In the hills of the Carajas in South East Amazonia, in Brazil, there are huge deposits of high-grade iron and other minerals. The amount of iron found is the most that have ever been found in the world, an estimated 18 billion tonnes. To make the most of this huge and profitable resource, the government set up the 'Great Carajas Project' The project cost a huge amount of money.
A lot of the investment came from outside of Brazil. The 900km railway alone cost $2.5 billion, without the cost of all the mines and equipment needed for mining, the resources needed to sustain huge numbers of workers, n otherwise inhabited forests. The US and Japan loaned $2.5 billion to Brazil, the World Bank loaned $300 million and the ECSC (European coal and steel community) loaned $600 million. Bra
...zil is expected to benefit itself, the economy, and its people. The project is expected to pay back the loans and other foreign debts, which it has owed other countries for many years but has been unable to pay off. The project will provide a huge amount of employment, and a higher quality of living for many people.
This will also attract more businesses to the area such as shops etc. Industries producing products from iron and minerals will also be attracted to the area. This means that they will have to spend less money on importing expensive goods, which they can now produce in Brazil. They will also be able to export to other countries. Of course, the countries who have loaned money to Brazil will also benefit, have they have invested in a long-term, sound industry, which i
unlikely to go wrong.
But there are hidden costs as well. Not for the businessmen and the politicians, but for the Indians, and the forest itself. Vast amounts of trees are being cut down to supply huge charcoal ovens. Every time, new roads and railways are built, land has to be cleared of trees. This means that the Indians have to leave, and the workers move in, they bring with them, shops, and other services and industries needed o to sustain a community.
A Hydro-Electric Power Dam (at a cost of $5 billion) also destroyed a huge area of the forest, five times the size of the isle of white, when the forest was flooded. This was to provide electricity for a large amount of the Carajas project. Many people left their communities and villages behind after being re-housed.
- Commercial Bank essays
- Debit Card essays
- Deposit Account essays
- Subprime Lending essays
- Auction essays
- Balanced Scorecard essays
- Business Plans essays
- Expense essays
- Income essays
- Net Income essays
- Security Guard essays
- Singapore Airlines essays
- Battle essays
- Intranet essays
- Maintenance essays
- Simulation essays
- Inn essays
- Asset essays
- Depreciation essays
- Discounted Cash Flow essays
- Foreign Direct Investment essays
- Funds essays
- Internal Rate Of Return essays
- Revenue essays
- Day Trading essays
- Futures Trading essays
- Capital market essays
- Million essays
- Payment essays
- Rate Of Return essays
- Funding essays
- Hedge Fund essays
- Bank essays
- Banking essays
- Corporate Finance essays
- Credit Card essays
- Currency essays
- Debt essays
- Donation essays
- Enron Scandal essays
- Equity essays
- Financial Accounting essays
- Financial Crisis essays
- Financial News essays
- Financial Ratios essays
- Financial Services essays
- Forecasting essays
- Foreign Exchange Market essays
- Free Market essays
- Gold essays
