In last month’s newsletter, we opened the text in a different way – UNIQUE, remember? We asked you to take your cell phone out of your pocket, open Spotify and listen to a playlist of…tecnobrega (Brazilian Genre). Well then. Maintaining this level of originality and excitement won’t be easy, so today, we’re going to complicate things: do you remember your chemistry classes in high school (or “secondary education”, for the older guys)? Honestly, I bet anything that you don’t know that. 😉… So, let’s go!

At the bottom of that colorful table that you “loved” so much, there were some minerals with really crazy names: scandium, yttrium, lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, holmium, erbium, thulium, ytterbium and lutetium.

It may all seem like medicine´s nicknames, but it’s not. Quite the opposite. They are the so-called Rare Earth Elements (REEs), which are given this name because they are difficult to extract and have characteristics such as malleability, intense magnetism and high absorption and emission capacity, as explained in the report “The role of minerals in the energy transition process”, prepared by the consultancy KPMG in 2023.

And why are we talking about this? Because these are some of the metals that are at the center of the global market debate due to the energy transition. Rare earth metals are considered strategic minerals, according to the Brazilian Ministry of Mines and Energy, because they are necessary, for example, for the manufacture of wind turbines and hybrid car engines, in addition to also being used in the production of superconductors, LED lamps and lasers.

Minerals used in electric cars compared to conventional cars. (Photo: IEA – International Energy Agency)

But not only them. Lithium, nickel and cobalt are also essential components of batteries, such as those that power oilless cars – I couldn’t resist!

“The transition from fossil fuels to clean energy sources will depend on critical energy transition minerals. Minerals – such as copper, lithium, nickel, cobalt – are essential components in many of today’s fast-growing clean energy technologies, from wind turbines and solar panels to electric vehicles”, says the United Nations (UN) in a document on critical minerals.

According to the UN, consumption of these minerals could increase six times by 2050, with their market value reaching USD 400 billion, exceeding the value of all coal mined in 2020. To achieve the goals of the Paris Agreement, more than three billion tons of energy transition minerals and metals are needed to deploy wind, solar and energy storage.

From this we can already see the strategic importance of a sector that is at the heart of the Industrial Revolution and that now, in the 21st century, is also proving to be essential for a world seeking energy transition.

ONUʹs Headquarter, New York, USA.

To get the job done, the mining sector is currently undergoing an intense socio-environmental transformation, reviewing processes, visions, ways of acting and facing its role in a society that demands transparency, ethics, and social responsibility from all areas of the economy. And, in this mission, this segment has used two powerful instruments: communication and innovation.

In the first case, communication responds to Mining’s search to be more open and transparent, trying to dialogue more closely with society. In fact, in recent months, the sector has intensified actions to improve its image, showing that it is present in people’s daily lives and that it is undergoing a transformation towards sustainability. Just to mention a few examples, the Brazilian Mining Institute (IBRAM) and the mining companies Vale and the Norwegian multinational Hydro launched institutional campaigns on TV, radio, the internet, and even urban furniture. In general terms, the concept of the actions was to show that mining is present in people’s daily lives, from materials used for sports equipment to cars and buses, musical instruments, household appliances, and electronics.

“IBRAM’s new advertising campaign aims to bring the sector closer to society,” says IBRAM on its website regarding the campaign, launched by the entity in July. “In keeping up with the changes in an increasingly connected world, we understand that we need to demonstrate our openness, giving proper visibility to the important transformations and innovations that we have carried out so far, as well as the lessons we have learned,” it explains.

In the second case, mining is intensifying its search for innovation to meet the new challenges that arise, such as the development of sustainable solutions and cutting-edge technologies, such as Artificial Intelligence, Deep Learning, autonomous cars, robotic dogs, drones, and even Wi-Fi detonation.

Mining techs in action

Founded in 2015, it developed a system that extracts data from images using computer vision in real time, using AI and Deep Learning in this process. “We monitor more than 40 mining assets, such as apron feeders, conveyor belts, pellet cars, filters, wagons and excavators,” says Roberto Fernandino, CEO of SVA.

The solution plays an important role in a critical area for mining: safety. “Today, we monitor more than a hundred dams of the largest mining companies in Brazil using early detection of slope movement,” he says. “This generates real-time events in the monitoring centers to activate evacuation sirens within the self-rescue areas,” says the CEO of SVA Tech, which has 51 employees, 30% of whom work in the Research and Development area.

Oh… But what is a slope? Check this out: in the steel industry, a slope is a type of fortification that supports a construction up or down. It’s almost like aligning the base of the construction work.

“Our solution for flood forecasting is currently applied in 35 municipalities, but within the drainage areas of these 35 municipalities, many others are monitored and have information from our solutions,” says Founder and CEO Henrique Rocha. “The same results we generate for the electricity sector in terms of anticipating extreme events, with diagnostics and structural actions to mitigate such damage, also work for mining,” he adds.

“Recently, one of our largest clients managed to transform around 170 thousand tons of its waste into reusable materials, generating more than BRL 500 thousand in revenue”, says Athos Silva, executive director of Geeco.

With a holistic vision, the company aims to work not only with technical aspects, but also with logistical, legal and business aspects. For Silva, innovation is a key issue in this process. “Innovation is essential to make mining more sustainable. We need to not only explore new ideas and technologies to reduce, recycle and reuse, but mainly to be successful in some of these explorations”, he says.

Innovation giants

If there are startups on the success charts, there are certainly also industry giants looking for innovation gold nuggets at the bottom of the valley. Did someone mention Vale? Yes, that’s the one. In 2022, the company created its own Corporate Venture Capital (CVC) vehicle, Vale Ventures, to invest in startups focused on sustainable solutions for mining. With an approved budget of USD 100 million, the target is four areas related to sustainable mining:

• Decarbonization in the mining chain.
• Mining without waste.
• Energy transition metals.
• Mining of the future.

