InformatIon and analyses eC on the BrazIlIan · PDF file · 2013-07-09on the BrazIlIan mIneral economy 7th edItIon ... D e C em B er 2012 ... Copper Silicon Kaolim Manganese Ore Bauxite

InformatIon and analyses on the BrazIlIan mIneral

economy

7th edItIonDecember 2012

shis ql 12 Conjunto 0 (zero) – Casa 4Cep: 71.630-205 – Brasília/DF

+ 55 61 3364-7272 / 3364-7200

[email protected] www.ibram.org.br

inFormation anD analyses on the Brazilian m

ineral eConomy – 7th eDition – DeCem

Ber 2012

Atenção: confirmar medida da lombada conforme o miolo impresso

IBRAM – HQSHIS QL 12 Conjunto 0 (zero) Casa 04 – Lago Sul – Brasília, DF, Brazil – CEP 71630-205Phone: +55 61 3364.7272 – Fax: +55 613364.7200 – E-mail: [email protected] – Web: www.ibram.org.br

IBRAM AMAzônIATravessa Rui Barbosa, 1536 – B. Nazaré – Belém, PA, Brazil – CEP 66035-220 Phone: +55 91 3230.4066 / Fax: +55 91 3349.4106 – E-mail: [email protected]

IBRAM MInAs GeRAIsRua Alagoas, 1270, 10º andar, sala 1001 – Ed. São Miguel, Belo Horizonte, MG, Brazil – CEP 30.130-160Fone: +55 31 3223.6751 – E-mail: [email protected]

PRess ADVIsORY Profissionais do Textowww.ptexto.com.br


economy

7th edItIon

Brazil 3aggregates 17Bauxite 20Kaolin 22Copper 24tin 29iron 32Fertilizers/

phosphate/potassium 38manganese 46niobium 48nickel 51Gold 55Uranium 58zinc 62

Introductioncontents

This is the 7th edition of “Information and Analyses on the Brazilian Mineral economy”, published by the Brazilian Mining Association – IBRAM.

It provides statistics and analysis on minerals, as well as consolidated information generated by the Mining Industry in Brazil.

each chapter discusses a different mineral asset. These are: Aggregates for Civil Construction, Bauxite, Kaolin, Copper, Tin, Iron, Fertilizers/Phos-phate/Potassium, Manganese, niobium, nickel, Gold, Uranium, and zinc. The chapter on Brazil covers the consolidated information on the domestic industry.

This report includes IBRAM’s latest economic information on Produc-tion, Mineral Reserves, Market Prices, Foreign Trade, Investments in Production, and Consumption of the Mineral Assets covered.

The report on Mineral Commodities in Brazil provides the following data:

• Brazil’stotalannualmineralproductiontraded;• rankingofmajorminerals(byvolumeandproduction);• mineralGDPgrowth;• foreigntradedata;• primarymineralexportsandimports;• totalCFEM(FinancialCompensationforMineralResources Exploitation)revenues;• variationsinthepriceofminerals,and• estimatedinvestmentsinthemineralsector.

The Information and Analyses on the Brazilian Mineral economy can be accessed through IBRAM’s portal – www.ibram.org.br – which is updated on an ongoing basis.

The Association intends to expand the portfolio of minerals in order to put together the most comprehensive database on the Mineral Industry, which will provide figures that illustrate the benefits provided by the Mineral Industry to the economy and welfare of Brazilian citizens.The Portuguese version of this

document – Informações e Análises da Economia Mineral Brasileira – is available from IBRAM’s website:

www.ibram.org.br

December 2012

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Learn about Mining in Brazil with IBRAM Founded on December 10th, 1976, the Brazilian Mining Association (IBRAM) is the Country’s entity that represents corporations and organizations in the mining industry. It is a private, nonprofit association with robust coordination capabilities, and it has the following objectives:

• Bring together, represent, promote, and advance the Brazilian Mining Industry in order to advo-cate for their interests and help boost their competitiveness;

• Collaborate with governments, including on the development of technical studies; • Promote sustainable development and use of best practices in occupational safety and health• in the Mining Industry; • Foster studies, research, development, innovation, and use of the best technologies available.

