Raul Jungmann, President of Ibram, warns that bureaucratic obstacles in environmental licensing hinder Brazil’s mining sector. He advocates for streamlined processes to boost investment and believes more resources and digital solutions are needed. The demand for critical minerals is rising due to global instability, and Mr. Jungmann stresses the importance of national policy and R&D funding to enhance Brazil’s role in this market.
Raul Jungmann, the President of the Brazilian Mining Institute (Ibram), has articulated concerns that regulatory hurdles represent a significant barrier to the development of mining and the exploration of vital minerals in Brazil. During a seminar hosted at the Brazilian Development Bank (BNDES) in Rio de Janeiro, he emphasized that excessive bureaucracy in environmental licensing is driving investments away from the nation.
Mr. Jungmann remarked that prolonged waiting periods—ranging from five to seven years—undermine investment potential and often hinder projects from ever materializing. He advocated for a reassessment of the bureaucratic processes that lead to such delays, noting that the average time for securing mining project licenses internationally is significantly shorter than in Brazil.
Highlighting Brazil’s rich resources, which include 14 of the world’s strategic minerals, Mr. Jungmann suggested that projected investments in the mining sector could soar to $68.4 billion between 2025 and 2029 if regulatory approvals could be expedited. He clarified that Ibram is not advocating for shortcuts in the approval process but rather a more practical approach to reduce unnecessary delays.
Furthermore, he pointed out that Ibama, the environmental agency, lacks sufficient personnel within its licensing division and stressed the importance of introducing digital solutions powered by artificial intelligence to enhance operational efficacy. Mr. Jungmann believes that while there have been improvements since his time as the agency’s head, the current demands on Ibama surpass its existing capabilities.
Jungmann also commented on the global surge in demand for critical minerals amid geopolitical instability, asserting that these resources have become integral to national sovereignty. He noted how U.S. political changes will impact Brazil’s export dynamics, predicting that the demand for critical minerals would transition to support different sectors.
The Ibram leader expressed skepticism about the continuation of a previously negotiated agreement that would facilitate the use of strategic minerals for energy transition purposes with the current U.S. administration. However, he anticipates ongoing requirements from the Trump administration for Brazilian minerals, specifically for defense and technological innovation.
Finally, Mr. Jungmann advocated for enhanced funding towards research and development as well as establishing a national policy focused on strategic minerals. He concluded with a stark warning that without significant advancements in knowledge, R&D investment, and streamlined licensing, Brazil risks remaining in a state of colonial dependence.
In summary, Raul Jungmann highlights critical bureaucratic challenges impeding Brazil’s mining sector, contending that streamlined licensing could significantly elevate investment potential. He emphasizes the necessity for enhanced staffing, digitalization within licensing agencies, and a robust national strategy for strategic minerals. Jungmann’s insights underscore the importance of adapting to global market changes and positioning Brazil favorably in the competitive landscape of critical mineral production.
Original Source: valorinternational.globo.com