Brazilian Mining Code Changes Encourage Outside Involvement

Brazil is a country with continental dimensions. It hosts many different varieties of terranes and geological environments in its 8.5 million km2 (3.28 million sq miles). This mineral endowment has been important for the country's economic and social development process since the early colonial period, leaving Brazil with a legacy of almost 400 years of mining tradition. Mining in Brazil started in the early 17th century with diamond and gold discoveries. The made the country the leading producer of both for more than a century. This phase faded by the late 18th century when the alluvial deposits were depleted. It finally yielded to competing countries where technology and capital were being applied more efficiently. This period of mining dormancy lasted from the late 19th century until the first decades of the 20th century when Brazilian mining picked up. There was growing pressure on mineral resources by the affluence of the industrial society. The fast-growing demand resulting from the two world wars had brought the Brazilian mineral wealth back to the scene. This second Brazilian mineral boom made the country a leading producer of iron and manganese ore, quartz crystals and other strategic minerals. This expansion in Brazil's mining industry provided the basis for the country's industrialization process. This was led by the Brazilian steel and petroleum industries. Unfortunately, the thrust provided by this modern industrial basis was not properly used as a lever for further industrial development. The upstream industrialization process was not supported by the proper development of the raw materials supplying basis. The resulting industrial model was heavily dependent on imports of raw materials. It did not support the economic growth and faced fierce industrial competitiveness and sophistication that emerged with the postwar economic boom.