IBRAM:• Brings together 2401 Corporations (Mining companies and other organizations); • Represents companies that account for over 85% of Brazil’s Mineral Production. Institutional Commitment: contribute to the sustainable development of Brazil’s Mining Industry by generating wealth and social benefits while preserving the environment.

Board of Directors: draws on representatives of mining companies;

Executive Board: consists of five directors - a CEO, a Head of Mining Affairs, a Head of Environ-mental Affairs, a Head of Institutional Relations, and a Head of Administrative and Financial Affairs.

IBRAM IS A MEMBER OF THE FOLLOWING INTERNATIONAL INSTITUTIONS

ICMM – International Council on Mining & Metals OLAMI – Organismo Latinoamericano de Minería WEF – World Economic Forum SIM – Sociedade Interamericana de Minería WMC – World Mining Congress

REGIONAL OFFICES

IBRAM is headquartered in Brasília, the capital of Brazil, and has offices in Minas Gerais – the largest producing state in the country – and an office in Belém, capital of Pará state, in the Amazon region.

1 IBRAM had 240 members as of December 2012

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MINING COMPANIES IN BRAZIL

Mid-West: 1,075 companiesNortheast: 1,606 companiesNorth: 515 companiesSoutheast: 3,609 companiesSouth: 2,065 companies

Source: DNPM – 2012

Mining Companies in Brazil

An Optimistic Outlook for Mining in Brazil

MINING COMPANIES IN BRAZIL

According to consolidated annual mining reports provided by the mining companies for 2011, the National Mineral Production Department (DNPM) reported 8,870 mining companies operating in 2011. This includes both the Mining Concession Regime and the Licensing Regime. They are divided by region, as shown in the table below:

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BRAZIL IN THE WORLd

Over the past decade, Brazil’s Mining Industry posted vigorous growth thanks to factors such as the profound socioeconomic and infrastructure changes that the country has been experiencing. This has been the case despite the fact that expectations on the mining business have been reduced as a result of the international crisis. This growth is driven by urbanization in emerging countries endowed with significant territorial areas, high population density and large GDP (Gross Domestic Product), such as the BRICs (Brazil, Russia, India, and China), which coincidentally are major players in the global mining arena.

Canada

Australia

United KingdomGermanySpain

Italy South Korea France Mexico

Japan

ÍndiaChina

BRAZIL

United States Russia

Bangladesh

Nigeria

Pakistan

Indonesia

Area > 3 million km² Population > 140 million inhabitants

GDP > US$ 900 billion

BRAZIL IN THE WORLD

Source: Banco Mundial – 2010

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Paragominas (PA)

Carajás (PA)

Alagoas (AL)

Pedra Azul/Salto da Divisa (MG)

Governador Valadares (MG)

Espírito Santo (ES)

Criciúma (SC)

Castro (PR)

Araxá (MG)

Itaituba (PA)

Urucum (MS)

Presidente Figueiredo (AM)

Rondônia (RO)

Goiás (GO)

Bahia (BA)

Sergipe (SE)

São Paulo (SP)

Rio de Janeiro (RJ)

Rio Grande do Sul (RS)

MAJOR REGIONS WITH MINERAL DEPOSITS

Aluminum

Iron, Gold, Copper, Nickel and Manganese

Copper

Graphite

Gems

Ornamental Rocks

Iron QuadrangleIron, Gold, Manganese and Bauxite

Coal

Niobium

Gold

Manganese and Iron

Tin

Tin

Copper, Nckel and Gold

Bauxite, Iron, Vanadium, Aggregates,Nickel and Chromium

Potassium Salts

Source: IBRAM – 2012

CopperGoldAluminumTinIron-ManganeseGraphiteKaolinNickelCoalAggregates

Aggregates

Aggregates

Amethyst and Aggregates

Talc

TRADE BALANCE FOR THE MINING INDUSTRYBRAZIL'S TRADE BALANCE IN 2012 = US$ 29,550

Source: MDIC/Aliceweb – 2012

US$

milli

on (F

OB)

