U.S. and Norway announce new contributions to Amazon Fund

Fund has received over R$4.2bn in donations since its creation in 2008

11/18/2024

The United States and Norway announced two new contributions to the Amazon Fund on Sunday (17). The U.S. pledged $50 million, while Norway committed an additional $60 million. The U.S. announcement was made by President Joe Biden during his visit to Manaus, Amazonas. Mr. Biden said he is leaving a “strong legacy” for President-elect Donald Trump, who will take office on January 20, 2025.

The Amazon Fund has received over R$4.2 billion in internalized donations since its creation in 2008. Tereza Campello, socio-environmental director at the Brazilian Development Bank (BNDES), said R$882 million in projects have already been approved this year.

With the new pledge, U.S. contributions to the Amazon Fund will total $100 million. However, the donation announced by Mr. Biden is contingent on approval from the Republican-controlled U.S. Congress. “The fight against climate change has been the cause of my presidency. There’s no need to choose between the economy and the environment—we can do both,” he said.

“I’m leaving the presidency in January and will hand over a strong foundation to my successor, should they choose to continue this path. Some may deny or delay the clean energy revolution underway in the U.S., but no one can reverse it,” Mr. Biden added.

Norway, Brazil’s primary partner in the Amazon Fund, announced a new $60 million contribution to the initiative. Norwegian Prime Minister Jonas Gahr Støre made the announcement as recognition of Brazil’s 31% reduction in deforestation in 2023.

The announcement was made during the Global Citizen Now Conference, held at the Getulio Vargas Foundation (FGV) in Rio de Janeiro. Mr. Støre is in Brazil for the G20 Leaders’ Summit that starts this Monday (18).

Mr. Støre said the donation reaffirms the longstanding partnership between Norway and Brazil on climate and rainforest preservation. “Brazil’s success in reducing deforestation is a clear demonstration of the Lula administration’s ambition and determination. It shows how targeted measures can deliver significant results for the climate and nature,” he said in a statement released by the Norwegian embassy in Brasília.

Norwegian Climate and Environment Minister Tore O. Sandvik underscored the importance of the partnership: “Preserving the rainforest is one of the most important investments we make. Since Lula resumed the presidency in January, deforestation has dropped significantly, proving that Brazil is a global leader and driving force in protecting tropical forests.”

(With Folhapress)

*By Lucianne Carneiro, Paula Martini — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/
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Shipping soybeans to China more costly for Brazil

An ANEC survey shows that Brazilian freight costs for exporting oilseeds to China exceed those of Argentina and the U.S.

11/14/2024

Brazil faces significantly higher costs to ship soybeans to China compared to competitors like the United States and Argentina. According to data from the National Association of Grain Exporters (ANEC) from March this year, the freight cost for soybeans from Sorriso (Mato Grosso) to China reaches $124 per tonne when using trucks over the 2,000-kilometer stretch from Mato Grosso to the Port of Santos.

The cost of mixed truck and rail transportation drops to $111 per tonne, while using a combination of barge and truck costs $103 per tonne. In contrast, the March cost for shipping soybeans from Illinois to China was $75.50 per tonne.

Argentine exporters moving soybeans from Córdoba to the port of Rosario pay around $94 per tonne by truck, with rail transport reducing the cost further to $79 per tonne.

“In the U.S., production travels half the distance to reach ports compared to Brazil, and better road maintenance reduces vehicle costs. A greater reliance on railroads and waterways also significantly lowers freight expenses,” said Sérgio Mendes, ANEC’s executive director.

Thiago Péra, coordinator at EsalqLog, notes that just 16% of U.S. agricultural transport relied on trucks last year, while waterways accounted for 53% and railways 31%. In Brazil, however, road transport dominates at 54%, while railways account for 33% and waterways just 12%.

Mr. Mendes also highlights that Argentina focuses on crushing soybeans before exporting, with processing facilities located within a 250-kilometer radius of the ports, further reducing logistics costs.

