Appian Capital betting big on Brazil's mining potential

European investment fund Appian Capital is interested in developing more mining projects in Brazil to supply the global energy transition. The firm is focused on copper, nickel and lithium, among other minerals.

Appian recently announced an investment of 350 million reais (US$65mn) in the Boa Sorte graphite project in Bahia state, but that amount could rise to 1.5 billion reais.

Paulo Castellari, Appian country manager, talks with BNamericas about the plans for the graphite project, interest in other segments and his views on the business environment in mining.

BNamericas: What motivated Appian to invest in graphite mining in Brazil?

Castellari: The motivation to invest in graphite production was due to the intersection of some factors.

First, graphite is critical for the energy transition, as the mineral represents 95% of the composition of electric vehicle battery anodes, totaling 68kg of graphite for each battery.

Furthermore, Brazil has around 26% of the world's reserves of the mineral, and Graphcoa is located in a famous graphite belt – Bahia-Minas Gerais states – considered a leader in the high-purity graphite market segment.

BNamericas: Which factors will determine whether the initial investment will rise?

Castellari: In early 2025, we will work together with our customers to evaluate the quality of the product processed in the demonstration plant, in order to define the potential of the plant's production scale to build the project at its final size.

Therefore, the determining factors for the company to decide to expand the plant are discussions with our customers, understanding the market potential, as well as our ability to explore new markets, including downstream opportunities.

BNamericas: What is Appian's current portfolio in Brazil?

Castellari: We have Mineração Vale Verde, an asset that produces around 20,000t/y of copper concentrate in Alagoas, the first base metals company in the state.

We also have Atlantic Nickel, an asset that produces around 15,000t/y of nickel concentrate in southern Bahia, one of the largest open-pit nickel sulfide mines in the world.

And we have Graphcoa, a project under construction that will produce graphite, with the potential to be the largest producer of the mineral in Brazil.

In addition, we have Omnigen Energy, an active asset that is developing solar energy plants, with the potential to provide clean energy for the other assets in the portfolio.

BNamericas: Is the company eyeing investments in other mining segments in Brazil? 

Castellari: Under Appian’s business model, a private investment fund specializing in mining, the group is constantly seeking new investment opportunities in Brazil, as the country has favorable jurisdiction, adequate infrastructure and high-quality potential of strategic minerals. 

Furthermore, the Appian Group has technical expertise, bringing together more than 300 years of experience in its technical staff, as well as extensive knowledge of the mineral sector in Brazil.

With the ambition to invest in minerals essential for the energy transition, Appian's expansion plan is focused on opportunities to develop mineral projects focused on copper, nickel, lithium, cobalt, graphite, manganese, and others in different regions of the country.

BNamericas: Are there plans to renew this company’s portfolio? Or to sell some of the Brazilian assets? 

Castellari: As part of the Appian Group's business model, the company is always looking for investment and divestment opportunities, so it remains open to potential investors.

However, there is no forecast for divestments, so they will be done at the ideal time for operations, aiming to continue business in a safe and responsible manner, valuing our commitment to delivering value to our investors.

BNamericas: How do you see the business environment in the mining sector in Brazil? What are the main risks and opportunities?

Castellari: Brazil is very well positioned regarding critical minerals for the energy transition, having a relevant share of global reserves. 

For example, the country has more than 50 assets with a strategic mineral as a primary product – copper, nickel, graphite, lithium and manganese. 

Furthermore, as mentioned, it's also an attractive location for investments in mineral assets, given the political and economic stability, jurisdiction, infrastructure, logistics and energy mix.

A challenge that the Brazilian mineral sector still faces is attracting and retaining talent, especially younger ones. This often happens due to the fact that people aren't aware of mining and of the sector’s transformative potential, making the industry seem unattractive. 

I believe that Appian has been playing an important role by showing the real value of mining through an authentic and transparent communications process, showing how the sector can transform lives. We can change this reality, building an increasingly diverse workforce.