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Brazil and UAE sign minerals exploration deal

UAE Brazil minerals Alexandre Silveira Aloisio Mauricio/Fotoarena/Sipa US
Brazil's minister of mines, Alexandre Silveira: the deal with the UAE is 'a strategic opportunity to strengthen Brazil’s position in the global energy transition'
  • Hunt for ‘strategic’ minerals
  • Spending on research, extraction
  • Strategic opportunity, says minister

The UAE and Brazil have signed an agreement potentially worth billions of dollars to invest in the search for minerals that are essential to the green energy transition. 

The memorandum of understanding aims to promote exploration for and development of “strategic” minerals, in a partnership that could reach R$15 billion ($2.45 billion) in investments, Brazil’s ministry of mines and energy, Alexandre Silveira, said.

Brazil holds the third largest rare earth reserves in the world, estimated at 21 million tonnes, primarily located in Minas Gerais and Goiás states. 

It also has large deposits of lithium, cobalt, nickel and copper, all in high demand for electric vehicles, advanced battery systems, renewable energy and data centres for artificial intelligence.

The money invested in the partnership will be spent on mineral research, exploration, extraction, processing, commercialisation, technology transfer and workforce training.

“This partnership represents a strategic opportunity to strengthen Brazil’s position in the global energy transition and sustainable mining scenario,” Silveira said. 

The minerals agreement is another step in the growing trade relationship between the UAE and Brazil. 

The UAE is Brazil’s second-largest trade partner in the Middle East, with bilateral non-oil trade exceeding $2.64 billion in the first six months of 2024.

The emirates are expected to finalise a trade deal with the South American Mercosur bloc this year. The Mercosur bloc includes Argentina, Brazil, Paraguay, Uruguay, and Bolivia, which joined in July, as full members and Chile, Ecuador and Peru among the associate members.