Exports Imports Balance

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2012201120102009200820072006

35,3

60

18,0

965,

497

12,5

99

22,8

419,

729 13

,112

11,0

304,

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6,54

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7

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11,2

9238

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38,6

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9,13

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Source: DNPM/IBRAM – 2012

TRENDS IN BRAZIL’S MINING PRODUCTIONUS$ BILLION

Year

Does not include oil and gas.Average value for the year.

EstimateGrowth in one decade = 550% 2008-2012 = 82%2009-2012 = 112.5%2010-2012 = 30%2012 /2011 = -3.7% (estimate)

0

5

10

15

20

25

30

35

78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 09

40

50

10 11

55

12

39

53 51

BRAZIL’S MINERAL PROdUCTION (BMP)

2012: Brazil’s Mineral Production totaled US$51 billion

Since 2000, increased demand for minerals, especially due to the high rate of growth globally, has boosted Brazil’s Mineral Production (BMP), in one decade, showed a significant growth. As urbanization rushes ahead and emerging economies go from strength to strength, it is estimated that BMP will continue to grow between 2% and 5% per year, over the next two years.

MINERAL PROdUCTION: BRAZIL’S GLOBAL POSITION (2012)

Exporter (Global Player)

Exporter Self-sufficiency Importer/ Produce

External depende

Niobium (1st) Iron Ore (2nd)

Manganese (2nd) Tantalite (2nd) Graphite (3rd) Bauxite (2nd)

Ornamental Rocks (4th)

Nickel Magnesite

Kaolin Tin

Vermiculite Chromium

Gold

Limestone Industrial Diamond

Talc Titanium Tungsten

Copper Diatomite Phosphate

Zinc

Metallurgical CoalSulphur

PotassiumRare Earths

Source: DNPM/PNM 2030/IBRAM – 2012

STRATEGIC MINERALS

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Brazil is a major player in the global Mining Industry. However, the Country is still dependent on some strategic minerals required by its economy. Brazil is the fourth largest consumer of fertilizers in the world and accounts for only 2% of the global production. The Country imports 91% of its potassium and 51% of its phosphate requirements, both essential for the fertilizer industry.

RANKING OF BRAZIL’S MINERAL PROdUCTION ANd RESERVES AT GLOBAL LEVEL

MineralsGlobal

ProductionPosition in Ranking

Brazilian Reserves

Position inRanking

Bauxite 14% 3rd 6.8% 5th

Copper 2% 5th 2% 13th

Ornamental Rocks 7.7% 3rd 5.6% 6th

Gold 2.3% 12th 3.3% 9th

Iron Ore 17% 2nd 11% 5th

Kaolin 6.8% 5th 28% 2nd

Manganese 20% 2nd 1.1% 6th

Niobium 98% 1st 98% 1st

Tantalite 28% 2nd 50% 1st

Tin 4.1% 5th 13% 3rd

Zinc 2.4% 12th 0.85% 6th

Source: PNM 2030/IBRAM – 2012

MAJOR EXPORTS ANd IMPORTS (US$ 1,000,000)

2010 2011 2012

Brazil’s exports 201,915 256,039 242,580

Mineral exports - Commodities 35,362 49,710 38,689

Iron Ore 28,912 41,817 30,989

Gold (in bars) 1,786 2,239 2,341

Niobium (Ferroniobium) 1,557 1,840 1,811

Copper 1,238 1,573 1,511

Silicon 460 637 523

Kaolin 275 261 236

Manganese Ore 357 306 201

Bauxite 270 319 325

Tin 8 23 16

Lead 12 9 7

Granite 219 247 233

Other 268 439 495

Brazil’s Imports 181,768 226,243 223,154

Mineral imports - Commodities 7,757 11,292 9,139

Mineral coal 3,575 5,231 3,600

Potassium Chloride 2,204 3,471 3,510

Phosphate 135 207 205

Copper 952 1,141 562

Zinc 157 184 169

Sulphur 246 441 414

Other 488 617 678

Balance – Brazil 20,147 29,796 19,425

Balance – Mining Industry 27,605 38,418 29,550

Source: Aliceweb – 2012 (updated in November 2012).

