According to the company, shift reduces the carbon footprint by 75%
12/09/2024
Norwegian agricultural giant Yara has started using biomethane as a substitute for natural gas in its production of sustainable ammonia. According to the company, this shift reduces the carbon footprint by 75% compared to traditional ammonia derived from fossil fuels. Yara aims to produce 6,000 to 7,000 tonnes of sustainable ammonia annually, generating approximately 15,000 tonnes of fertilizer per year.
Ammonia, a key component in nitrogen-based fertilizers, is also used in industrial solutions. The biomethane utilized in the process is derived from ethanol and sugar production waste, such as vinasse and filter cake. This renewable feedstock is produced by Raízen in Piracicaba, São Paulo, and supplied to Yara’s Cubatão Industrial Complex.
Daniel Hubner, Yara’s vice president of industrial solutions, emphasized the renewable nature of filter cake as raw material and noted Brazil’s significant potential to leverage this resource. He explained that the conversion of the plant to biomethane required minimal investment in infrastructure or internal processes. “The main change was replacing a fossil, finite molecule with a renewable, infinite one,” Mr. Hubner said, without disclosing the investment amount.
Despite this progress, low-carbon ammonia represents only a small fraction of the company’s overall production. “To decarbonize the entire plant, we would need ten more projects like this one,” Mr. Hubner said. While Raízen’s biomethane facility can process 60,000 cubic meters of methane daily, Yara’s full plant requires 700,000 cubic meters per day.
Mr. Hubner also highlighted the challenges posed by fluctuating natural gas prices in Brazil, which significantly impact ammonia production costs. “The cost of natural gas is fundamental for ammonia production and much of the chemical industry,” he stated, urging the government to implement more effective energy transition policies to enhance the sector’s competitiveness. “Natural gas prices in Brazil are unsustainable. While we talk about energy transition, it’s vital for the company to remain viable. Government plans must move from paper to action to make this competitiveness a reality for consumers.”
Market and partnerships
Guilherme Schmitz, Yara’s vice president of marketing and agronomy, stressed the importance of building market demand before expanding low-carbon ammonia production. “We need to create a market of consumers willing to pay for this,” he said, pointing to partnerships with agricultural and food companies as critical steps.
Yara expects a 40% reduction in the carbon footprint of coffee production within its supply chain starting next harvest, thanks to a partnership with the Cooxupé cooperative. The company is also negotiating additional partnerships with companies and cooperatives in coffee, citrus, and other crops to further its sustainability initiatives.
Petronas enters the market and Texaco makes a return, while Larco, Ale, and SIM vie for top rankings
12/09/2024
The entry of new brands into Brazil’s fuel distribution market, such as Petronas and Texaco—making a comeback after 16 years—along with the accelerated growth of medium-sized distributors, has shifted the balance of power in the sector in 2024.
While BR (Vibra), Shell (Raízen), and Ipiranga (Ultrapar) collectively hold over 50% of the market share, maintaining their positions in the rankings, the battle for the fourth spot has become more intense. Bahia’s Larco has overtaken Minas Gerais-based Ale (Glencore) in fuel volume sales after months of fierce competition, as Rio Grande do Sul-based SIM (part of the Argenta group) has closed in boosted by the acquisition of TotalEnergies’s distribution operations in Brazil.
As of October, and according to data from the National Petroleum Agency (ANP), Vibra Energia, formerly known as BR Distribuidora, leads with a market share of 21.7% in gasoline, diesel, and ethanol sales. Following are Shell/Raízen, with 18.6%, and Ipiranga, which signed a licensing agreement with Chevron to use the Texaco brand as well, with 17.2%.
In fourth place, significantly behind the top three, is Larco, with a 2.5% market share as of October, taking the spot that Ale Combustíveis held in recent years. The Glencore distributor, a giant in international commodities trading, accounted for 2.1% of the market during the same period, threatened by SIM, which licenses the Petronas brand in the country.
Growth strategies vary and target both individual consumers and large corporations, as well as TRR operations—Transporter-Reseller-Retailer, companies authorized by the ANP to purchase fuel in bulk and sell it retail.
