Brazil ranks third in the Americas with regard to its geographical area. It has huge reserves of commodities such as bauxite, kaolin, niobium, iron ore and nickel. Gold, coal and phosphate deposits are also present in Brazil. In terms of mineral exports, iron ore is the most prominent. Brazil leads in the exports of tin, lithium and niobium worldwide. Apart from these, manganese, gold and bauxite exports are also prominent.
Investment in the mining industry is estimated to be 28 billion dollars for the equipment alone. There is a huge demand for iron ore and bauxite deposits. In fact, the price for iron ore has quadrupled. There is much scope for exploring new mines and hence the mining industry is a great investment option.
Iron ore deposits are found in Minas Gerais. Deposits have also been found in the Amazonas state of Brazil. Manganese ore and concentrates were also found in Minas Gerais, Amapa and Mato Grosso. Since there is huge demand for steel, investing in mines having manganese deposits has much scope. Exports in this field offer much potential.
Tin deposits are also present in the Rondonia and Amazon areas. The Pitinga mine in the Amazon has lots of tin deposits. Byproducts such as tantalum, thorium, cryolite, zirconium, columbium and hafnium are also found. These byproducts are also in demand and can offer good results. Bauxite deposits of high quality are found in the Amazon region, and Papagalo plateau also has deposits. Brazil also has concentrates of pyrochlore. Colonbium deposits are present in Goias and Minas Gerais.
Diamond mines along with other semi-precious stones are found in Minas Gerais, Bahia and Goias. Apart from these, other gems are also found throughout Brazil. These include opal, ruby, sapphire, topaz and others. Platinum deposits are also found here. Brazil has great potential in this area. The spread of sedimentary rocks is large. Diamonds with grades of 0.01 to 0.1 carat are found in mines of Brazil. Overall, 1.2% of the total reserves of diamonds are found in Brazil.
Gold deposits are found in Serra Pelada. There are many unexplored regions having possibilities of gold deposits. Hence, investment can be a good option with the rising costs and demand for gold worldwide.
Foreign direct investment is huge in Brazil. The government encourages investment in this field to explore the vast resources present. Also, it plans to establish new industries in this field. Investments in the Amazon region are especially encouraged. It encourages private investment in exploration of oil bases, and development and expansion of phosphate and iron ore deposits.
Investors are attracted due to the macroeconomic policies of the government, huge mineral base and skilled labor. The concessions provided by the government with regards to tax incentives are also fruitful in attracting investors.
Thus, the mining industry is Brazil is a very good investment option. There is a lot of scope for excavating minerals that are in demand from the huge mineral reserves in Brazil. And since investment is encouraged, it is all the more an attractive option for investment.