Can you provide an overview of recent developments at BNDES?

The BNDES plays a central role in implementing public policy in Brazil. Recently, the Brazilian government introduced the 'New Industry Brazil' policy, which has a significant financial component of R$300 billion for supporting the industries of the future. Of this amount, BNDES is responsible for managing R$250 billion. This policy includes six missions designed to grow and develop Brazilian industry, with one mission focusing on green industry, the energy transition, and sustainable cities. This mission specifically impacts the mining sector by promoting the production and diversification of critical and strategic minerals essential for the energy transition and global food security.

BNDES has launched a new fund to support critical and strategic minerals, particularly aimed at small and medium-sized enterprises in the mining sector. This fund was announced in May 2024 and is focused on financing projects related to mineral research, feasibility studies, and mine development. The fund targets minerals critical for energy transition and decarbonization, including lithium, graphite, rare earth elements, nickel, copper, platinum-group metals and manganese, as well as fertilizers like phosphate and potassium. BNDES and Vale, both investing R$250 million each, will be anchor investors of the fund. The goal is to raise an additional R$500 million from other market investors, reaching a total of R$1 billion. Currently, 12 investment proposals have been received, and a new fund manager is expected to be announced in early October, with the fund operational by early 2025.

The bank is also collaborating with the Brazilian Stock Exchange and other entities to explore new financial instruments and investment opportunities for the mining sector. This includes engaging with various stakeholders to develop a more active capital market for mining projects and expand financing options for both domestic and international investors. How does BNDES view the broader role of the mining sector in Brazil's economy?

BNDES considers the mining sector extremely important for the Brazilian economy and the development of various other industrial sectors in Brazil and globally. Brazil's extensive mineral resources and large domestic market position it as a significant potential global supplier of both traditional and critical minerals. BNDES aims to support sustainable mining projects and diversify the production of these minerals to enhance Brazil's role in international markets, particularly in the context of energy transition and climate change mitigation. What challenges do companies face in financing mining projects, and how can BNDES help?

Companies, especially those at an early stage or without a strong operational track record, face challenges in financing mining projects because traditional financing requires proof of operational performance and guarantees. For these early-stage projects, venture capital can be more suitable. BNDES is working to address this challenge with its new fund for strategic minerals, which focuses on small and medium enterprises and startups. This fund is designed to bridge the financing gap for early-stage mineral projects, covering areas like mineral research and mine development. What is BNDES' perspective on Brazil's energy matrix and its implications for the mining sector?

Brazil's energy matrix is highly advantageous for the mining sector because about 90% of the country's energy comes from clean and renewable sources. This low-carbon energy profile supports the development of mining projects with reduced environmental impact. Additionally, Brazil's high socio-environmental standards for mining projects, combined with a skilled workforce and a favorable business environment, further enhance its attractiveness for investments. The country's stable geopolitical position also contributes to its appeal as a mining investment destination. What are BNDES' goals and objectives for the coming year?

BNDES aims to triple its size in the coming years and significantly increase its support for projects across various sectors, with a focus on mining. The bank has set a goal to support more projects and allocate more resources, particularly in areas related to energy transition, decarbonization, and food security. For the first half of 2024, BNDES reported an 83% increase in approvals compared to the previous year, with a 157% growth in industrial projects. The bank is also enthusiastic about the Strategic Minerals Fund, which it believes will help identify high-quality, sustainable projects and support the diversification of Brazilian mineral production.