Portugal bets on mining sector to fight recession

The debt crisis that hits Europe over the past few years forced many countries to seek for another ways to develop economics. One of the most affected nations is Portugal, which is now turning eyes into the mining sector to be back on track. Mining giant Rio Tinto and the Portuguese government are currently putting the finishing touches on an experimental concession contract to mine iron ore in the north of the country in an investment that could be worth over US$ 1.3 billion.

“With the strategy we have been pursuing for the mining sector, Portugal's resources and its potential could rise up to twice current gross domestic product, which is to say more than 200 billion euros (roughly US$ 250 billion)”, said Ricardo Pinto, a mining advisor at the Ministry of Economy, estimating the value of all possible future mining projects.

Portugal has granted 30 new mining leases since last year, which should add about US$ 400 million in initial investments. About half of the concessions are at the prospecting stage, but many are expected to lead to production soon, drawing potentially much bigger investments. Projects include gold deposits in the Alentejo region, copper in the south and tungsten and iron ore in the northern portion of the country.