Could you update us on SRK Brasil’s progress since 2023?

Since 2023, SRK Brasil has increased its internal capacity in technical and business development. We have brought in key individuals who are experienced and well-known in the mining sector of Brazil for both mining and technical engineering. Consultants that bring strong technical skills, desired values and fits to our culture will certainly add great value and capacity towards achieving our strategic goals for the next two to three years. We have excellent perspectives for 2024. Since January, we have seen a marked increase in requests. Last year, SRK Brasil supported a major mining company in Brazil with their due diligence process. Since then, quite a few due diligences requests came in from various mining companies and group of investors. We are seeing in Brazil a strong movement towards critical minerals. Copper and gold have been solid; lithium, rare earths and nickel are also very active.

One exciting opportunity we are working on is with a copper-gold mining company. Since 2019, SRK has been providing support in the mine closure, geochemistry, and water management topics, resulting in a very positive relationship, while collaborating with our SRK’s colleagues from UK, Canada, and US offices. How has your headcount grown in the past year?

By December last year, we were around 40 people. We have passed 45 and are expecting a 20% increase by December this year. However, we plan to stay under 50 consultants this year to maintain our quality standards. What do you think is driving the surge in due diligence requests in 2024?

The high demand for critical minerals globally is a significant factor. Brazil has a significant potential for critical minerals. Recent studies had shown that the northeast and southeast regions of Brazil are key for mining sector strategies related to energetic transition, decarbonization and industrial technological development. Significant reforms and regulatory improvements have enhanced the business environment, reducing bureaucratic hurdles and attracting more foreign capital.

The increase of investments in the mining sector can also be related to infrastructure developments, such as improved logistics and transportation networks that can potentially lower operational costs and social and economic commitments. The National Mining Agency recently updated legal requirements for mine closure, which is also pushing mining companies towards a more sustainable scenario. While this alone does not justify increased interest in Brazilian mining, supportive government policies and initiatives have instilled confidence among investors fostering a positive climate for the mining sector. Can you give us your perspective on the regions in Brazil with the most significant potential for future growth?

There is significant potential for critical minerals in the northeast and southeast of Brazil. I recently attended a lithium conference where the potential of regions like Minas Gerais for lithium was discussed. This region, along with others in the northeast and north, such as Amazon region, despite environmental challenges, holds untapped reserves. Brazil's relative newness in mining can be advantageous compared to older mining regions, particularly regarding social acceptance, environmental regulations, and public interest. There is also water availability and more sustainable power sources, which are significant assets for mining projects. What are SRK Brasil’s plans for the next year?

In 2025 SRK Brasil celebrates 20 years. We plan to continue growing, aiming to consolidate our team and ensure everyone understands SRK's culture. We do not envisage expanding our business units shortly but invest more in critical disciplines like hydrology, rock mechanics, water management, and mine closure. We focus on building a team capable of supporting mining projects from the conceptual to the feasibility level. We aim to support mining projects throughout their lifecycle, from exploration to mine closure. We will also push forward in key areas like due diligence, certification, and mine closure.

Additionally, this year SRK Consulting is celebrating its fifty years as a group of more than 1,700 employees around the world. Innovation is undoubtedly a core element of our business, which was a key driver in the company’s founding, and our people continue to build on that legacy. Innovation is a priority for us because the projects we undertake with our clients are becoming increasingly complex. SRK Brasil will continue to innovate both with technology and with our approach to tailoring services to meet clients' needs for sustainable solutions.