The $42 billion Latin American mining giant, Brazil, has appealed to Australia’s mining industry to recognise the structural reforms being put in place to enhance international investment appeal. Addressing at the second day of the Paydirt 2013 Latin America Down Under resources conference in Sydney, Brazil’s Secretary of Mining, Carlos da Costa, acknowledged that the country – one of the world’s largest iron ore producers – faced four key challenges as it reshaped its mining sector.

Da Costa cited these as internationally increasing the knowledge of Brazil’s mineral profile; optimising through mining the use of the country’s vast mineral wealth; adding more technology into its mineral production chains; and increasing its competitiveness on the global mining stage.

“We are a country that produces around 80 mineral products with an annual production value of US$42 billion. This generated last year mineral exports for Brazil valued at US$34.1 billion and a mineral trade balance of US$25.2 billion” da Costa said.

Da Costa continued to say “However, we wish to boost the level of overseas investment in mining and exploration and have a range of structural actions in progress which potential mining stakeholders from Australia need to be acquainted with. Our Mining Law project will establish a National Council for Mineral Policy, we are proposing changes in the Concession of Mining Rights, establishing a National Mining Agency and evolving a transparent mining royalties policy. The changes are designed to strengthen our minerals exploitation and provide an environment where value adding mining and mineral transformation activities are encouraged.”

Carlos da Costa said while the new regulatory framework would promote a cultural change in Brazil’s mining industry, particularly in terms of access, it would result in the necessary incentives to improve competitiveness and investment by the private sector. The changes would not jeopardise existing agreements, all of which would be protected.