Larco is advancing more rapidly in selling to unbranded gas stations (those without brand loyalty agreements), while SIM is investing in expanding its branded network and making acquisitions. Meanwhile, Ale aims to convert more unbranded stations to its brand and grow in the large consumer segment.
“Naturally, we will be the fourth largest. But our focus is not on volume; it is to offer a new proposal for branded stations, with an international brand, focusing on quality and good practices,” said Neco Argenta, CEO of the group that owns distributors SIM, Charrua, Querodiesel, and more recently, TotalEnergies.
Within the group’s ecosystem, there are about 1,000 branded stations, including Shell, Ipiranga, and Vibra, making it the largest network of fuel stations in the country. With the acquisition of TotalEnergies, SIM is accelerating its expansion into other regions, planning to convert the 240 stations acquired into the Petronas brand over the next two years.
Mr. Argenta states that in five years, the goal is to have 1,000 Petronas stations in the country, through conversions from TotalEnergies and new partner contracts, with an estimated investment of R$50 million. The first three Petronas stations in the country are in São Paulo, and the Malaysian group recently approved plans to speed up the network’s expansion.
With projected revenues of R$18.5 billion for the group in 2024, the fuel volume is expected to reach 3.5 billion liters.
Founded in 2000 by businessman Paulo Roberto Evangelista, who was already active in the transportation sector, Larco accelerated its growth from 2016 onwards, with the inauguration of its first fuel storage base in Candeias, Bahia. Today, it operates in 16 states and leads sales to unbranded stations, boasting over 4,000 registered clients.
CEO Alberto Costa Neto said Larco’s strategy is to grow both in distribution to unbranded stations and expand its network, aiming to end the year with 250 branded stations. “Larco grows by expanding its network, diversifying the market, and in B2B [business-to-business], especially where agribusiness is stronger,” he said.
In October, Larco set a sales record, reaching 357 million liters, but the goal is to reach 400 million liters per month by 2024. With revenues of R$11 billion in 2023 and 2.3 billion liters sold, the company projects R$17.5 billion in revenues this year, with 3.5 billion liters. “We don’t typically grow through acquisitions. Our focus is organic expansion, reinvesting in building new bases and ground logistics,” the executive said.
Ale Combustíveis, which has a larger station network than Larco, aims for R$15 billion in revenues in 2024. The strategy focuses on two pillars: converting stations to its brand and expanding the corporate consumer base through exclusive contracts.
The company plans to gain 360 new clients throughout the year, having already secured 165 in the first half, including 77 new Ale-branded stations and 88 major corporate clients (B2B). Additionally, the company anticipates a 200 million-liter increase in distribution volume, reaching 3.2 billion liters in 2024.
Last week, Rafael Grisolia was announced as the new CEO. He will need to seek greater efficiency in storage and distribution and better exploit certain logistical axes. In a segment with tight margins, below 4%, capturing new clients also involves retail operations and services, such as convenience stores.
“We have a strong brand in states like Minas Gerais, Rio Grande do Norte, Santa Catarina, Espírito Santo, and Maranhão, and our dealers deliver this brand value with a range of premium products, additives, and convenience stores […]. The B2B market is another opportunity to leverage the Ale brand’s strength. This combination of strategies will be essential to boost both volume and business profitability,” says Mr. Grisolia.
The sector has also seen new business models, such as the return of the Texaco brand through a licensing agreement with Ipiranga, an Ultra group distributor, with a portfolio focusing on fuel technology and appealing to car enthusiasts.
The first Texaco station operates in Palhoça, Santa Catarina, and plans to expand to Rio de Janeiro and São Paulo markets. Bárbara Miranda, vice president of marketing and business development at Ipiranga, explains that the return is linked to studies indicating the brand’s strong presence in consumer memory.
In this business model, the authorized entrepreneur sets up the point of sale, while marketing and expansion strategies are conducted jointly. The goal is for Texaco and Ipiranga to occupy distinct market niches to prevent brand market cannibalization.
