en.Wedoany.com Reported - U.S. companies are targeting Brazilian mining assets as key acquisition targets.
Alcoa recently expanded its operations in Brazil by acquiring South32's bauxite, alumina, and aluminum assets in the country. The transaction includes South32's stake in Mineração Rio do Norte (MRN), Brazil's largest bauxite operation, as well as the Aluma complex, which houses an alumina refinery and an aluminum smelter. Currently, South32 holds a 33% stake in MRN, while Glencore and Rio Tinto hold 45% and 22%, respectively. At Aluma, Alcoa was already a partner with South32, and its stake will increase after the transaction is completed. In addition to Brazil, the acquisition also involves South32's assets in Australia and South Africa.
Two other recent agreements have also consolidated U.S. interests in Brazil. In April, USA Rare Earth announced a $2.8 billion acquisition of Serra Verde, which owns the Pela Ema rare earth mine and processing plant in Goiás state. Earlier this month, Largo Resources, Brazil's only vanadium producer, signed a contract to supply raw materials to the U.S. Department of Defense. The world's largest primary vanadium producer announced it had secured an indefinite-delivery/indefinite-quantity (IDIQ) contract from the DLA Strategic Materials division of the U.S. Defense Logistics Agency to supply up to 2,876 tons of high-purity vanadium pentoxide (V2O3) for national defense reserves. The contract has a five-year term, with fixed-price delivery orders totaling up to $125 million. Largo's vanadium is produced at the Maracás Menchen mine and its chemical plant in Bahia state.
The recent agreements highlight the urgency for the U.S. to secure supplies of critical minerals and reduce foreign dependence, which benefits companies with projects in Brazil. Atlas Lithium, a Nasdaq-listed company, has a nearly $60 million lithium project in Minas Gerais state. The company's CEO and Chairman, Marc Fogassa, stated that some companies, including his own, have attracted interest from U.S. investors but remain largely unknown to the public.
Despite the growing interest from North American players in Brazil, the two governments are experiencing a tense period. The U.S. government is considering reinstating tariffs on Brazilian exports based on an investigation by its Commerce Department, which accuses Brazil of unfair trade practices. Political analysts point out that Trump's attempt to reinstate previously imposed tariffs—many of which were later overturned by the U.S. Supreme Court—is the backdrop to the current dispute, along with the U.S. government's strategy of supporting right-wing candidates in Latin America. In October, Brazil will hold elections for president, governors, senators, and federal deputies.