Seasonal demand also impacts Brazilian freight costs due to limited storage capacity, which “causes a spike in road freight prices during peak harvests of soybeans and corn,” says Mr. Mendes.

According to ANEC, the U.S. has a storage capacity equal to 131% of its grain production, whereas Brazil’s capacity is estimated at only 60% of annual harvests.

Executives and researchers agree that improving Brazil’s competitiveness hinges on establishing legal frameworks that attract private investment alongside state-driven infrastructure programs. Streamlining bureaucratic hurdles for licensing railways and other routes is another widely recognized need.

*By Fernanda Pressinott, Globo Rural — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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Man dies in explosion attempting to enter Brazil’s Supreme Court

The Institutional Security Cabinet of the Presidency ordered a security sweep and reinforced measures at the Planalto Palace

11/14/2024

A man died and a vehicle was set on fire following explosions at Brasília’s Three Powers Plaza early Wednesday evening. Authorities sealed off the area, and the Federal Police have launched an investigation.

Francisco Wanderley Luiz, originally from Rio do Sul (Santa Catarina), was identified by Planalto Palace officials as the vehicle owner. Celina Leão, acting governor of the Federal District, reported that preliminary findings suggest Mr. Luiz approached the Supreme Court after the car explosion and, unable to gain entry, may have taken his own life using another explosive. Another line of the investigation considers whether the detonation happened as he attempted to throw the device.

The Federal District government noted that it is too early to determine whether Mr. Luiz acted as a “lone wolf,” as investigations continue. In 2020, Mr. Luiz ran for city council under the Liberal Party (PL). Records indicate he was present at the Supreme Court’s plenary session on August 24.

At around 7:30 p.m., local time, during the explosions, some Supreme Court justices were still in the building. President Lula was not at the Planalto Palace, which is nearby, but at the Alvorada Palace, the official presidential residence, roughly four kilometers away. The Lower House session was suspended in response to the incident.

Following the event, Supreme Court’s Chief Justice Luís Roberto Barroso called President Lula. Several justices, including Alexandre de Moraes, Gilmar Mendes, and Cristiano Zanin, met with the president, along with the Federal Police Director-General Andrei Rodrigues.

Amid suspicions that additional explosive devices might be scattered in the area, the Institutional Security Cabinet of the Presidency ordered a sweep and strengthened security at Planalto Palace and the Supreme Court.

*By Fabio Murakawa, Mariana Assis, Isadora Peron, Raphael Di Cunto, Marcelo Ribeiro — Brasília

Source: Valor International

https://valorinternational.globo.com/
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ArcelorMittal invests R$2bn in steel factory expansion in Brazil

Steel galvanizing and annealing plant capacity increased to 2.2 million from 1.6 million tonnes

11/14/2024

With an investment of R$2 billion, ArcelorMittal inaugurated the expansion of its Vega facility in São Francisco do Sul, Santa Catarina, on Wednesday (12). The new unit will produce Magnelis, a corrosion-resistant material developed by the company, marking the first time this product will be manufactured outside of Europe. Magnelis is ideal for applications requiring high durability and low maintenance, such as solar panel structures and vineyard posts.

The new continuous galvanizing and annealing line has increased the plant’s annual production capacity from 1.6 million tonnes to 2.2 million tonnes. Jorge Adelino, vice president of operations for ArcelorMittal Flat Steel in Latin America, noted that this is the largest private sector investment in Santa Catarina.

ArcelorMittal produces 42% of Brazil’s flat and long steel, and its Brazilian operations account for 25% of the group’s EBITDA. Opened in 2003, the expanded facility will broaden its product range to support the automotive market, with new galvanized steel lines and high-strength steel coils.

Lakshmi Mittal, ArcelorMittal’s chairman and CEO, visited Brazil for the first time in eight years to inaugurate the unit. He highlighted that these investments were made despite challenges from high steel import volumes. “New investments in Brazil proceeded despite unfair competition from imported products that hinder opportunities for growth,” he said.