“In the Texaco model, there is regional exclusivity, and the regional station investment is made by the authorized representative. From there, Ipiranga and the authorized representative, Rede Galo, work together on the network’s development plans,” she states. “Ipiranga will have two brands to cater to two micro-market profiles, which has more to do with which consumer segment is valued than social class,” she adds.
With nationwide reach and serving multiple audiences, Ipiranga’s outlook remains optimistic, as Brazil’s fuel business continues to grow, with an expected increase of over 5% in 2024. The Ultrapar fuel distributor aims to capture around R$400 million in logistics and distribution efficiencies over the next three years, including faster loading, fewer accidents, improved fleet productivity, and reduction of truck detention time.
Raízen, which licenses the Shell brand in Brazil, remains focused on customer service and expanding its branded network, ensuring “market share” and brand image. The company has been increasing both the number and duration of its contracts. Raízen declined to comment on the matter.
Trade surplus hits $7bn, down 20% year-on-year, as imports outpace exports
12/06/2024
Oil has set a new record in export value for the year through November, becoming Brazil’s top exported product for the first time since the country began tracking trade balance data in 1997. The export of the commodity totaled $42.76 billion over the first 11 months of 2024, marking a 9.5% increase compared to the same period last year.
Brazil’s overall trade balance recorded a surplus of $7.03 billion in November, a result 20% lower than the same month last year. Exports reached $28.02 billion, a growth of 0.5%, while imports hit $20.99 billion, an increase of 9.9%. For the year to date, the surplus stood at $69.86 billion, reflecting a 22% drop compared to the same period in 2023. Exports totaled $312.27 billion, a rise of 0.4%, whereas imports amounted to $242.41 billion, up 9.5%. The Secretariat of Foreign Trade (SECEX) projects a trade surplus of $70.4 billion for the year.
Herlon Brandão, director of statistics and foreign trade studies at the Ministry of Development, Industry, Trade and Services (MDIC), stated on Thursday (5) that the export of goods in November and year-to-date set records for both periods. He emphasized that the increase was driven by volume rather than price hikes.
SECEX data indicates that the volume shipped from January to November rose by 4.2%, with a 3.6% decrease in average prices compared to the same period in 2023. In terms of imports, the volume grew more rapidly, but the decline in average prices lessened the impact on the trade balance. Over the same 11-month span, the volume of imports increased by 18.1%, while average prices fell by 7.4%.
Soybeans, which led Brazilian exports in 2023, fell to second place. The export of this grain totaled $42.08 billion through November, a 17.9% decline from the same months in 2023. Iron ore ranked third, totaling $27.64 billion with a 2% increase over the same timeframe, according to data released on Thursday by SECEX/MDIC.
Oil is expected to end 2024 as Brazil’s leading export, as the shipment of soybeans is winding down due to seasonal harvest factors. According to SECEX data, the daily average export of soybeans in November was $58.56 million, while oil averaged $238.22 million.
This performance increased oil’s share of Brazil’s total exports from 12.6% in 2023 to 13.7% in 2024, while soybeans’ share dropped from 16.5% to 13.5%, from January to November. The two commodities exhibited varying trends in export volumes and sales prices. Oil experienced a 4.3% drop in average prices in 2024, but the 14.4% increase in export volume offset the price decline. Soybeans, on the other hand, saw a larger decrease in average price, falling 16.9%, and the volume shipped also decreased by 1.3%.
The lower volume of soybean exports is attributed to a reduced harvest. According to the latest data from the National Supply Company (CONAB), there was a 7.23 million-tonne decrease in the total soybean harvest for the 2023/2024 season compared to the previous period. Brazilian oil production also hit a record in 2023. As of October 2024, production is 0.3% higher than during the same period last year, according to the latest data from the National Petroleum Agency (ANP).
José Augusto de Castro, president of the Brazilian Foreign Trade Association (AEB), suggests that soybeans may reclaim their top export status in 2025, as initial sector estimates for next year’s harvest indicate the potential for a new record in production. However, he cautions that projections can change and there are concerns about possible climate impacts.
