Gestora planeja fundos para a ‘nova corrida dos metais’: de PIPE a crédito

China's restriction on rare earth exports has sparked a structural change in the mining industry, triggering a global race for critical metal reserves. This scenario united Lazuli Partners, a private equity fund managed by former Gávea Piero Minardi associates Piero Minardi, Carlos de Barros, and Bruno Alves, with BinahResources, a company led by mining analyst Andrea Weinberg.

The two formed a joint venture named Lazuli Binah, aiming to raise funds to invest in mining assets in Latin America, primarily in Brazil, through private equity vehicles, PIPE (private investment in public equities) or credit.

The partners are assessing potential transactions worth between R$1.5 billion and R$2 billion in the next two to three years, but they believe the potential is much larger. Weinberg explained, "This market has entered a new dynamic, there has been a security national change. This is the name of the game now. What metals could be missing in the West? Basically everything that China sells today. That is what we are likely to invest in."

Weinberg cited examples such as the International Development Finance Corporation (DFC)'s US$2.5 billion plan to increase access to critical minerals for Americans, as well as recent transactions targeting Brazilian rare earth assets. South Korean giant Posco sealed a pre-arranged deal to purchase future production from a Meteoric Resources project in Minas Gerais, while the DFC signed an off-take agreement with a pioneering mine of Serra Verde in Goiás. Canadian-listed companies are advancing with projects in Brazil.

Lazuli Binah, which also brought a former Vale global geology and project director, Edson Ribeiro, to its team, has several potential deals in the pipeline, including upcoming IPOs. "Brazil has few growth options for the next government, and mining could be one of them. Today, this industry is 3%-5% of Brazil's GDP, and it could be like Chile, where it represents 15% of GDP," Weinberg said.

At least 30 Brazilian mining companies are listed abroad, and many others are interested in the country's metal reserves, ranging from rare earths to copper, bauxite, and vanadium. Australian companies, traditionally involved in the mining industry, see Brazil as a "blue ocean" for investments, especially because only 28% of the national territory has detailed geological mapping currently.

Weinberg, who previously worked as a metals and mining analyst at Goldman Sachs, Merrill Lynch, Blackrock, and BTG, adds that the only thing that could hinder Brazil in this race for metals is Brasília. The government's plan to create a National Policy for Critical Metals, being discussed in the Senate, has proposals that have been poorly received by the sector, such as submitting operations like mergers and acquisitions to approval by a council linked to the Presidency of the Republic.

The manager considers the current text "not good," but sees limited risks because the matter has already passed through the Chamber with few modifications compared to the original text aligned with the Planalto. "Worse than what it is now won't get any worse," she stated, expecting some regulation improvement during its analysis in the Senate.

"If it's on the right track, without creating TerraBras or anything like that, we indeed have a massive potential for the Brazilian mining industry to grow."