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THE BRAZILIAN MINING SECTOR. THUNDER BAY – TIMMINS – SUDBURY – NORTH BAY. Ministry of Economic Development and Trade (Ontario) Brazilian Commercial Trade Office In-Market Coordinator - Mr. Marcos José de Almeida Duarte. Products in Demand. Sector Overview. Production Data. - PowerPoint PPT Presentation
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Ministry of Economic Development and Trade (Ontario)Brazilian Commercial Trade OfficeIn-Market Coordinator - Mr. Marcos José de Almeida Duarte
THE BRAZILIAN MINING SECTORTHUNDER BAY – TIMMINS – SUDBURY – NORTH BAY
Sector Overview
Production Data
Perspectives & Investments
Products in Demand
How We Can Help
BRAZILIAN OVERVIEWBRAZILIAN OVERVIEWArea: 8.5 million km² - 5th largest country (area) in the world.
Inhabitants: 185.7 million (est. 2010)
Brazilian is divided into five regions (26 states and the federal district)
Key Cities: São Paulo, Rio de Janeiro, Salvador, Belo Horizonte, Porto Alegre, Fortaleza, Recife and Brasília.
Official language: Portuguese
Currency: Real (R$)
Exchange rate: 1 CAD = 1.71 R$ (November 11th, 2010)
Chief of State: President Luiz Inácio Lula da Silva (until Dec. 2010)
Source: IBGE
BRAZILIAN MINING SECTOR OVERVIEWBRAZILIAN MINING SECTOR OVERVIEW
Brazil is among the world’s largest mining producers, along with Australia, Chile, China, the USA, Canada, Russia and South Africa.
In percentages of the world’s production, this represents:
# 1 Niobium producer, with 95%
# 2 Iron Ore producer, responsible for 17%;
# 2 Manganese producer, with 21%;
# 3 Bauxite, with 12,4%
# 3 Graphite producer, with 7,12%.
Source: IBRAM/DNPM
2009 Iron-ore Production
394 Million Tons
327 Million Tons
257 Million Tons
234 Million Tons
Mining companies: 73% are small-sized,
22.2% are medium-sized and
4.8% are large companies.
There are over 2,600 mines in Brazil.
Over 98% of these mines operate open
pit.
The states of Minas Gerais, Pará
and Goiás make up over 80% of
the mines.
Source: IBRAM/DNPM
Production: US$ 30 billionIncrease of 11% over 2007
Iron ore production increased 6%
MINING PRODUCTION DATAMINING PRODUCTION DATA
2008 2009
Production: US$ 25 billionDecrease of 17% over 2008
Mining Investments: US$ 5.2 billionDecrease of 10.2%
Iron 327Mt, Bauxite/Alumina 36.9Mt,Copper 217Kt, Manganese 1.7Mt,
and Koalin 2Mt
Although the Brazilian mining sectorwas affected by the 2008/09 international
economic crisis, the mining companies have been increasing investment in
order to recover
Bauxilie/Alumina 34 Mt, Manganese2.4Mt, Copper 222Kt and Kaolin 2.6Mt
Mining industry/mineral transformation:US$ 89.4 billion. It represented a 5.25%
share of the brazilian GDP
Source: MME/IBRAM/DNPM
INTERNATIONAL TRADEINTERNATIONAL TRADE
The commercial balance increased over seven times from 2001 to 2008. Production exported: US$ 22.8 billion; the positive balance reached US$
13.1 billion Main exported substances: iron ore (82,6%), ornamental stones (6,5%),
copper (6,2%), kaolin (2,4%), bauxite (1,9%) and others (1,35%)
1.75 1.78 1.95 2.41
5.32 6.51
8.62
13.1
02468
101214
2001 2002 2003 2004 2005 2006 2007 2008
Commercial Balance Total
*In Billion US Dollars
*
Source: AliceWeb (MDIC)/IBRAM
PERSPECTIVES & INVESTMENTSPERSPECTIVES & INVESTMENTS
It is estimated that between 2009 and 2013 Brazilian corporate investment in the mining sector will total US$ 62 billion; an average of US$ 12.4 billion per year.
