Engineering and Consultancies
Towards a sustainable industry by design
As a result of recent tragedies, the Brazilian mining ecosystem is rapidly adapting to the stricter environmental protection measures adopted by the Brazilian government and the global mining industry. However, finding the balance between promoting greenfield and brownfield projects and ensuring the highest environmental and social standards for sustainable mining remains a challenge for the mining industry, which seeks to restore the Brazilian publics’ confidence.
The regulatory framework is becoming increasingly complex, and mining companies require partners in the engineering and consulting areas that have a thorough understanding of Brazilian institutions. Lucila Telles, WSP's country manager in Brazil, explained: “Companies are increasingly requesting for our support from the conceptual phase of the project in order to avoid future environmental risks and conflicts with surrounding communities and thus facilitate the permitting process.”
WSP saw growth of 25% to 30% in 2023 due to stricter global standards for tailings management and changes to local and federal environmental regulations to protect the country´s biodiversity.
There has been a noticeable shift following the Mariana disaster, as mining companies now prioritize safety and environmental issues. SRK has collaborated with the Renova Foundation, the entity in charge of the Mariana rehabilitation programs, providing technical studies, advice and support. Thiago Toussaint, managing director at SRK in Brazil, described the strategic shift in approach for engineering companies: “Following the Mariana incident, the mining industry focused on the importance of geotechnical safety. Thus, we decided to concentrate on enhancing our geoenvironmental and geotechnics business unit in Brazil.”
The company has experienced increased demand for services related to geotechnical safety, including dewatered tailings stacking and site-wide water balance. Additionally, engineering firms are seeing significant demand for mine closure planning. SRK, for example, focuses on ‘designing for closure’ to ensure that when the time comes, the mine will be ready. “For Brazil, mine closure is relatively new compared to other mining countries,” said Toussaint. “Mining projects are closer to closure, and challenges are knocking at the door.”
In 2021, the National Mining Agency released a resolution with clear indicators for the requirements for mine closure. This was an essential step forward, providing much needed clarity. However, there are still certain areas of mine closure procedures that must be addressed, including the geochemical characterization for tailings facilities. A more sustainable industry is not just about engineering safer tailings dams, but about looking at all the inputs of the industry to find ways to become greener.
"One of the challenges we face in Brazil is the lack of public information, which limits the ability of junior companies to present viable opportunities."
Bernardo Viana, Partner, GE21 Consultoria Ambiental
Maria de Lourdes Bahia, vice president of mining and metals at AtkinsRéalis, emphasized the industry's interest in minimizing the negative environmental impact of its operations. The company has significant expertise in tailings and filtration projects, completing five filtration plant projects for Vale. At Nexa Resources’ Aripuanã project, AtkinsRéalis implemented a water recovery solution during mineral processing. “In Brazil, we mainly support our clients in reducing their dependence on tailings,” said de Lourdes Bahia. “That is why we are looking for alternative solutions to tailings dams and other technologies for more sustainable projects.”
Insufficient renewable power infrastructure is a challenge for the industry’s ambitious decarbonization goals, and there is a rise in interest from major mines in building renewable power plants. Vinicius Ambrogi, head of marketing and environment at EBP Brasil, said: “In some locations, there is still a lack of proper infrastructure to supply mining facilities with the large amount of energy they need to operate. Engineering companies will continue to play a relevant role in developing technologies to meet the growing demand for clean energy sources in the mining sector.”
Green hydrogen represents a major opportunity for Brazil. According to Standard & Poors Global, the country could potentially export green hydrogen to the US and Europe to produce low-carbon steel. The H2 study, a partnership between the German Society for International Cooperation and Brazil's Ministry of Mines and Energy, demonstrated that as of May 2023, there have been at least 42 green hydrogen production projects in Brazil, involving more than 800 companies and institutions. These green hydrogen projects, and the larger push for more sustainable operations, requires a forward-thinking approach to engineering and consulting.
"The metals market has transitioned towards different commodities required for the energy transition. The need for battery materials is driving the mining business."
Leonardo Pena, Managing Director, Ausenco
Energy transition raw materials
The boom in critical minerals provides a unique opportunity for engineering and consulting companies. For example, more than 80% of the projects Ausenco is currently working on are projects to support the energy transition. Buoyed by demand in this area, Ausenco expects to grow by 30% in 2023. “I see this as the future of Brazil in terms of metals,” said Leonardo Pena, vice president of the company in Brazil. “A few years ago, when speaking about mining in Brazil, it was all about iron ore. Now, projects in different commodities we discussed years ago have become feasible and viable and will support the world in the energy transition and decarbonization.”
AtkinsRéalis, which started work on a project in the lithium valley in Minas Gerais in 2023, has experienced a notable growth in business from critical minerals. The company has developed new technologies for processing these metals. For companies working with critical minerals producers, it is full speed ahead. “As a country, we have advantages in terms of economic and political stability compared to other countries with large lithium deposits, such as Argentina,” said de Lourdes Bahia.
GE21, a mining consultancy that works with various metals, has seen more demand in the green energy transition commodities concentrated in high-value areas. One of the company’s clients, a Canadian junior, has started three exploration projects in Brazil, which the company is supporting with MRMR capabilities. “There has also been a boom in lithium projects, particularly in the pegmatite zone here in Minas Gerais, known as Lithium Valley,” stated Bernardo Viana, a partner at GE21. “Graphite projects are growing too, making up about 50% of our current projects. Phosphate is also significant, as it is strategic for Brazil.”
For exploration companies to take advantage of Brazil’s wealth of mineral resources, the country needs regulatory clarity and systems. Viana explained that a lack of public information in Brazil limits the ability of junior companies to present viable opportunities, and noted that the rules of engagement for juniors are often unclear, making it challenging for them to define targets and attract investment. However, there is still plenty of light ahead. Viana stated: “These challenges also create opportunities for companies like GE21, especially as we witness positive advances in regulations, such as the new resolution by the National Mining Agency to modernize methodologies for reporting Mineral Resources and Mineral Reserves.”
The diversity of the country’s geological environment and the scale of untapped potential provides Brazil with the possibility of a wealth of greenfield projects. The key question is if the mining industry’s growth in production of critical minerals can drive a broader growth in industrialization. Manuel Fernandes, energy and natural resources co-leader for Americas at KPMG, said: “Over the next year, I hope to see a clear industrialization strategy from the Brazilian government, attracting investment to the country for the production of value-added products.”
Image courtesy of BHP