The group’s strategic plan allocates R$25 billion in Brazil from 2022 to 2028, covering expansion, modernization, acquisitions, and renewable energy initiatives. During a meeting with President Lula in Brasília on Tuesday, Mr. Mittal noted the federal government’s openness to dialogue. “The government understands and values our industry’s role in the country’s economic growth,” he added. President Lula shared photos of the meeting on social media, stating, “There is now confidence in foreign investment and industrial growth in Brazil.”

Eduardo Zanotti, ArcelorMittal’s vice president of flat steel sales, expressed concern over import volumes. “Despite the government’s tariff-quota measure, imports have not decreased. Predatory imports are troubling the industry,” he said. Mr. Zanotti also commented on the possible impact of policies under President-elect Donald Trump in the United States, expecting that stricter measures might redirect Chinese steel to other countries. “The Brazilian government understands the need to monitor imports. Many countries are ramping up protections for their local industries,” he added. While the primary focus of the expansion is on the domestic market, exports remain a possibility.

The reporter’s travel costs were covered by ArcelorMittal.

By Kariny Leal — São Francisco do Sul

Source: Valor International

https://valorinternational.globo.com/
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How AI will shape the future of companies and individuals

The second day of the Web Summit in Lisbon featured a debate on the role of artificial intelligence in society

11/13/2024

The opportunities, challenges, and especially the risks of artificial intelligence (AI) dominated discussions on the second day of the Web Summit in Lisbon, one of the world’s largest technology conferences. Beyond the giants responsible for the necessary infrastructure for applications, such as chip manufacturers, other businesses are now seeing AI as a means to enhance user interaction and rethink purchasing processes.

Brazilian Cristiano Amon, CEO of chip maker Qualcomm, believes AI will significantly impact how users interact with their mobile devices.

Qualcomm is banking on AI being closer to the user, operating on their devices, and less dependent on large data centers. “There’s a lot of investment going into data centers. What we are doing is changing that by bringing AI to where humans are. It costs differently when you run AI on your own device,” he said.

According to Mr. Amon, generative AI—using AI to create new content such as text and images—is the future of applications. “Generative AI will be the new user interface,” he stated. Mr. Amon used future banking applications as examples, where users will no longer have to follow steps to check their balance. They will simply ask AI, which will provide the information. “The apps we have today, their development will shift to an AI-first experience,” he added.

The changes brought about by AI are also on Alibaba’s radar, the retail giant that launched an AI tool to improve corporate procurement experiences. The platform is called Accio. Kuo Zhang, president of Alibaba.com, believes that AI tools can go beyond the well-known chatbots (software that responds to inquiries) and help redefine global commerce as we know it today.

“Today, it takes about 28 steps to find an item and complete a transaction. In this process, we have dozens of user experience barriers. AI is a technology to address these issues,” he explained. With Accio, a company can upload a spreadsheet with purchase items, and the AI will search for them.

Alibaba aims to ride the wave created by ChatGPT—the world’s most famous chatbot, developed by OpenAI—and boost sales. According to Alibaba’s data, initial surveys showed that the purchasing intent of companies using the new tool is 40% higher than traditional search engines. The platform uses data from over 50 million companies connected to the Asian giant.

Despite all efforts to understand AI’s role in the future, it remains unclear. “Most of the time when we try to predict the future, we are wrong,” said Thomas Wolf, co-founder and chief scientist of the collaborative platform Hugging Face.

Mr. Wolf mentioned that projections about AI often lead discussions into the realm of utopia. “We need to imagine how AI will integrate into society, and I think it will be much like the internet. It will be everywhere,” he noted.

There are signs that the world will see a significant leap in robotics by 2025, Mr. Wolf suggested. “The big question is what task humans will perform in the future,” he pondered, posing a challenge to Max Tegmark, president of the Future of Life Institute, a nonprofit focused on studying technology’s impact on society.