Welber Barral, partner at BMJ and former secretary of foreign trade, notes that the decline in prices is heavily influenced by China, which, along with Hong Kong and Macau, accounted for 24.5% of Brazil’s imports from January to November. Mr. Barral explains that China has been lowering prices to offload products in various markets, including Brazil, amid an oversupply and facing protectionist measures.
Mr. Barral adds that the depreciation of the Brazilian real against the dollar in recent times is unlikely to proportionally reduce Brazilian imports. This is due, he points out, to the necessity of importing certain industrial inputs regardless of the exchange rate. “Moreover, the depreciated exchange rate sometimes leads to price negotiations between importers and suppliers.”
Mr. Barral highlights other factors that could affect prices starting in 2025, including the election of Donald Trump as president of the United States. Protectionist measures from the U.S. government could slow down global trade, potentially contributing to a reduction in international average prices. Depending on the sectors impacted by potential protectionist measures, there could also be shifts in export flows, altering global trade dynamics.
China’s fifth-largest automaker plans R$5.8bn investment to start production in Brazil
12/06/2024
Automakers setting up operations in Brazil typically begin by establishing dealerships, factory infrastructure, and staff training. GAC, the fifth-largest carmaker in China, is taking a different approach. As it enters the Brazilian market, its first move was to ink partnerships with local universities to research and develop ethanol-powered vehicles.
The new Chinese player aiming to invest in Brazil is leveraging its strategy to align with Brazil’s strengths in the global decarbonization of transportation—namely, the use of biofuels. It has chosen Brazilian researchers to assist in developing vehicles powered by this type of renewable energy.
GAC confirmed during an event in São Paulo on Thursday (5) an investment of R$5.8 billion in Brazil over the next five years. Out of this total, R$120 million was set aside for agreements signed the same day with the Federal University of Santa Catarina, the Federal University of Santa Maria, and the State University of Campinas.The universities will lead education and research projects in the fields of vehicles, engines, and auto parts. According to the company, these partnerships will include internships for students and professionals in both China and Brazil, as well as joint training programs. The cooperation agreements are set to last five years, with the possibility of renewal.
The presidents of the three universities attended the event, where they signed memorandums of the technical cooperation agreements alongside Wei Haigang, CEO of GAC International, and Alex Zhou, who will serve as GAC’s CEO in Brazil.
In a prior speech, Mr. Haigang stated that the company’s goal, established in 1997 but with origins dating back to a manufacturer from 1955, is to “revolutionize the Brazilian automotive industry.” “We will not only produce automobiles but also help define the future direction of the Brazilian industry,” he emphasized.
Mr. Haigang’s role gains greater significance through the Brazilian operations. Outside of China, GAC has only small operations in Malaysia and Thailand. With production in Brazil, the company plans to export to the Latin American region, he said.
Mr. Zhou was selected to lead the Brazilian operations due to his experience in the Americas, having previously worked in the United States.
The executives have not revealed where the brand’s vehicles might be produced. They did not confirm any connection between the partnerships with the universities based in the South region and a potential intention to establish a factory in the same region.
Nor did they confirm the idea of possibly acquiring plants from Honda or Toyota—both Japanese companies are GAC’s partners in China, where their vehicles are produced by GAC. Toyota is in the process of downsizing a plant in Indaiatuba to focus its production in Sorocaba—both cities in the São Paulo state. Honda has also ceased car production in Sumaré and relocated operations to Itirapina, in São Paulo.
According to Mr. Haigang, the company is still evaluating the best location for production, considering the possibility of acquiring an existing factory. The plan is to begin production in 2025.
On the other hand, the first models to be marketed will be imported in early 2025 and have already been defined. The compact electric Aion and a line of sport utility vehicles are included in the company’s program.
Mr. Haigang said the plan is to have 30 dealerships in the first phase and quickly expand to 50. According to him, the aim is to produce both electric and ethanol-powered hybrid vehicles as well as combustion-engine vehicles. “We will research what consumers want,” he said.
The intentions for strong plans in Brazil are evident in the choice of local executives. One of the first hires, for the marketing department, was Marcello Braga, who brings extensive experience from the Brazilian group CAOA.
