B3, Brazil’s stock exchange, and the Toronto Stock Exchange (TSX) have announced a strategic partnership aimed at boosting the presence of mining and mineral sector companies in the Brazilian capital markets. A memorandum of understanding (MOU) to this effect will be signed at B3’s headquarters, with a ceremonial bell-ringing to mark the beginning of this collaborative effort.
Over the next year, the exchanges will work together to engage key stakeholders, including companies, investors, and market agents, to explore viable pathways to attract new entrants to B3. The partnership will leverage TSX’s extensive expertise in mineral listings to help create a framework tailored to the Brazilian market. “We aim to develop this market in Brazil by capitalizing on the Toronto Stock Exchange’s experience,” said Leonardo Resende, Customer Relationship Superintendent at B3, who is leading the project.
Though the partnership’s specifics remain flexible, potential initiatives include dual listings and perhaps even establishing a new sector within B3 for mineral research and pre-operational companies. Resende noted that Brazil’s stock market currently lacks dedicated channels for early-stage mining companies, highlighting a gap that this partnership aims to fill. As B3 reflects on lessons learned from past market experiences, such as the collapse of the X Group led by Eike Batista, it emphasizes transparency and risk disclosure in attracting non-operational companies.
The mining sector’s demand for resources has grown, particularly for minerals critical to renewable energy and electric vehicle initiatives. TSX, a global leader in mining listings, already hosts 37 companies with projects in Brazil, underscoring its commitment to the region’s mineral potential. “Brazil holds a strategic position for TSX, particularly in the context of the energy transition, with over 270 mineral projects across Latin America, including 28 in Brazil,” noted Loui Anastasopoulos, CEO of TSX and part of the TMX Group.
Anastasopoulos emphasized that the partnership is complementary, not competitive, stating, “B3’s broad national and international investor base plays a pivotal role in the energy transition, while we bring deep experience with small-cap financing. Together, we’re investing for the long term.” He further highlighted that while IPOs may be limited globally, the Toronto Stock Exchange offers alternative funding vehicles, such as direct listings, which could serve as attractive options for Brazilian companies.
With this partnership, B3 and TSX seek to forge a collaborative path that benefits the Brazilian mineral sector, offering a platform that supports both established giants like Vale and emerging players in the renewable energy supply chain.
