Monday, May 27, 2024
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China to invest $3.5B in Brazil’s mining industry

BRAZIL / CHINA, (TV BRICS) – Brazil and China are deepening their relations. According to the data, Beijing held a record share of Brazilian agribusiness exports in 2023.

Not only grain exports should increase, but also trade between the two countries in the mining sector. Chinese companies are expected to invest at least $3.5 billion in the northern regions of Minas Gerais and the southern part of Bahia state alone. The projects are now at the licensing stage.

From 2007 to 2022, the Chinese invested $4.4 billion in the mining sector. According to Gustavo Biscassi, director of the Brazil-China Business Council (CEBC), this figure represented 6.2 percent of China’s total investment during this period.

The Chinese company will invest $610 million to build three plants in Bahia state, which will also include a lithium and iron phosphate processing plant for the international market. In addition to iron ore, the main components of steel, nickel and copper are in high demand.

“These are two critical metals for various technologies supporting the transition to a low-carbon economy. Nickel is increasingly being used in high-performance batteries, while wind turbines and solar panels, which are needed to decarbonise electricity generation, require significant amounts of copper,” explained Biscassi.

The deepening of trade relations between states marks a new stage for countries in the global South in their quest for sovereignty and autonomy.

Source: Toda Palavra, a partner of TV BRICS



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