State capacity and mineral development: a comparison between Bahia and Pernambuco in light of the Bahia Mineral Research Company (CBPM)

Abstract

Bahia and Pernambuco share the same legal framework for mining and belong to the same region, yet they present distinct trajectories in the development of their mineral sectors. While Bahia has an expanding mineral base, Pernambuco focuses heavily on gypsum mining. This article analyzes the extent to which this difference is related to state capacities directed toward mineral research. It focuses on the Companhia Baiana de Pesquisa Mineral (CBPM), the only remaining state-owned enterprise among its peers created in the country during the same decade, with no equivalent in Pernambuco. The research adopts a comparative case study approach, based on a most similar systems design and process tracing methodologies. It utilizes institutional documents, state legislation, and data from the National Mining Agency, the Geological Survey of Brazil, and the Observatory of Financial Compensation for Mineral Exploration. Results indicate that CBPM contributes to reducing exploratory risk by producing geological knowledge, structuring mineral opportunities, and transferring projects to the private sector through bidding processes, maintaining participation mechanisms in generated revenues. Findings suggest an association between this institutional capacity and Bahia's mineral diversification, although it does not solely explain the differences. Finally, institutional alternatives to strengthen mineral research in Pernambuco are also discussed.