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The UK must re-evaluate its national mineral resources to capitalize on the growing critical minerals sector, according to Dr Kathryn Goodenough, principal geologist and international lead at the British Geological Survey.
At a seminar on critical minerals, hosted by the UK Department for Business & Trade and the Embassy of Brazil in London on October 3, Goodenough emphasized that Brazil’s progress in this area could inform the UK’s policies.
“It seems to be widely perceived that we no longer engage in mining in the UK [and] that the UK’s mining history is over,” Goodenough said. “Instead, we [should] focus on finance and perhaps train some individuals who then go overseas.”
In recent years, Brazil has been emphasizing mining as a vital part of its economy, creating job opportunities and making substantial progress, according to speakers at the seminar.
“The UK still has a mining heritage,” Goodenough said, pointing to the need for updated assessments to identify potential untapped resources in the country.
“Although we train people – perhaps fewer than we used to – we still don’t adequately discuss the importance of mining and mineral resources in this country,” she said. “While it’s important to have international partnerships with various countries that are producing critical minerals, we should also focus more on our own resources.”
The UK possesses some capabilities in the critical minerals sector across the mining lifecycle, including low-carbon solutions. London already serves as a global mining finance and trading hub, and is home to the London Metal Exchange, the world center for industrial metals trading.
Last year, the UK government unveiled its first-ever Critical Minerals Strategy, outlining a comprehensive approach to securing the UK’s supply of critical minerals.
The strategy will adopt a three-pronged “ACE” approach:
Under the “Accelerate” pillar, the UK intends to maximize domestic production where economically viable and environmentally sustainable. The strategy also emphasizes rebuilding skills in mining and minerals, proposing investments in research and development to solve challenges in critical minerals supply chains.
The country’s mining heritage is evident in Cornwall, in the south-west of England, which hosts a growing mining cluster of more than 110 companies. Two of these, Cornish Lithium and British Lithium, were already developing projects to produce lithium salts in the region.
Meanwhile, Pensana was developing a rare earth processing facility at the Humber Freeport, and Peak Resources was planning a similar facility at the Teesside Freeport, both in north-east England.
These projects aligned with the UK government’s broader investment in green industries. In 2020, it committed £12 billion ($15.7 billion) as part of its Ten Point Plan to support green jobs and transition to net-zero carbon emissions by 2050.
The recent £25 million investment by UK Research & Innovation (UKRI) in green industry centers, including £4.5 million for the University of Exeter to accelerate critical minerals mining, further demonstrated the UK’s commitment to developing its domestic capabilities.
Brazil has long been recognized for its significant mineral resources, particularly in critical minerals. “For instance,” Goodenough said, “Brazil is the world’s leading producer of niobium, which dominates that sector.”
According to Goodenough, Brazil has various other elements with considerable potential. “When discussing battery raw materials, Brazil stands out as a producer of nickel and graphite, being one of the largest producers globally,” she said.
Brazil has a diverse portfolio of resources essential for the global energy transition. The country dominates the niobium market and is rapidly expanding its presence in the production of lithium, graphite and rare earth elements (REE).
According to Olivier Masson, Fastmarkets’ nickel analyst, Brazil produced only 2% of global refined production in 2023. But that supply was equivalent to 18% of global ferronickel supply, excluding nickel pig iron.
Ferronickel, it should be noted, is primarily used in the stainless-steel sector and is not suitable for battery production.
Brazil is currently the fourth-largest producer of natural graphite in the world, accounting for approximately 3% of global production. But its output of 30,000 tonnes in 2023 was significantly lower than those of China (800,000 tonnes), Mozambique (100,000 tonnes) and Madagascar (79,000 tonnes), limiting its role in international graphite markets.
According to the Geological Survey of Brazil, Brazil’s graphite production still needs to be improved, and there is room for growth in the industry. The Brazilian government has shown interest in developing the country’s graphite production, and investment in the sector was expected to increase in the coming years.
At present, around 50% of Brazil’s graphite production is consumed in the domestic market, primarily by traditional sectors such as the steel industry, lubricants, and others.
The country has limited exposure to the rapidly growing lithium-ion battery sector.
Fastmarkets data analyst Georgi Georgiev expected Brazil to play a more significant role in battery raw materials supply chains for graphite in the Americas in the coming years. He added that the shift would be driven by two key factors.
First is the Inflation Reduction Act (IRA) regulations in the US, which will incentivize the sourcing of critical minerals, including graphite, from countries with free trade agreements with the US.
While Brazil currently does not have an FTA with the US, discussions were being held about potential trade agreements that could benefit Brazil’s graphite industry in the future.
The second key factor is new graphite projects coming online in Brazil, such as the Santa Cruz mine. This project, being developed by South Star Battery Metals, was expected to produce 12,000 tonnes per year of graphite when it reaches full capacity, which should be this year.
Given these developments, Fastmarkets’ data analysts project that Brazil’s graphite production could exceed 56,000 tpy by 2028, potentially raising its global market share to 2.7%. This growth could position Brazil as a key supplier of graphite for the expanding electric vehicle (EV) battery market in both North and South America, especially if trade agreements with the US are established.
Fastmarkets launched a monthly price assessment for graphite flake, 94% C, -100 mesh, cif US ports, on October 3 this year, reflecting the growing interest in US graphite pricing.
Another panelist at the London seminar, Rafael Bittar, vice-president at iron ore and nickel producer Vale, discussed the Brazilian multinational’s efforts to implement new technologies.
Bittar mentioned Vale’s recent technology investments, including the use of robotics to eliminate upstream tailings facilities, and the use of artificial intelligence (AI) to improve production efficiency and reduce resource consumption.
“We need to have roadmaps for zero-residue, carbon neutrality, and circularity in mining operations,” Bittar said.
The panel discussion highlighted that successful mineral resource development must go beyond extraction. It will require a comprehensive approach encompassing sustainable practices, community engagement and technological innovation.
Ligia Pinto from Sigma Lithium pointed to that company’s commitment to sustainable operations in Brazil.
“We operate with zero toxic chemicals use, zero carbon emissions, and zero tailings dams,” Pinto said, emphasizing the importance of long-term sustainability over short-term profits.
Pinto also detailed Sigma’s micro-credit program for women in local communities, which has already reached 2,000 women and was hoped to support 10,000 within two years.
But it was worth noting that, for some critical minerals such as rare earth elements, Brazil’s current production was still relatively low despite its significant reserves. This indicated that the country had yet to fully capitalize on its potential in this sector.
Last year, Brazilian mining association IBRAM signed a cooperation agreement with the British government mission in Brazil and with Mining Hub, a local industry innovation initiative. The intention was to finish a new inventory of sectoral greenhouse gas (GHG) emissions and to develop a decarbonization roadmap.
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