Brazil looking to boost niobium production chain

The Brazilian government has created a program to strengthen the domestic niobium production chain, one of the key areas of the country's strategy to diversify the mining sector.

The program, which will be overseen by the ministry of science, technology and innovation, will integrate and support government actions to develop the production chain for the metal through the promotion of innovation in Brazilian industry. 

This is expected to boost the economy and increase market specialization, leading toward technological autonomy in high-tech sectors, the government said in the official gazette. 

Brazil hosts the vast majority of the world's niobium reserves, most of which are in Minas Gerais state. The grey metal is used particularly to make high-performance steel alloys and as a superconductor. 

Domestic company CBMM, controlled by the Moreira Salles family, which also owns a 33.5% stake in Brazil’s largest private sector bank Itaú Unibanco, supplies 82% of global niobium production.

Development of niobium has been a focus of President Jair Bolsonaro's administration, which thanks to Brazil's dominant position in its production, says that the versatile metal can be an important avenue for diversification of domestic mining, which is currently highly concentrated on iron ore.