Ibram President Highlights Need for Mining Licensing Reform in Brazil

Brazilian Mining Institute President Raul Jungmann highlights regulatory challenges and excessive bureaucracy as major barriers to mining development in Brazil. He points out that licensing delays can deter investments and calls for reforms to streamline processes, while also noting Brazil’s significant potential in critical minerals. The shifts in U.S. administration policy may alter the focus of demand for these resources, underscoring the need for enhanced research and development.

The Brazilian Mining Institute (Ibram) President Raul Jungmann has identified regulatory challenges as significant barriers to the advancement of mining and the exploration of critical minerals in Brazil. He expressed concern over excessive bureaucracy at environmental licensing agencies, which can result in decreased investment in the nation. Furthermore, he stated that prolonged processing times, averaging 5 to 7 years, hinder the potential for viable projects, calling for a comprehensive review of such bureaucratic processes.

During a recent seminar hosted by the Brazilian Development Bank (BNDES) in Rio de Janeiro, Mr. Jungmann highlighted that the international average timeline for mining project licensing is substantially shorter compared to Brazil. He underscored Brazil’s strategic resource advantage, possessing 14 out of the key strategic minerals today. Ibram anticipates investments in Brazilian mining to reach $68.4 billion between 2025 and 2029, although projects could attract greater funding with more streamlined approval processes.

Mr. Jungmann emphasized the need for efficiency, relating to the licensing authority Ibama, which he noted suffers from a lack of personnel and technological resources. He advocated for the digitization of the agency to facilitate improvements in licensing capabilities. While he acknowledged advances since his tenure at Ibama in the mid-1990s, he asserted that the current demand significantly outstrips the agency’s existing capacity.

The mining institute president pointed out a global surge in the importance of critical minerals, fueled by geopolitical uncertainties, such as conflicts and changes in leadership. He articulated the idea that this geopolitical context has transformed critical minerals into matters of national sovereignty. Furthermore, he commented on the implications of changing U.S. administration policies affecting Brazilian exports.

While a strategic minerals agreement established under the Biden administration may not continue, the demand for Brazilian minerals from the new administration under Donald Trump is anticipated to shift focus to sectors like national defense and technology. Mr. Jungmann also highlighted the necessity for investment in research and development, stressing that without such initiatives, Brazil risks remaining in a subservient economic position.

In summary, Raul Jungmann of Ibram stresses the pressing need for reforms in Brazil’s environmental licensing processes, which are currently hampering investment opportunities in the mining sector. He underlines Brazil’s competitive advantage in possessing essential strategic minerals, yet emphasizes that improving bureaucratic efficiency and investing in research and development are critical to capitalize on these resources. The shifting dynamics of global demand for critical minerals further underscore the importance of timely project approvals to secure Brazil’s position in future markets.

Original Source: valorinternational.globo.com