Chinese companies are once again focusing on Brazil’s mining sector, as shown by two significant deals that highlight their growing interest in the country’s mineral resources.
In late November, Baiyin Nonferrous Group of China agreed to acquire Mineração Vale Verde, a Brazilian mining company, from Appian Capital Advisory in a deal worth $420 million. This acquisition, which includes the Serrote copper and gold mine in Alagoas state, is awaiting approval from Brazil’s antitrust regulator, CADE, and the Chinese government. The transaction is expected to close in early 2025.
Meanwhile, Peruvian mining company Minsur, through its subsidiary Minera Latinoamericana, also reached a deal in November to sell Mineração Taboca, a Brazilian mining firm, to China’s CNMC Trade Company Limited for $340 million. Mineração Taboca operates the Pitinga tin, niobium and tantalum mine in Amazonas state and the Pirapora smelter in São Paulo.
These transactions underscore China’s continued focus on Brazil as a strategic partner in the global mining industry. The two countries have enjoyed a strengthening relationship, with Chinese President Xi Jinping meeting with Brazilian President Luiz Inácio Lula da Silva at the G20 summit in Rio de Janeiro last month to discuss cooperation and bilateral agreements.
However, despite the political ties between the two leaders, experts suggest these deals may not signal a broader wave of Chinese investment in the Brazilian mining sector. José Carlos Martins, managing partner at Neelix Consulting Mining & Metals and former executive at Vale, noted that while the political connection helps facilitate negotiations, these deals appear to be isolated transactions rather than part of a larger trend. He added that no other advanced negotiations are currently known between Chinese investors and Brazilian mining companies.
Before these recent deals, major Chinese stakeholders in Brazil’s mining sector included China Molybdenum Co. (CMOC) and Sul Americana de Metais (SAM), a subsidiary of Honbridge Holdings. CMOC owns a niobium mine in Catalão, Goiás, while SAM controls the Block 8 iron ore project in Minas Gerais.
Martins also pointed out that, despite these isolated deals, China’s influence in the global mining sector could lead to more investments in the future, particularly in lithium. As China dominates the entire lithium supply chain, from production to battery manufacturing, Brazil could become a key player in China’s lithium strategy in the coming years.
China has long been a significant player in Brazil’s mining industry, purchasing about 70% of Brazil’s iron ore, the country’s primary mineral export. Additionally, China is the largest buyer of niobium, copper and manganese from Brazil.
The broader geopolitical landscape, particularly the rivalry between the U.S. and China, is also influencing investments in Brazil’s mining sector. In late November, the U.S. demonstrated its interest in lithium mining by supporting a new initiative from Canadian-listed Lithium Ionic Corp. The firm received a non-binding letter of interest from the Export-Import Bank of the United States (EXIM) for up to $266 million in debt financing. This move highlights the U.S.’s desire to secure access to critical minerals, such as lithium, which is essential for electric vehicle batteries and other high-tech applications.
As the global race for essential minerals intensifies, both China and the U.S. are looking to secure their position in Brazil, which remains a key player in the global mining industry.