Mr. Tegmark gave an extensive response: “I think asking what humans can do better than machines is not the right question. Our brain is a biological computer. There’s nothing we can do now that machines couldn’t do better if we want them to. But we are the ones building this future. Why would we force ourselves to compete with machines? It doesn’t make sense. We call ourselves Homo Sapiens because of our intelligence. Maybe there’s something more valuable in us than that. I don’t think everything should be handed over to machines in the future.”

Hamilton Mann, vice president of the digital branch at Thales, a French defense company, said the doubts surrounding AI in society are natural. “This is new for us too. We are also learning, just as AI is evolving in society,” he said. Within Thales, Mr. Mann explained, technological development and the use of AI center on the human. “It’s about creating a system that will equip humans, who will be responsible for making decisions,” Mr. Mann concluded.

The reporter’s travel costs were covered by the Web Summit.

*By Cristian Favaro — Lisbon

Source: Valor International

https://valorinternational.globo.com/
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Inflation accelerates faster for low-income households, IPEA says

Institute links sharper inflationary impact on lowest income brackets to steeper increases in food prices, electricity

11/13/2024

October inflation rose for nearly all income levels in Brazil, with lower-income households seeing the highest increases, according to the Applied Economic Research Institute (IPEA). Only households with incomes above R$21,059.92 saw a slight deceleration. For very low-income households—earning less than R$2,105.99 per month—inflation climbed from 0.58% in September to 0.75% in October. Meanwhile, inflation rose from 0.55% to 0.71% for low-income households—those earning between R$2,105.99 and R$3,158.99.

The IPEA’s Income-Based Inflation Indicator, drawing on the Extended Consumer Price Index (IPCA) data from the Brazilian Institute of Geography and Statistics (IBGE), tracks inflation trends across income levels by total household income. The IPCA, Brazil’s benchmark inflation index, increased from 0.44% in September to 0.56% in October.

For households with middle-lower incomes (R$3,158.99 to R$5,264.98), inflation climbed from 0.48% in September to 0.61% in October. Middle-income households (R$5,264.98 to R$10,529.96) experienced an increase from 0.39% to 0.54%. Meanwhile, for middle-upper-income households (R$10,529.96 to R$21,059.92), inflation rose from 0.31% to 0.49%. Households earning over R$21,059.92, the only group to experience a slight deceleration, saw inflation ease to 0.27% in October from 0.33% in September.

The IPEA attributed the sharper inflationary impact on lower-income households to the steeper increases in food prices (up 1.06% according to the IPCA) and electricity costs (a 4.74% increase). Conversely, deflation in airline fares (-11.5%) and fuel (-0.17%) provided some relief for higher-income households.

“In October, although the food and beverage and housing categories were primary inflationary pressures across all income levels, the impact from these segments was proportionally stronger for lower-income households, given the larger share of their budgets allocated to these essentials,” said Maria Andreia Parente Lameiras, author of the study.

Higher inflation rates for low-income households have not been limited to October. Over the 12 months ending in October, the very low-income segment saw the highest inflation rate at 4.99%, while high-income households experienced the lowest rate at 4.44%. The average IPCA rate over the period was 4.76%, exceeding the Central Bank’s inflation target ceiling of 4.5%.

Year-to-date in 2024, low-income households have faced an inflation rate of 4.17%, compared to a lower rate of 3.2% for high-income households. By comparison, the IPCA rate over the same period stands at 3.88%.

*By Lucianne Carneiro — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/
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Congress leader says businesses must be heard about 6-day workweek

Government unlikely to push or expend political capital on approval

11/13/2024

Congressman Hugo Motta, the frontrunner to lead Brazil’s Lower House starting February, expressed concern on Tuesday regarding the constitutional amendment proposal (PEC) that seeks to end the six-day workweek followed by one day off (6×1). He emphasized the need to include business leaders in the discussions within the legislative house.

