News

30/05/22

Identifying mining projects and business opportunities that are seeking financing, association with investors or any possibility of attracting capital related to mineral research and production is the objective of the 1st Open Call for Projects by Invest Mining.

The document was presented today (5/30) and is signed by representatives of the National Bank for Economic and Social Development (BNDES), the Ministry of Mines and Energy (MME), the Agency for the Development and Innovation of the Brazilian Mineral Sector (ADIMB ), the Brazilian Mining Institute (IBRAM) and the Brazilian Association of Mineral Research and Mining Companies (ABPM). The launch ceremony took place at the BNDES headquarters in Rio de Janeiro (RJ).

The Invest Mining network is focused on promoting the financing of mining activities in Brazil, promoting actions that will result in the improvement of the business environment. And this will attract even more investments and, consequently, provide for the expansion and diversification of mineral production and the increase in the number of mining companies operating in the country.

For the director of Productive and Socio-Environmental Credit at the BNDES, Bruno Aranha, “Invest Mining is an excellent opportunity for us to have a collaborative network. A platform where all mining initiatives of different sizes can have visibility and where it is possible to make connection between the financial sector and the productive sector to create, innovate and present other solutions for financing the mineral sector, which is so fundamental for the development of the country”.

IBRAM has been attentive to this agenda for many years, having actively participated in several relevant movements in this regard. According to the CEO of IBRAM, Raul Jungmann, this public call is an opportunity to bring together the public and private sectors, with the participation of different actors, such as the BNDES, eventual financing agencies and investors, an important factor for the development of the mineral sector Brazilian market, mainly for small and medium-sized companies.

Representatives of BNDES, MME, IBRAM, ADIMB and ABPM. Credit: Disclosure

“I believe that the large corporations in the mineral sector, some of which are very important, which are, without a doubt, global players, have access to sources of financing. However, the vast majority of the sector often has difficulty obtaining credit in a country with the structural problems we have. Invest Mining is very welcome. Here we are taking a very important step to obtain a financing structure for the mineral sector”, emphasizes Jungmann.

The secretary of Geology, Mining and Mineral Transformation at the MME, Pedro Paulo Dias Mesquita, pointed out that the country is in fact embarking on a path of greater appetite for mining financing, which is necessary to boost the sector in the country. “The country’s large mining projects are only viable with investment sharing and this is one more reason why this network has a very important driving role for the expansion of mining in the country”.

Opportunity for small and medium businesses

The Invest Mining Network will maintain an electronic form on its website in which interested companies can register their projects, inserting the required information. The deadline for registration is from June 1st to July 31st, 2022. The facilitation process will take place through approximation between companies and investors or potential partners to be identified in the financial market by the Invest Mining Network.

The president of ADIMB, Marcos André Gonçalves, believes that the big beneficiaries will be small and medium-sized companies. “We have an enormous potential to develop and this public will benefit a lot, I’m sure”, he stated.

“The Brazil we want is one that has credit for the little ones. A country that has ESG in its DNA. That practices healthy governance, that is composed of serious companies, that employ Brazilians, but that have no restriction on capital Because it is from foreign capital that this appetite for risk comes from, which one day we will achieve here. Invest mining is the bridge to that”, evaluates the president of ABPM, Luís Maurício Azevedo.

Investors

The event also had the participation of representatives from XP Investimentos, Daniel Renner, from CFO Ore Investments, Eduardo Cardoso, and from Fronteira Minerals, Felipe Holzhacker Alves.

Renner stated that XP Investimentos is available to mainly read what the market expects and how to format transactions so that investors can join the network and make the development of the sector viable.

For the representative of CFO Ore Investments, formatting a product like this one from Invest Mining is a step towards developing and unlocking the great expansionist potential of Brazilian mining. “For those of us who live in business, it is very important to have this financing network, this project hub, with the filters it is offering”.

“There is money for everything, from the most initial project to large companies. What the investor wants is to associate the risk he has with the return. What we need is quality information; that he can access the risk of that project to place the capital and having a predictable return on investment. The less information, less governance, more participation we will want for our one real or one dollar invested. The opposite also happens. We already invest good amounts of money to have little participation in companies that are well organized , well structured”, emphasizes Felipe Alves, from Fronteira Minerals.

Also participating in the event were the head of the Base and Extractive Industry Department at the BNDES, Flávio Moraes da Mota, the director of geology and Mineral Production at the MME, Frederico Bedran Oliveira, and the coordinator of the Invest Mining Network, Miguel Antônio Cedraz Nery, the Director of Communication at IBRAM, Paulo Henrique Soares and Director of Institutional Relations, Rinaldo César Mancin.