Brazil's Minas Gerais eyes over US$5bn in lithium projects

Brazil’s Minas Gerais state aims to attract up to 30 billion reais (US$5.6bn) in investments to the lithium-rich Vale do Jequitinhonha area.

Also called the Lithium Valley, the area is home to 14 localities and hosts the country’s largest lithium reserves, although it historically lacks development.

Sigma Lithium and Companhia Brasileira de Lítio (CBL) have operations in the area, while Atlas Lithium, Lithium Ionic and Latin Resources are also active.

Governor Romeu Zema’s administration has mapped municipalities that offer potential for projects and is developing policies and incentives to attract the private sector.

"There are more than 10,000 direct and indirect jobs generated, an increase in income for the local population, investments of more than 5.5bn reais, which are expected to rise to 20-30bn reais by 2030, as well as improvements in infrastructure, such as the progress of road works, which directly and indirectly benefit thousands of people in the region," a press release said.

Between June 17 and 21, officials will hold public hearings in the valley to gather input on the industry’s impacts and suggestions for sustainable lithium development.

"The task of the state is not so simple. The Lithium Valley is a region that still needs a lot of infrastructure improvements, and at the same time a lot of dialogue with the population and the mayors of this region is needed to make progress because such works affect the lives of these people," Valdir Farias, CEO of mining consultancy Fioito, told BNamericas.

Another challenge is labor.

"The level of professional qualification in the region is low, and it is difficult to bring qualified professionals from other locations there, which is a region of low economic development," an executive of a lithium company operating in the area told BNamericas on condition of anonymity.

"It will be necessary for governments to help in the professional development of people in that region, through technical education," the executive said.