“I am very concerned, for instance, about this PEC recently introduced, the 6×1. A significant movement has emerged on social media supporting the PEC, which is a topic we need to discuss, but we must not listen to only one side,” Mr. Motta stated during a meeting with the Parliamentary Front for Entrepreneurship (FPE).

Mr. Motta stressed the importance of including employers in the debate to assess the proposal’s impacts. “We must also hear from those who employ; we need to consider both sides to avoid advancing an agenda potentially harmful to the country,” he said.

The initiative, led by Congresswoman Erika Hilton, has gained traction on social media recently. She is gathering signatures for her proposal on the subject.

The proposal aims to amend the Federal Constitution to reduce the workweek from 44 hours to 36 hours, with a maximum of four days a week and eight hours per day. Therefore, it is more comprehensive than just ending the 6×1 work schedule.

This move has sparked reactions from the entrepreneurial sector caucus, arguing that the constitutional change would increase costs, making services or goods more expensive.

Despite some support from the Lula administration, the government is not expected to make a strong effort or use political capital to push for the proposal’s approval.

Advisors to President Lula perceive that, given the current Congress composition, the proposal has almost no chance of progressing. However, the discussion is seen as beneficial for the government, as it could put the opposition in an uncomfortable position of blocking a bill ostensibly beneficial to workers.

Skepticism remains about the proposal’s advancement even within the Constitution and Justice Committee (CCJ), the first stage of the legislative process.

Vice President Geraldo Alckmin remarked that work schedule reduction “is a global trend.” He noted, however, that the topic has not been discussed within the government, leaving the debate to society and Parliament. “This hasn’t been discussed yet. But I think it’s a global trend. As technology advances, you can do more with fewer people, potentially reducing work hours. So, it’s a debate for society and Parliament.”

Mr. Motta cautioned against “extremism” in the debate. “I believe the Lower House cannot become a place where debates are hindered by personal or verbal attacks, which do not contribute to the discussion. It’s indeed the house where we can defend our viewpoints.”

Another PEC on the same topic, authored by Congressman Reginaldo Lopes, has been in the Lower House since 2019 without progress. Last year, the CCJ rejected its discussion and approved its removal from the agenda by 30 votes to 25.

Mr. Lopes’s proposal reduces the workweek to 36 hours without specifying the maximum number of days, while Ms. Hilton’s sets a four-day weekly limit.

In President Lula’s first year in office, the Workers’ Party took control of the committee, and the CCJ president, Congressman Rui Falcão, appointed Tarcísio Motta as the rapporteur. They attempted to schedule a favorable report in October 2023, but a motion by Congressman Gilson Marques removed the proposal from the agenda by a 30-25 vote.

Support for the PEC’s discussion was mainly limited to left-wing parties and the Social Democratic Party (PSD). Other parties, such as Liberal Party (PL), Progressive Party (PP), Brazil Union, and the Republicans, voted to remove the proposal from discussion, and the matter has not returned to the agenda.

Tarcísio Motta, who served as the rapporteur, left the CCJ, leaving the PEC without a rapporteur since. The committee is now led by Caroline de Toni, from the opposition.

Speaking to Valor, Mr. Lopes mentioned he would talk with the committee’s chair to request the appointment of a new rapporteur and suggested Congressman Alencar Santana Braga for the role.

Congressman Kim Kataguiri, who voted to remove the PEC from the agenda last year, released a video expressing support for ending the 6×1 workweek but opposing the PEC. “This is a circus, a farce, a setup; it’s using this for personal promotion, selling an illusion,” he criticized.

In a statement, Congresswoman Hilton said she learned of the 2019 PEC after starting to collect signatures for her proposal. She collaborated with Movimento Vida Além do Trabalho (Movement Life Beyond Work) to draft the text and strategy, aiming to provoke Parliament on the issue and drive “concrete advances for the working world.”