Guangzhou-based GAC is listed on the Hong Kong and Shanghai stock exchanges. In 2023, it produced 2.53 million vehicles in China alone, exceeding the entire Brazilian market.
The interest in Brazilian research is part of GAC’s core. In China, the automaker has one of the most comprehensive research and development centers, which the company claims has consumed an investment equivalent to $25 billion. The center employs over 5,000 people.
In November, GAC and Huawei announced the creation of a new brand of smart energy vehicles.
“The partnerships with Brazilian universities will strengthen our international research and development network,” Mr. Haigang highlighted. According to the executive, Brazil needs to increase its competitiveness. “Brazil is an important country, it has a large market and uses ethanol,” Mr. Haigang said. “We want to set a new standard for the industry,” he added.
On Wednesday (4), GAC marked its arrival in Brazil by setting up its office in São Paulo. If its plans succeed, the brand could become another player in the strong wave of new Chinese competition.
At Vale Day, company emphasizes iron ore production flexibility amid challenging scenario
12/06/2024
Vale CEO Gustavo Pimenta said the company is studying the Bahia Mineração (Bamin) project but no investment decision has been made. He commented on the topic on Tuesday (3), during Vale Day, a company meeting with investors, at the New York Stock Exchange. It was the first time the mining company spoke about considering the project.
“Bamin is one of many projects we evaluate, but there’s no approval yet. It’s simply due diligence that our team must conduct,” Mr. Pimenta told journalists in an interview following the event.
Bamin is a mining company operating the Pedra de Ferro mine in Caetité, Bahia, owned by Kazakhstan’s Eurasian Resources Group. The project also includes a segment of the West-East Railway (Fiol) and a port terminal in Ilhéus (Bahia) for iron ore shipment. Behind the scenes, there are rumors that the federal government is interested in Vale acquiring the asset, which is expected to require around R$30 billion in investments. This information was reported by columnist Lauro Jardim of “O Globo.”
During Tuesday’s (3) presentation at Vale Day, Mr. Pimenta emphasized that the company’s projects must align with its Vision 2030 framework: a superior product portfolio, customer proximity, and a results-oriented focus.
This vision is intended to help the company navigate a more challenging global landscape in the iron ore market in the coming years. Executives highlighted uncertainties ahead, such as the anticipated slowdown of China’s economy, potential increased protectionism in the U.S. steel market, and possibly weaker demand for iron ore.
Despite these challenges, the tone of the presentations suggested that Vale has enough flexibility to deliver strong results in iron ore over the coming years, based on the three pillars of its Vision 2030.
Mr. Pimenta, who took on the CEO role in October and attended his first Vale Day as the head of the company—previously serving as the CFO—stressed that the company considers $50 per tonne as the breakeven price for iron ore, the level at which it can sell without incurring losses. The commodity currently hovers around $110 per tonne, with market speculation of a potential drop to $90 per tonne next year.
To prepare for the anticipated market conditions in the coming years, Vale is banking on the strength of its production, product quality, and cost structure. On Tuesday (3), the company updated its iron ore production forecast, projecting about 328 million tonnes by the end of 2024, increasing to between 325 million and 335 million tonnes next year; between 340 million and 360 million tonnes in 2026; and stabilizing around 360 million tonnes by 2030.
By the end of this period, the production of agglomerates, which are higher-quality inputs aiding steel clients in decarbonization, is expected to reach between 60 million and 70 million tonnes. By 2030, the company’s average portfolio is projected to have an iron content of 63% to 64%, considered high by industry standards.
Among the projects expected to significantly increase the company’s capacity is Capanema in Minas Gerais, adding 15 million tonnes to production with tests commencing earlier than planned. Vargem Grande 1, also in Minas Gerais, is set to add another 15 million tonnes, and the S11D+20 project in Pará is anticipated to contribute an additional 20 million tonnes of iron ore with 65% iron content.
