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Now is a Perfect Time to Invest in Latin American Mining | Factsherald


The Latin American mining sector has been on the rise for years with global commodity prices increasing, with foreign investors from all over the world entering the market to utilize its vast natural resources and low-cost labor market.

Latin American Mining
Latin American Mining: Image Source

In 2019, the sector is expected to build upon its positive trend, with markets including Brazil selling mining regions to raise capital, boost jobs and boost FDI.

Below is an outline of the Latin American mining industry in 2019 and beyond, and we provide advice to businesspeople and mining companies willing to enter into the industry.

Mining Areas Up For Grabs

In December 2018, Brazil announced that it would auction around 20,000 mining exploration areas in 2019. Following the stalled processes allowing Brazil’s government has taken back sites and will sell mining permits to new areas and permits to international companies to explore them and use their resources.

A new state agency, called the National Mining Agency, has also been launched in order to promote greater autonomy. The set involves a rise in the country’s mining royalties and modifications to the country’s mining law.

Significant metal deposits and exports in Brazil, Brazil is now one of the largest metals producers worldwide, including gold, aluminum, iron ear, and nickel. It compromises about 7 half of its GDP with more than 8,000 businesses in the nation fighting for resource and export agreements with producers.

Several companies dominate its mining industry, with 80% of total mining sales by Vale, and with trillions in annual sales by Namisa, the second largest company in the country, which is owned by Companhia Siderurgica Nacional (CSN) and Japan.

For entering the market, companies of all shapes and sizes can flourish and benefit from their mining resources, infrastructure, and talent. Although elevated competitiveness and fluctuating mineral rates can pose a danger, companies with the correct assets and policies expect important long-term profitability.

Governments Generating Opportunities

The new president of Mexico Andres Manuel López Obrador (AMLO), when chosen in 2018, vocalized his ambition for the country’s natural resources to be nationalized. The excellent news, however, is that he withdrew certain claims since he noted intentions not to increase national mining taxes, giving miners a comfort breath in the nation and reasons that their interest in the nation could be increased. Other firms will also be encouraged to enter the nation.

However, challenges remain in countries such as Mexico, with security risks one of the major concerns in the mining sector. Extortion, harassment, abduction, and theft are common in the country and damage to mining companies for millions of dollars. As an entrepreneur, it is essential to understand the issues and implement safety characteristics to decrease the danger of such events in your facilities.

Illegal mining crackdowns

In 2018, in the village of Tarapacá and town of Leticia, the Colombian Army illegally demolished mining areas across the nation. The Government has attempted to combat illegal gold mining and guarantee that only certified experts can remove gold and metals from your territory as a major cause of deforestation in the country. This is a great opportunity for shareholders because it provides connections to mining locations and enhanced demands for performance metals and long term agreements to remove unlawful mining organizations.

One month after removing various illegal locations, a Colombian tribunal instructed the Government in the nation to cancel further mining permits until they were prepared to set up safe zones on economic grounds. The prohibition of new licenses will certainly cause headache in the country with huge reserves of coal, gold, emeralds, and nickel, and as an entrepreneur, this could cause challenges if you decide to enter the country in 2019. It allows meaning, as always, to comprehend the circumstances under which your licenses will be granted in your selected Latin American nation and protect them from opening and showing.

One alternative is to accept the Peru Mining Licensing System, which enables owners at their allocated locations to create mineral discovery and processing, transportation and operate with those products when they are processed.

Wider Market Opportunities

There are also other possibilities for industry consideration and for the extraction of precious metals into the Latin American mining industry. Of course, those that decide to extract are often the foremen in their niche, but the investment of large multinational companies, which have money to spend on improving efficiency, will enable small and medium-sized enterprises.

There are a whole host of new opportunities in the Peruvian mining sector for companies, for example, that provide mining equipment, technology, and services that can support extraction. Although these companies do not participate in the mining process, larger firms use their products and services and help them to grow in the sector.

Manufacturing, recruitment, sales, marketing, logistics, and import and export companies were also sectors that Latin American mining industries could benefit from in 2019. It’s important to detect a price divide and take advantage of powerful business circumstances and small raw materials costs.


While mining in Latin America is very good–what do the mining firms believe? The BNamericas Mining Readers Survey of 2013 revealed that 44.4 percent of participants regarded Chile as the highest business nation in South American mining. In return, Peru (22.2%), Brazil (14.8%) and Colombia (7.4%) pursued Chile. 12 months forward to 2014 and a few changes occur. Peru viewed Peru as the country in which most participants think the business climate will increase, overtaking Colombia. Chile was the greatest, but definitely more brittle.

So what about Latin America’s mining next?

One of the biggest problems will remain to be infrastructure and the need for significant growth in the coming years. Willis, the world’s major threat consultative organization. That claims Latin America will have to spend around 9% of its GDP each year in facilities by 2020. To overcome the competition with South-East Asia.

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