*By Raphael Di Cunto, Marcelo Ribeiro, Fabio Murakawa, Valor — Brasília

Source: Valor International

https://valorinternational.globo.com/
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Roncador Group restructures, intensifies focus on sustainability

Known for sustainable practices, the company’s Mato Grosso farm shifted from the largest cattle operation after property division

11/12/2024

Fazenda Roncador, located in Mato Grosso’s Araguaia Valley, once held the title of Brazil’s largest cattle ranch. That status, however, has changed: over the past three years, the three Dalla Vecchia siblings, heirs to the estate, have completed the intricate process of dividing the property.

Previously spanning 152,000 hectares—about the size of the city of São Paulo—Roncador has been in the family since 1978, when their grandfather, Pelerson Penido, founder of the CCR highway concessionaire, acquired it. Although it no longer claims the title of Brazil’s largest, Roncador remains a model of sustainable cattle ranching in the Amazon. This reputation is so well-regarded that JBS CEO Gilberto Tomazoni often references Roncador in international forums as a shining example of responsible ranching.

Following the division, Pelerson Penido Dalla Vecchia retained management of the newly defined Fazenda Roncador, transforming it from a loss-making entity into a profitable operation renowned for environmental stewardship. The property still preserves nearly 50% of its native forest cover and has used an integrated crop-livestock production system for over 15 years, with a significant reliance on biological inputs.

Mr. Dalla Vecchia has restructured the management of the 53,000-hectare “new” Roncador, forming a board of directors that includes Consultant Luiz Bouabci, Professor Wilma Bolsoni, and Zootechnician Antônio Chaker.

In addition to Fazenda Roncador in Querência, Dalla Vecchia retained a 50% stake in Fazenda Mantiqueira in São Paulo’s Pindamonhangaba, leasing the other half from his sister under a 20-year agreement. He also heads Calcário Vale do Araguaia, a mining business with operations in Cocalinho and Nova Xavantina, Mato Grosso.

“Mining is critical for us,” says Mr. Dalla Vecchia, noting that it generates profit and supplies materials for Roncador’s productivity experiments. Through mining, Roncador tests crop growth without conventional fertilizers, using only calcium silicate rock powder and cattle manure.

Though the farm’s structure and size have shifted, its commitment to innovation remains constant. Mr. Dalla Vecchia sees no contradiction in using Roncador as a research platform while pursuing profitability. “We run many tests, measure everything, but never compromise results,” he states. “And we never chase profit at any cost.”

The farm is also investing in irrigation pivots covering 4,000 hectares, with a capital outlay between R$80 million and R$90 million, providing “insurance” against climate variability. Additionally, Roncador is setting up small, modular soybean crushers to increase the amount of protein meal fed to cattle, which will, in turn, improve manure quality for crop nutrition.

Roncador’s many initiatives, most of them experimental, stand in contrast to the “simplify-and-scale” model often championed in corporate strategy. For many investment funds, startups, and economic players, simplification and the ability to easily replicate models are essential to business growth and success. However, Mr. Dalla Vecchia takes a different approach: while he scales up ideas that prove effective, his projects start with rigorous data analysis and statistics—a method uncommon in many agriculture sectors, especially livestock. “We undertake these projects because they generate [financial] results. If a concept looks good on paper but doesn’t hold up financially, it has no place here,” he states.

While Mr. Dalla Vecchia advocates for biological inputs, Roncador’s production is neither organic nor intended to be. “We use chemicals when needed,” he says. “As the harvest progresses, pests concentrate in the remaining unharvested areas, intensifying pressure in those zones. If there’s a fungal threat at that point, we apply fungicide.” To explain the approach, he draws a parallel with human healthcare: “It’s like taking antibiotics when you’re ill—you avoid it if you can, but you don’t refuse it when necessary.”

