Brazil Private Equity Firm Plans To Step Up Mining Acquisitions

Brazilian private equity firm Ore Investments seeks to acquire more assets using own cash, while is also planning to set up a new fund.

“We have already disbursed and committed 100mn reais (US$19.2mn), and we have another 200mn reais available to make new investments in the sector,” CEO Mauro Barros (pictured) told BNamericas.

“We have gold, copper, graphite, titanium, vanadium and lithium assets in our portfolio. We now want to increase [it] with more gold and copper, nickel, zinc and phosphate assets,” he added, underlining the company may conclude an investment in a new asset this year and plans to conclude up to six acquisitions in 2023.

Ore Investments was founded by former executives of Belo Sun, Vale and ArcelorMittal, among others.

To boost investments, the company also wants to launch a second fund.

“We are thinking about a second fund to be launched in 2024, with resources of between US$100mn and US$150mn. This second fund will be used to look at assets in other South American countries, such as Peru, Chile and Argentina, in addition to continuing to evaluate opportunities in Brazil,” said Barros.

According to the executive, Ore Investments is looking for early-stage and smaller assets in the construction phase.

Barros remains optimistic, despite increasing political risk in the mining sector.

“South America continues to be a very important region for global mining, with large volumes of reserves. Regardless of the government models we have in the countries across the region, this sector will continue to generate business opportunities,” added Barros.

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