In the base metals sector, copper was a highlight at Vale Day, with current production of around 350,000 tonnes annually. The start-up of the Bacaba and Alemão projects by 2030 is expected to ensure production between 420,000 and 500,000 tonnes, with projections of approximately 700,000 tonnes between 2030 and 2035.
Lower House is moving to limit loan capabilities; industrial sector criticized measure, citing risks
12/05/2024
In a setback for the Lula administration, the Constitutional and Justice Committee (CCJ) of Brazil’s Lower House approved on Wednesday (4) a constitutional amendment proposal (PEC) mandating that loans from federally controlled state-owned banks require congressional approval when involving international operations. The measure was passed with 31 votes in favor and 27 against.
The proposal aims to block financing by the Brazilian Development Bank (BNDES) for projects abroad, raising concerns within industrial sectors. This issue has been a contentious point for administrations led by the Workers’ Party (PT) and was one of the first topics brought up by the opposition following President Lula’s return to office.
Introduced in March, the PEC has been on the legislative agenda since then. Initially, the government faced challenges with the proposal in the CCJ. However, in August, following the inclusion of members of Republicans and the Progressive Party (PP) in cabinet positions, the proposal was temporarily withdrawn from the agenda—until Wednesday, when it resurfaced and was passed with support from these parties.
The BNDES attempted to persuade lawmakers with technical notes arguing that the amendment would reduce its competitiveness against private-sector lenders. The bank also warned that congressional oversight of loans could breach banking confidentiality, expose sensitive business information, and create legal uncertainties for Brazilian companies. “The PEC harms Brazilian corporate exports, creates excessive bureaucracy, reduces the competitiveness of Brazilian industry, and hinders income generation in the country,” said José Luís Gordon, BNDES’s director of productive development, innovation, and foreign trade, in a statement.
The PEC’s rapporteur, Congressman Arthur Maia, noted that the proposal could be amended in the Lower House’s special committee but emphasized the importance of debate. “It is crucial for the Parliament to take a stand against a practice that the Brazilian society finds objectionable: BNDES funds being sent abroad based on ideological criteria, which have caused losses for Brazil,” he said. “We cannot ignore the fact that Brazil is being harmed.”
Controversial operations associated with public dissent and corruption allegations in PT-allied foreign governments led to significant defaults. According to BNDES’s website, Cuba owes $250 million in overdue payments, Venezuela $722 million, and Mozambique $122 million. However, the entity that bore the accounting loss was not the BNDES, but the Export Guarantee Fund (FGE).
The Brazilian Development Association (ABDE), representing development banks and cooperatives, highlighted that the proposal also affects Banco do Brasil, Caixa Econômica Federal, Banco da Amazônia, and Banco do Nordeste. “In all forms of export support, disbursements are made in Brazil, in reais, to the Brazilian exporter, with no funds sent abroad; the money remains in Brazil,” the association stated.
The vote complicates another proposal from the Lula administration. In November last year, the federal government introduced a bill to update BNDES regulations to align with current practices and requirements from Brazil’s Federal Court of Accounts (TCU) and reinstate financing for exports of goods and services, which has been suspended since 2017.
The proposed rules include prohibiting loans to countries in default with Brazil and publishing information about the export financing portfolio on the bank’s website, with annual reports to the Senate on these loans. Although submitted over a year ago, the bill has not yet been forwarded to the committees by Lower House Speaker Arthur Lira. It is up to him to establish a special committee to discuss the PEC.
Controlled by Appian funds, Vale Verde focuses on ore processing
12/05/2024
Chinese mining group Baiyin Nonferrous is acquiring Brazil’s Mineração Vale Verde, owned by British private equity manager Appian Capital Advisory, Valor’s business website Pipeline learned. The mining company operates the Serrote mine in the state of Alagoas, specializing in copper concentrate production.
The acquisition will be executed through the purchase of stakes in AMH 2, Appian’s investment vehicle, and Serrote Participações—both the owners of Mineração Vale Verde and owned by Appian-managed funds.
The deal is pending approval from Brazil’s antitrust regulator, the Administrative Council for Economic Defense (CADE), and the Chinese government. People familiar with the matter expect the deal to be finalized early next year.