*By Patrick Cruz, Globo Rural — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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Mubadala seeks partners to launch BASE Exchange

The goal is to secure initial market turnover

11/12/2024

Brazil’s new stock exchange, now named BASE Exchange, has a logo and advanced technology and is actively seeking new partners to ensure an initial trading volume. Mubadala, the controlling shareholder, is supporting BASE in a roadshow across Brazil and the United States, working with Olimpia Partners to facilitate its liquidity partnership program.

“This is a ‘private placement’ where international and Brazilian strategic partners acquire a small percentage of the company, linked to a liquidity program. Over three years, the more trading volume partners bring to our exchange with accessible spreads, the more warrant they receive for future conversion,” explains BASE’s CEO, Cláudio Pracownik. “It’s not about raising capital. It’s about securing volume, governance, and fostering a long-term partnership.”

Although the details of the valuation and business plan have been discussed in meetings, BASE has yet to disclose the exact percentage of share capital that will be used for the program. This guaranteed volume is intended to attract other market players who will not join the shareholder base.

Mr. Pracownik, who recently held meetings in the U.S., will return in early December to continue discussions, aiming to confirm participants by early next year. Brazil’s competitor, B3, also originated from a partnership among market agents who initially held equity securities in BOVESPA, which were later converted into shares.

BASE Exchange, or BASE—an acronym for the Brazilian Stock Exchange—aims to establish itself as a national exchange, not just a local Rio institution. The name also signals a foundation of strength, as “base” in Brazilian Portuguese refers to a football club’s youth academy. “We joke about that here, too—BASE is here to play well with the home team,” says Mr. Pracownik.

The technology arm, previously known as ATG, has been rebranded as Flowa, which will serve as the exchange’s tech provider. Mr. Pracownik also chairs Flowa.

This week, BASE will publish connectivity specifications on its website, allowing participants to test connectivity and understand transaction characteristics. By December, BASE plans to release details on connecting to clearing services.

“We aim to be technologically ready by the end of this year. The regulatory processes with the Central Bank and [Brazil’s securities market authority] CVM have advanced significantly, and we hope to start regulatory testing early next year,” says Mr. Pracownik. Regulatory guidelines suggest a minimum of six months of rigorous testing, including market simulations in stress and typical scenarios with connected brokers and custodians.

Mr. Pracownik believes an in-house technology setup gives BASE the agility to respond to any adjustments requested by the Central Bank or the CVM during the testing phase.

The original story in Portuguese was first published on Valor’s business news website, Pipeline.

*By Maria Luíza Filgueiras — São Paulo

Source: Valor International

https://valorinternational.globo.com/
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Mubadala to sell Brazilian port and mining assets

November 12, 2024

A view of the Porto Sudeste. Mubadala Capital and Trafigura acquired Porto Sudeste in early 2014

Abu Dhabi’s Mubadala Capital has commenced work on selling Porto Sudeste, a Brazilian private port terminal.

The port is co-owned with Singapore-based commodities trader Trafigura.

Describing Porto Sudeste as a “mature” asset, Leonardo Yamamoto, executive director of Mubadala Capital Brazil, told Reuters that the company’s role is “no longer very relevant”.

Mubadala Capital and Trafigura acquired Porto Sudeste in early 2014.

Additionally, Yamamoto said the UAE company may consider selling its iron-ore mining project, Mineracao Morro do Ipe.

The move could offer investors an integrated operation by bundling the port and the mining asset, he said.

However, no precise time frame was given for the sale.

Mineracao Morro do Ipe produces around 3.5 million tonnes of iron ore per year, the report said, adding an investment of 1.3 billion reais ($230 million) will expand total production to about nine million tonnes annually.

In August, Mubadala Capital made early-stage investments into three US biotech startups, taking advantage of a broader decline in company valuations to buy into the fast-growing sector.

Mubadala Capital launched in 2011 with a remit to invest primarily in private equity and public markets in North America and Europe. In 2017 it became one of the first sovereign wealth funds to manage the money of third-party investors.

*By Pramod Kumar

Source: AGBI – Arabian Gulf Business Insight

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