OPENING: Brazil has a monopoly on its own uranium, but it cannot produce enough fuel for its two nuclear reactors. Now the government wants to open the door to private companies. The catch: the state-owned firm must keep at least a 20% slice of every mining project. That rule could unlock new supplies just as global demand for nuclear power is rising.
Brazil currently relies on imported enriched uranium to power its Angra 1 and Angra 2 reactors, even though the country holds about 3% of the world's known uranium reserves. Domestic production is limited by INB's lack of capital and technical capacity. By inviting private partners to shoulder investment costs, Brazil hopes to reduce its import dependence and eventually export surplus nuclear fuel.
Brazil's sole uranium mine, located in Caetite, Bahia, currently produces around 400 metric tons of uranium concentrate annually, far below the country's potential. The lack of investment has left the facility operating below capacity, while the state-owned INB struggles to fund exploration of new deposits. Opening the sector to private companies could attract the capital needed to increase output and develop Brazil's significant uranium resources, which are the eighth-largest in the world.
Nations worldwide are prolonging the operation of older nuclear plants and constructing new reactors to satisfy increasing power needs and climate objectives.
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During a May interview, Tomás Albuquerque Figueiredo, president of INB, stated, "Global uranium output fell short of demand last year." He added, "With production from existing mines declining, new mines will be essential to supply the roughly 70 reactors expected to come online." To meet that future demand, INB wants to double its uranium concentrate production capacity at the Caetite facility.
Foreign firms have already contacted INB about possible partnerships. Interest has come from companies in China, France, Russia, and Canada, all eyeing the Brazilian uranium market. The draft rule would allow private companies to form joint projects with INB as long as the state firm keeps at least a 20% ownership in each venture.
INB President Figueiredo explained the logic: "The idea is to bring private partners in to share the risk with INB and prepare for future demand." Private partners would cover the project's investment costs. In exchange, private partners would get a majority share if the value of INB's contributed mining assets falls short of the funds required to develop the venture.
The rule is still a draft. Brazil's Mines and Energy Ministry and the Chief of Staff's Office are reviewing it. They may make changes before finalizing the rule. According to Special Secretary Roberto Garibe, officials are reviewing the proposed measures and anticipate a decision soon.
The draft rule also includes a 12-month reporting period. After the rule takes effect, anyone who currently holds mining rights must report any nuclear materials found on their land.
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