So far, three investments in startups have been announced:

• Boston Metal, in 2021, to promote a technology that reduces metal oxides, enabling the transformation of iron ore for the production of steel with zero CO2 emissions. The investment was USD 6 million.
• Allonia, in 2023, a transformational biology company based in Boston, United States. Vale Ventures participated in the extension of Allonnia’s Series A capital increase – which reached a total of USD 30 million – acquiring a minority stake in this amount.
• Mantel, in 2024, a Boston-based startup responsible for a solution for capturing carbon directly from low-cost industrial sources. According to Bruno Arcadier, Head of Vale Ventures, it was necessary to analyze another 500 startups before defining these investments – and other announcements are expected soon. “Apart from that, of the startups we analyzed, we forwarded many to other areas of Vale”, he recalls.

Another mining company that set up its own CVC is ArcelorMittal. Açolab Ventures, a BRL 110 million fund created in 2021, is focused on Latin American startups in the seed and Series A stages, with solutions related to civil construction, customer experience, raw materials, logistics, renewable energy and environmental efficiency, among others. Since its launch, the fund has analyzed more than 1,800 startups and invested in six of different sectors: civil construction, real estate, Industry 4.0, energy and waste management.

In addition to the fund, the company also has an open innovation laboratory for the steel industry, Açolab. Created six years ago and located in Belo Horizonte (MG), it has established more than 25 thousand connections, including startups, universities, investment funds, embassies, accelerators, innovation hubs, among other partners in Brazil and abroad. “Açolab coordinates open innovation processes, new business development and investment in startups, helping to co-create innovative solutions that generate value for the company and society”, says Carazolli.

I think, I just think, that now it’s clear how useful those acronyms from the periodic table in chemistry classes have been these days. Especially because this story of innovation with sustainability shines like the metal itself. So much so that investments in clean energy alone by strategic minerals, such as niobium and lithium, for example, are expected to total USD 17.2 billion by 2028. Do you know what that means? A lot. First, because it’s an increase of almost 90% compared to the period from 2023 to 2027. And second, because it only reaffirms the role of mining in the development of humanity. Mining is tech, and tech is pop, so there’s no way around it, mining will continue to be pop. After all, it’s been around since the beginning of the industrial revolution.

“Creativity is intelligence having fun”

Albert Einstein

3 Questions for…

Raul Jungmann

CEO of the Brazilian Mining Institute (IBRAM) since March 2022, he was Minister of State in four terms, in the portfolios of Land Policy (1996-1999), Agrarian Development (1999-2002), Defense (2016-2018) and Public Security (2018-2019). He was also a federal deputy for three terms and chaired the Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA).

(Photo: Publicity)

1) IBRAM states that its purpose is to mobilize the sector and involve government and society to build, together, the new mining. What are the bases and principles of this new mining?

IBRAM is committed to building a new mining industry based on principles of innovation, sustainability and social responsibility. This approach includes strengthening relationships between mining companies, their professionals, suppliers, government and society, promoting ongoing dialogue with various stakeholders. Innovation and the adoption of good practices are central to IBRAM, which encourages the dissemination of knowledge and the implementation of new technologies in the mining sector. The new mining industry advocated by the organization is aligned with the principles of sustainability and social responsibility, with a clear focus on ESG (environment, social responsibility and governance) practices in all operations. Ethics and transparency are fundamental values ​​for IBRAM, which seeks to maintain clear and honest relationships with all parties involved. The new mining industry approach is also inclusive and focused on socioeconomic development, promoting the participation of various stakeholders and engaging in initiatives that aim to improve the quality of life of communities.

2) On the current corporate agenda, items such as ESG and energy transition are among the most valued. What is IBRAM’s view on these issues and what has the sector done to advance these agendas?

IBRAM recognizes the growing importance of these issues for the mining sector and for society as a whole. They reflect the need for a more sustainable and responsible approach to mining, aligned with global and national expectations. The entity has promoted several initiatives to ensure that the practices of companies in the sector are aligned with ESG principles. In fact, the Institute and its associated mining companies have structured the ESG Agenda for Mining in Brazil, which guides sectoral actions, covering crucial areas such as operational safety, environmental impact, local development, diversity and innovation, among others. This document not only defines clear guidelines for industry practices, but also strengthens its global competitiveness by ensuring responsible and transparent operations. The mining sector’s commitment to the mining of the future not only aims to meet current demands, but also to build a legacy of trust and sustainable development for future generations. In relation to the energy transition, the mining sector plays a crucial role, since many of the minerals and metals extracted are essential for the implementation of clean energy technologies, such as electric vehicle batteries and renewable energy systems. IBRAM has been working to publicize this issue, which is so fundamental to the development of Brazil and the world.

3) The transition to low-carbon economies and technological development requires critical minerals. In IBRAM’s assessment, what are the challenges and opportunities for Brazil in this context?

The energy transition is a passport to the future that Brazil cannot afford to miss. There is no possibility of a transition to a low-carbon economy without the so-called ‘critical minerals’, such as lithium, niobium, rare earths, copper, tantalum, among others. These minerals are inputs for developing technologies and equipment aimed at the energy transition. Brazil has a window of opportunity in this area, and this favors an environment of investment and financing for mineral research. However, regulatory obstacles in the environmental, tax and fiscal areas for mining require more comprehensive actions, such as the reduction of bureaucracy in licensing, the production and dissemination of quality geological information, tax compensation for risky investments in exploration and production, and incentives for entrepreneurship in the sector, among others.