Mining companies plan to invest in increasing gold production in Brazil

21 November 2011

Sao Paulo, Brazil, 23 Nov – Private mining companies in Brazil plan to invest US$2.4 billion in gold mining over the net four years, Brazilian daily newspaper O Globo reported Sunday citing official figures.

This investment increases previously outlined investment three-fold and may contribute to doubling gold production in Brazil, which is currently around 62 tons per year.

This figure makes Brazil the 23rd biggest gold producer, far below the top producers such as China (341 tons of gold), Australia (259 tons), the United states (240 tons) and South Africa (192 tons).

The National Mining Production Department has granted 1,270 gold mining licenses and is analysing another 1,173 requests, according to the daily newspaper, which said the increase was a “new gold rush.”

There are currently 2,819 legal mines in Brazil, according to O Globo, although most of the country’s production is focused on the few mines controlled by foreign companies.

Brazil’s biggest gold mine is located in Paracutú (Minas Gerais), in central Brazil and is owned by Canadian company Kinross.

Brazil only uses 12 percent of its production capacity, which could reach 503 tons of gold per year, given the country’s proven reserves. (macauhub)