Global General

Brazilian mining to attract $350b in 20 yrs

(Xinhua)
Updated: 2011-02-09 09:40

BRASILIA - Brazilian Minister of Mines and Energy Edison Lobao launched on Tuesday the National Mining Plan 2030, with expected investments of $350 billion to be applied in research, searching, mineral processing, infrastructure and logistics.

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According to the minister, this is the fourth mining plan of the South American country, but the first one to establish guidelines for 20 years ahead.

The document is based on three principles, which are public governance to promote mining for national interest, environmental sustainability and investment in knowledge and technology development.

The Brazilian government expects the planned investments, mostly from the private sector, will allow the mining sector to grow five times in two decades, and the production of iron ore, steel and cement, as well as employment generation, to triple in the period.

Lobao said that in 2010 the sector's turnover amounted to 157 billion dollars, which accounted for 4 percent of Brazil's GDP (Gross Domestic Product).

In a speech to present the plan, the minister said that Brazil wants to increase the production of uranium and implement a new regulatory framework for mining.

The new regulatory framework will promote a tax reform for mineral exploitation, change in the payment of royalties and regulate for foreign participation in the sector.

New bodies, such as the National Council for Mining Policy and a regulatory agency, should also be created.

According to the minister, the exploitation of uranium located in Brazil's subsoil, whose reserves are estimated at 1.3 million tons, may yield about $100 billion.