Investments are planned to increase iron ore, bauxite, aluminum, copper, and gold extraction.
Production of iron ore and nickel are expected to rise sharply until 2013.
The amount of investments in the state of Minas Gerais exceeded 50% of what was invested the previous year.
Source: MME/IBRAM/Valor/PriceWaterHouseCoopers
PERSPECTIVES & INVESTMENTSPERSPECTIVES & INVESTMENTS
Due to the worldwide importance of the Lithium, Brazil estimates higher investment to increase the extraction of Lithium (1,3% of the world’s reserve).
Federal Investment: Plano Mineral 2030 intendsto double mineral production in 20 years, reaching
the amount of a billion tons of iron ore (150%above the volume that is now being produced)
Source: MME/IBRAM/Valor/PriceWaterHouseCoopers
PLANNED INVESTMENT BY MAIN PLANNED INVESTMENT BY MAIN COMPANIESCOMPANIES
Vale, the second largest mining company in the world plans on:
- Investing US$12.9 billion in 2010;- Investing US$24 billion in 2011;- Duplicating its production in 5 years;- Working on 18 different projects between 2010-
2012;- All investments aim at improving equipment, rail
roads, loading/transportantion and water capturing.
*Vale looks at developing contact with new international supliers.
Source: Vale/IBRAM/Valor
PLANNED INVESTMENT BY MAIN PLANNED INVESTMENT BY MAIN COMPANIESCOMPANIES
CSN(Companhia Siderurgica Nacional): - Increase production to 40Mt/year (Mine Casa de Pedra)
SAMARCO - Duplication of pellet production
MMX - Increase mining production capacity to 46Mt per year
ALUNORTE- Grow production capacity from 4,4Mt
to 6,3Mt of Aluminum per year
Source: Valor/Vale/MMX/Alunorte/IBRAM
PRODUCTS ON DEMANDPRODUCTS ON DEMAND
Earth-movers
Belt Conveyors
Crushers/Grinders
Laboratory instruments
Drill pieces
Carriers/loaders
Management and controlling Software
Security devices
Source: IBRAM/Vale
MAIN MINING COMPANIESMAIN MINING COMPANIES
CANADIAN MINING COMPANIES IN CANADIAN MINING COMPANIES IN BRAZILBRAZIL
PLANNED TRADE SHOWS (2011-PLANNED TRADE SHOWS (2011-2012)2012)
EXPOSIBRAM (2011) – Belo Horizonte *The most important
M&T Expo (2012) - International Trade Show of Construction and Mining Equipment
Sul Metal e Mineração (2012)
CBMina (2012) – Congress of Open Pit and Underground Mining
Equipo Mining (2012)
Certifications &Regulatory Issues
Analyze the competitors
Understandthe product and
the market
Importance offinding a
partner in the local market
Establish partnerships and local customers
How to doBusiness in
Brazil
HOW WE CAN HELPHOW WE CAN HELP
Market Analysis
Partner Search
Contacts with local companies
Preparation of an agenda of meetings
Follow-up contacts
REFERENCESREFERENCES
IBRAM (Brazilian Mining Institute) DNPM (National Department of Mineral Production) MME (Ministry of Mines and Energy) Valor (Business Publication) IPEA (Brazilian Institute of Applicable Economic Research) MDIC (Ministry of Development Industry and Trade) AliceWeb PriceWaterHouseCoopers
THANK YOUTHANK YOU
Ontario Ministry of Economic Development and TradeBrazilian Commercial Trade Office
Porto Alegre / São Paulo / Rio de JaneiroPhone: +55 (51) 3212-6612 or 3227-8341
mj.mj@terra.com.br or marcos.jose@plugin.com.br
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