News

08/01/25

A credit line was created by BNDES and FINEP. The amount is part of the investment portfolio outlined in the new industrial policy.

The Brazilian Mining Institute (IBRAM) views positively the initiative by the National Bank for Economic and Social Development (BNDES) and the Funding Authority for Studies and Projects (FINEP), which will allocate R$ 5 billion to develop businesses focused on transforming strategic minerals, emphasizing energy transition and decarbonization. This measure directly addresses one of IBRAM’s requests to these institutions: the creation of more credit lines for Brazil’s mining industry.

According to IBRAM’s CEO, Raul Jungmann, the mineral sector has faced difficulties in accessing credit in the country. “According to FEBRABAN (the Brazilian Federation of Banks), the financial sector allocates only 0.9% of the R$ 2.1 trillion made available to the private sector for mining. However, mining is one of Brazil’s most important economic sectors, accounting for over 30% of the trade balance surplus, attracting billions in investments, and generating significant tax revenues,” Jungmann highlighted.

The public call for business plans will be launched this January, with project selections to be announced in June. The initiative is expected to mobilize investments in the production of essential components such as battery cells, photovoltaic cells, and permanent magnets. The support will cover everything from industrial plants to the necessary research and studies to enable new production capacities.

This BNDES and FINEP action aims to add value to Brazil’s mining sector, leveraging the country’s significant potential in strategic minerals for energy transition and industrial decarbonization. With R$ 259 billion from BNDES, the plan involves a total of R$ 506.71 billion for “neoindustrialization” projects, which also include contributions from FINEP, BNB, Banco do Brasil, BASA, and Caixa. The budget for this new call is part of the investment portfolio of the New Industry Brazil initiative. BNDES also has approximately R$ 8 billion reserved for investments in company equity, part of which originated from a partnership with mining giant Vale.