Brazil to decide by mid-year whether to complete Angra 3 nuclear project

Brazil's government expects to decide by mid-year ​whether to resume construction of the long-delayed Angra 3 nuclear ​power plant or abandon it more than 40 ‌years ​after work began, the country's Management Minister Esther Dweck said on Thursday.

Dweck, who oversees the governance of federal state-run companies, told Reuters that the debate remains open but warned that cancelling the ‌project could undermine Brazil's broader nuclear power strategy. "The cost of not continuing is very close to the cost of continuing," she said, adding that the government will start talks with the new private shareholders in state-controlled Eletronuclear, which owns Angra 3, before a final decision.

J&F, the holding company ‌controlled by the Batista brothers and the owner of meatpacker JBS, agreed in October to acquire a stake in Eletronuclear from ‌Axia Energia, which was formerly Eletrobras. Brazilian development bank BNDES estimated in November the remaining investment required to complete Angra 3 at 24 billion reais ($4.65 billion), while it would cost between 22 billion and 26 billion reais to abandon it.

This estimate would include contract terminations, site demobilization, repayment of tax incentives and penalties linked to subsidized financing of ⁠the ​proposed plant at the multi-unit site located ⁠in the coastal town of Angra dos Reis. Construction of the nuclear plant began in the 1980s but has faced multiple stoppages due to funding shortages and ⁠a 2015 corruption probe. An attempt to revive it in 2022 faltered.

Dweck also highlighted the wider strategic importance of nuclear capabilities, noting that only China, ​the United States, Russia and Brazil have mastered the full uranium fuel cycle. However, Brazil is the only one using it ⁠exclusively for non-military purposes, she added.

President Luiz Inacio Lula da Silva's government is divided over Angra 3, with the final decision resting with Brazil's National Energy Policy Council (CNPE). The finance ⁠ministry ​says power produced by Angra 3 would be costly, while the mines and energy ministry says it would add reliable, low-carbon supply which is aligned with Brazil's energy transition goals.

POSTAL SERVICES Dweck also said the government is awaiting progress on a recovery plan at state-run ⁠postal operator Correios before deciding on a capital injection of up to 6 billion reais, which could be disbursed this year, in 2027, ⁠or split across both.

Correios recently ⁠raised 12 billion reais in Treasury-backed loans and is undergoing a restructuring that includes layoffs, unit closures, asset sales, and new partnerships. Dweck also said the group is in talks with state-owned bank Caixa Economica ‌Federal and private ‌banks to expand financial services and diversify revenue. ($1 = 5.1664 reais)