Economy

Known for sun and sand, Bahia boasts booming mining industry

Mineral production in Bahia rose 62 percent last year, providing much-needed wealth to the state's poor and semi-arid interior region

Known for sun and sand, Bahia boasts booming mining industry
Underground mine in Bahia: 105 kilometers of galleries. Photo: Mineração Caraíba S/A

For foreigners and the vast majority of Brazilians, the northeastern state of Bahia is synonymous with sun, sand, and partying. Indeed, the region’s beaches attract millions of holidaymakers every year, with tourism being responsible for 4 percent of the state’s BRL 300 billion (USD 55.84 billion) GDP. But, as soon as you begin to go inland, the economy of Bahia changes dramatically, focused mainly on agribusiness and mining.

The agricultural sector has been the backbone of the Bahia economy since colonial times. In the year 1500, Portuguese navigators first set foot in Brazil at Porto Seguro, the southern Bahia town now known for its beaches. After settling in the region, they soon began cultivating and exporting cacao, an industry that remains until today.

However, while farming has been an important business in Bahia for half a millennium, the presence of large-scale mining operations in the state is a much more recent phenomenon.

In 1842, there were reports of diamonds being discovered in Bahia. Later, during World War II, the state’s deposits of manganese and quartz gained significant importance as the country went to work producing raw materials for the war effort.

However, it was only at the end of the 1960s that large companies began setting up shop in Bahia to extract minerals using advanced techniques. After much research, mining in the state began gaining nationwide importance in the 2000s.

Bahia is rich in iron, nickel, gold, bauxite, and another 48 minerals. Today, it is the country’s fourth-largest state in terms of mineral production, behind Minas...

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