Appian took over Mineração Vale Verde in 2021 and is responsible for developing the Serrote project in Craíbas, located in the hinterland of Alagoas. The project includes building a facility for ore processing and copper concentrate production.
Since the project’s launch, 271,400 dry metric tonnes (DMT) of copper concentrate have been exported, with 74,000 tonnes shipped this year through October. In the first four months of this year, more than 32,000 tonnes of copper concentrate were shipped to China.
Copper is one of the metals with projected demand growth, driven by its use in energy transition technologies, such as electric vehicles, batteries, wind turbines, and solar panels.
The deal marks Baiyin’s first operation in Brazil. The group specializes in mining, smelting, and the production and sale of various non-ferrous metals in China, including copper, zinc, lead, gold, and silver.
Appian Capital has other operations in Brazil, including Atlantic Nickel (ATN), a nickel sulfide producer in southern Bahia, and a graphite production project in the same state.
When contacted by Pipeline, Appian stated that, as the largest private equity investor in metals and mining globally, it “constantly evaluates opportunities to optimize its portfolio and maximize financial returns for investors but does not comment on ongoing sales processes.” The Chinese group Baiyin did not respond to requests for comment.
Gas volumes confirmed at the site surpass 6 trillion cubic feet
12/05/2024
Petrobras and Colombian company Ecopetrol have announced the largest gas discovery in Colombia’s history with the drilling of the Sirius-2 well, where gas volumes exceeding 6 trillion cubic feet (Tcf) have been confirmed.
The consortium is set to invest $1.2 billion in the exploratory phase and $2.9 billion in the production development phase. These amounts are already included in Petrobras’s business plan through 2029, which was recently revealed. The four wells in the area are expected to produce about 13 million cubic meters per day over a decade.
According to Petrobras, this discovery could boost Colombia’s current reserves by 200%. The well drilling commenced on June 19 and is situated in an offshore block 77 kilometers from Santa Marta in northern Colombia, at a water depth of 830 meters.
The company anticipates starting natural gas production three years after obtaining all environmental permits and upon confirmation of the commercial viability of the discovery, projected by 2027.
The consortium, consisting of Petrobras Colombia as the operator with a 44.44% stake and Ecopetrol holding 55.56%, will begin essential data acquisition for the installation of the pipeline and the transportation of natural gas from the field to the onshore gas treatment unit, as well as the installation of subsea production systems.
Milken Institute hosts São Paulo meetings to showcase sustainable investment opportunities
12/02/2024
Executives from the Milken Institute, an American think tank that connects philanthropists and investors globally, are holding their first major event in São Paulo this week. The gathering brings together entrepreneurs, CEOs, public officials, and environmental specialists to explore investment opportunities, particularly in climate change initiatives. Brazil’s burgeoning carbon credit market is a key focus for the institute.
The Milken Institute, a non-profit organization, hosts high-profile conferences in cities like Singapore, London, Abu Dhabi, New York, Washington, and Los Angeles to tackle global challenges with innovative ideas.
“Within the institute, there is a network of more than 400 pension funds, sovereign wealth funds, and family offices managing a collective allocation of approximately $34 trillion,” said Rodrigo Bettini, senior advisor and head of the institute’s Latin America division.
“They attend our events to meet people and learn about advancements in diverse sectors such as agribusiness, AI, finance, education, and climate.” These meetings also attract professionals seeking capital injections for their projects.
Around 150 participants are expected at the São Paulo events, including a dinner on Monday and a breakfast on Wednesday. “Our goal is to guide foreign investors toward sustainability opportunities in Brazil,” said Daniella Levy, head of the institute in Brazil. Another aim is to strengthen relationships with Brazilians who could join the institute’s flagship annual conference in Los Angeles.
The Milken Institute was founded by Mike Milken, a prominent figure in the U.S. financial market during the 1980s. Convicted of securities law violations, Mr. Milken served time in prison and was granted clemency in 2020 by then-President Donald Trump. Today, he focuses on the institute, where he serves as chairman, and on the Milken Center for Advancing the American Dream.
