confirmed the government's intention to reform investment rules in mining, which some analysts have suggested may limit private sector access and incentives for developing local mineral wealth.
-By Gerald Jeffris, Dow Jones Newswires; 5561-3335-0832; gerald.jeffris@dowjones.com |
