Brazil Could Soon Let Private Companies Mine For Uranium
Brazil’s lower house has approved a constitutional amendment that will open up the country’s uranium sector to private participation. All activities related to the exploration and mining of commodities used in generating nuclear power are currently exclusively controlled by the state-run Indústrias Nucleares do Brasil (INB).
The amendment, which needs to be approved by the Senate by December 9 or it lapses, will allow INB to partner with private firms for uranium exploration and mining, as well as other uranium-related activities such as ore processing, enrichment and production, and the development of nuclear power technologies.
The move could unlock the nation’s potential to become the world’s next uranium powerhouse. Brazil has the world’s sixth-largest uranium reserves, but World Nuclear Association data shows that only a third of the country has been explored for the mineral due largely to the high cost of investment required.
The nation currently imports most of the uranium it needs to power Angra, its only nuclear plant. The plant has two active reactors, which produce about 3% of the South American nation’s electricity. The construction of a third reactor was resumed in November after being on pause for more than seven years.
Caetité, the country’s only operational uranium mine, which is located in Bahia, was also reopened in December 2020. Its new open pit, Engenho, is expected to produce enough for Brazil to be self-sufficient and to export yellowcake.
Information for this briefing was found via Mining.com, INB, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
