UAE Invests $2.5 Billion in Brazil’s Mining Sector

The United Arab Emirates is investing $2.5 billion to explore strategic minerals in Brazil that are considered essential for the energy transition. The memorandum of understanding was signed by the two countries on Friday, January 10 (in Europe on Saturday, January 11). The partnership aims to stimulate exploration, mining, processing, refining, and marketing projects, as well as technology transfer from the United Arab Emirates to the Brazilian mining sector.

Brazil’s exports to the United Arab Emirates increased significantly between 2023 and 2024. Last year, Brazil’s exports to the United Arab Emirates reached US$4.5 billion, up 43.5% from the previous year’s results. “The new agreement provides for a stronger and more diversified economic relationship between Brazil and the United Arab Emirates. In addition, the agreement promotes the development of innovative technologies in Brazil’s mining and energy sector and, as a result, enhances the competitiveness of the mining sector in this Latin American country, especially for small and medium-sized enterprises, contributing to a more sustainable and integrated future at a global level,” said after the signing of the agreement, Brazil’s Minister of Mines, Alexandre Silveira (pictured), who had earlier received the CEO of Abu Dhabi National Oil Company (ADNOC), Khaled Salmeen, to discuss the company’s investment opportunities in fertilizer and gas sectors of this South American country.

During the talks, Silveira emphasized that ADNOC is becoming a potential strategic investor for Brazil. The Emirati energy giant is set to participate in a natural gas auction to be held in Brazil in mid-2025, which is currently being planned by Brazil’s state-owned oil and gas company Pré-Sal Petróleo (PPSA). The meeting also addressed the possibility of ADNOC investing in fertilizer production in Brazil, a key sector of the national agri-food industry. Silveira emphasiezd that the country is trying to reduce its dependence on fertilizer imports by increasingly relying on international investment to expand the sector. “With its expertise in the energy and refining sectors, ADNOC can be a strategic partner in expanding Brazil’s fertilizer production capacity, responding to growing domestic demand and the country’s role in the global food market,” the Brazilian minister concluded.