Ms. Levy, Mr. Bettini, and the institute’s CEO, Richard Ditizio, are spearheading this week’s discussions. Mr. Bettini highlighted Mr. Ditizio’s positive impression of Brazil during a visit in January. “He was struck by the breadth of actions and policies here addressing sustainability and ESG standards,” said Mr. Bettini. “In our opinion, Brazil is advancing in sustainability, technology, fintech, and infrastructure in innovative ways, but the world isn’t aware of these developments.”
The institute aims to expand global awareness of Brazil’s innovations, “channel more foreign investment into the country, and support these initiatives on a global scale,” said Mr. Bettini. A key focus is the carbon credit market, seen as a transformative opportunity for the nation.
“We believe Brazil will be the Saudi Arabia of the carbon credit market, and we are confident this sector will revolutionize and create significant socio-economic opportunities for Brazilians,” said Mr. Bettini.
In November, the Chamber of Deputies (Brazil’s Lower House) approved a bill establishing rules for the carbon credit market, following its earlier passage in the Senate. The formalization of these rules has been highly anticipated, with Brazil widely recognized for its immense potential in carbon projects.
The agenda for the two meetings, hosted at a São Paulo hotel, will cover themes such as sustainability, environmental preservation, economic growth, living conditions in the Amazon, and strategies to attract foreign investment. These topics are expected to gain further prominence in 2025 when Brazil hosts COP30 in Belém.
TORONTO, Dec. 02, 2024 (GLOBE NEWSWIRE) — Belo Sun Mining Corp. (“Belo Sun” or the “Company”) (TSX: BSX, OTCQB:BSXGF) reports that the Federal Court of Altamira, has ruled on a case filed by the Federal Public Defender’s Office (DPU) and the Public Defender’s Office of the State of Pará (DPE) in 2022 contesting the agreement made between the Company and the Brazilian National Institute of Colonization and Agrarian Reform (INCRA) in November 2021 (“INCRA Agreement”). The Judge has declared the INCRA Agreement null and void on procedural grounds. The ruling stated that INCRA had not completed an ordinance required to announce the measure taken by the government on the declassification of the area from agrarian reform. However, the Judge rejected the DPU’s request to annul the Volta Grande (PVG) environmental licensing process and as requested by the Company excluded the DPE from the lawsuit. The Company will be evaluating all legal options, including a potential appeal of the decision and continuing to work with INCRA.
Commenting on the Federal Court of Altamira ruling, Ms. Ayesha Hira, Interim President and CEO of Belo Sun, said, “We look forward to working with INCRA on the next steps following the ruling by the Federal Court in Altamira. We will also be evaluating all the legal options available to the Company. We believe PVG is well positioned to bring benefits to the surrounding communities, local farmers, landholders and the municipality. We continue to work to benefit the region and all stakeholders as we look to advance PVG.”
INCRA Agreement
A small portion of INCRA designated land in the PVG vicinity overlaps the Company’s mining concessions and will be affected by the mining operations of PVG (“impacted area”). The Company entered into the INCRA Agreement on November 26, 2021, under which INCRA was to provide the Company access to the impacted area for mining activities. Further details on the INCRA Agreement can be found in the Company’s Management, Discussion, and Analysis filed on November 6, 2024.
About the Company
Belo Sun Mining Corp. is a mineral exploration and development company with gold-focused properties in Brazil. Belo Sun’s primary focus is advancing and expanding its 100% owned Volta Grande Gold Project in Pará State, Brazil. Belo Sun trades on the TSX under the symbol “BSX” and on the OTCQB under the symbol “BSXGF.” For more information about Belo Sun, please visit www.belosun.com.
For inquiries, please contact Belo Sun Mining Corp, +1 (416) 861-2262 or info@belosun.com .
Caution regarding forward-looking information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the Federal Court in Altamira’s decision regarding the INCRA Agreement; the Company’s plans and next steps following the Court decision; the benefits of the PVG; and progress of the advancement of the Volta Grande Project. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com and on the Company’s website at www.belosun.com . Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
