Brazilian Mining Institute Highlights Impact of Bureaucracy on Investments
Raul Jungmann, President of Ibram, argues that bureaucratic delays in environmental licensing are major obstacles to mining investments in Brazil. He emphasizes the need for regulatory reform and technological upgrades to enhance efficiency. Additionally, he stresses the importance of funding R&D and developing a national policy on critical minerals to position Brazil competitively on the global stage.
The President of the Brazilian Mining Institute (Ibram), Raul Jungmann, has asserted that regulatory challenges significantly hinder the development and exploration of critical minerals in Brazil. He cautioned that the excessive bureaucracy prevalent in environmental licensing agencies results in a decline in investments within the country.
During a recent seminar hosted by the Brazilian Development Bank (BNDES) in Rio de Janeiro, Mr. Jungmann stated, “The truth is that waiting 5, 6, 7 years destroys the investment capacity and causes some of them to die before they even begin.” He emphasized the urgent need to reassess the bureaucratic processes involved in licensing.
Mr. Jungmann indicated that, compared to Brazil, the international standard for mining project licensing is considerably swifter. He elaborated that while Brazil could attract considerable investments—projected to reach $68.4 billion between 2025 and 2029—this potential could increase with enhanced efficiency in project approvals.
He clarified, “We don’t want any shortcuts. We’re not asking ‛suppress, just do it, loosen up.’ We never put that on the table. What you can’t do is wait 5, 6, 7 years, that’s just not feasible.”
Highlighting the under-resourced state of the licensing department within Ibama, Mr. Jungmann pointed out the lack of personnel and the need for technological advancements, including the integration of artificial intelligence to optimize processes.
He noted a rising global demand for critical minerals in light of geopolitical instability and asserted that these minerals have acquired significant relevance to national sovereignty.
Mr. Jungmann also discussed the changing dynamics of trade relationships under different U.S. administrations, suggesting that while the Biden administration’s agreements may fall through, the demand for Brazilian minerals would persist, albeit for different sectors like defense and technology under Trump.
Furthermore, he called for substantial investment in research, development, and the establishment of a national policy on strategic minerals to ensure Brazil secures its position amidst global shifts. “Without knowledge about the land, R&D investments, and improved licensing, we will miss this opportunity. We will remain in the situation we were in the past, as a colonized country, a colonial nation,” he concluded.
The Brazilian Mining Institute’s President, Raul Jungmann, has highlighted the pressing issue of excessive regulatory bureaucracy surrounding environmental licensing in Brazil’s mining sector. He asserts that the current delays obstruct investment opportunities and call for a re-evaluation of these processes. Furthermore, he urges investment in research and development to maintain Brazil’s competitive edge in the global market for critical minerals, emphasizing the need for a strategic national policy to leverage Brazil’s resources effectively. In conclusion, to thrive amidst geopolitical transformations and rising global demand, Brazil must address bureaucratic inefficiencies and invest in its mineral potential.
Original Source: valorinternational.globo.com
