A recent analysis highlights a troubling trend in Brazil’s mining sector, where high corporate profits stand in stark contrast to low local development and widespread impoverishment. The report states that while mining companies accumulate massive wealth, they often transfer profits to tax havens, leaving behind a trail of environmental damage and human tragedies. This has contributed to a negative public image of the industry, both in Brazil and globally.
The negative impacts on communities near mining operations are severe, including strained infrastructure, a lack of basic sanitation, water pollution, and even the use of child labor. The report argues that mineral extraction, which should be a source of national development, instead leaves communities poorer and state governments in debt.
The analysis also points to financial maneuvers used by mining companies, such as undervaluing mineral exports through subsidiaries in tax havens to avoid paying billions in corporate taxes. For example, a study cited in the report found that between 2009 and 2015, Brazilian mining companies failed to pay an estimated $12.5 billion in corporate taxes. These findings challenge the narrative that mining is a net positive for Brazil’s economic development.
Sources:
O Globo: Estudo aponta discrepância entre lucros da mineração e desenvolvimento local
Folha de S.Paulo: Mineração no Brasil e os desafios da distribuição de riqueza
