The wheels of government seem to turn slowly in almost every country, but some would say that Brazil’s takes the cake. After changes to Brazilian mining industry codes were first announced in 2009, some companies delayed the start of projects, others rushed to lock in projects before the codes changed, while other companies decided to avoid working in the country completely until the dust settled (Reuters). After all, they thought it wise to wait and see how the economic landscape would be affected by the proposed changes before making commitments.
Now, five years later, amid talk of further delay, comes the news that the new protocols may be ditched entirely, making room for fresh concerns to rise to the surface of an already boiling stew of confusion:
It is not just lack of progress that has caused concern. A number of experts have issues with the code itself, saying it would kill exploration by squeezing out smaller players who often drive the discovery of new deposits (Daily Times).
Such uncertainty no doubt causes frustration to companies which are seeking to diversify, grow, and change with the times–difficult to accomplish when it is not entirely certain what changes are in the wind, or, indeed, if changes are in the wind at all.
Although the Brazilian mining industry is not the only sector of the global economy finding itself caught in a net of governmental drama, it is certainly a situation to watch. Perhaps we may be able to glean helpful insights from watching the way in which it all plays out.
Remember that we carry a full complement of OTR tires for all of your mining needs, whether you are in Brazil, elsewhere in South America or anywhere else in the world. If you need mining equipment tires, we can got them and can get them to your site fast. Feel free to contact us with questions or comments or to ask about this week’s deals.
Image credit: Wikimedia Commons