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Brazil’s Mining Trade Balance – Exports and Imports

BRAZIL'S MINING TRADE BALANCE – EXPORTS AND IMPORTS % of amount in US$

Source: MDIC/Aliceweb – 2012

Iron Ore

Phosphate

Potassium Chloride

CopperZinc Sulphur

Other

Mineral Coal

Gold (in bars)

Niobium(Ferroniobium)

CopperSilicon

Kaolim

Manganese OreBauxite Tin

Lead

Granite

Other

2.25%

38.41%

6.15%1.85% 4.53%

7.42%

39.39%

Imports

80.10%

6.05%

4.68%

3.90%1.35%

0.61%

0.52% 0.84%0.04%

0.02%

0.60%

1.28%

Exports

The largest ore producing states in 2012, according to CFEM (Financial Compensation for Mineral Resources Exploitation) revenues are:

MG (53.2%), PA (28.6%), GO (4.1%), SP (2.8%), BA (2.0%), and Others (9.3%).

In 2012, the royalties (CFEM) reached a new record of R$ 1.832 billion. In 2011 the amount had been significant with R$ 1.540 billion, or 42.8% higher than in 2010, which was R$ 1.078 billion.

CFEM – also known as the Mining Royalty – is one of many charges in the mining supply chain. This charge was established in Article 20, paragraph 1 of the 1988 Constitution, and it is payable to states, the Federal District, municipalities, and Federal Government agencies as consideration for the economic exploitation of mineral resources in their respective territories. CFEM’s revenues are distributed as follows:

• 12% to the Federal Government (DNPM 9.8%, IBAMA 0.2%, MCT/FNDCT 2%);• 23% to the state where the mineral has been sourced;• 65% to the producing municipality. Tax rates are applied onto the net revenue, and they vary according to the mineral involved:

• 3% for: aluminum ore, manganese, salt-gem, and potassium;• 2% for: iron, fertilizer, coal and other substances;• 1% for: gold;• 0.2% for: precious stones, cuttable colored stones, carbonates, and noble metals.

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ROYALTIES IN BRAZIL – 2005-2012(CFEM – FINANCIAL COMPENSATION FOR MINERAL RESOURCES EXPLOITATION)

Source: DNPM/IBRAM – 2012

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

20122011201020092008200720062005

R$ m

illion

465.8547.2

857.8

406

742.7

1,560.7

1,083.1

1,832.8

Employment in Brazil’s Mining IndustryA total of 175 thousand workers were employed in the mining sector in 2011. Studies conducted by the Ministry of Mines and Energy’s Secretariat for Geology, Mining and Mineral Processing show that the multiplier effect of job creation is 1:13 in the mining sector, i.e., for every job created in the mining sector another 13 jobs (direct jobs) are generated along the supply chain. Therefore, in 2011 the mining sector employed about 2.2 million workers directly, not including the job posts generated in research, exploration and planning, and the manpower employed in the mines.

Note: Informal work arrangements in the mining industry cannot be ignored, especially when it comes to minerals of high unit value (gems, gold, diamond, etc.), and also in the extraction of mineral aggregates for the civil construction sector. Many workers across Brazil’s 5,565 municipalities fail to be covered by official statistics. Estimates, though very inaccurate, indicate somewhere between 300 thousand and 500 thousand workers (PNM 2030).

THE IMPORTANCE OF MINING

Source: SNGMTM/MME

2

1

11

14

0

4

8

12

16

TotalInitialProcessing

MiningIndustry

Suppliers

IN JOB CREATION

Source: Ministry of Mines and Energy (MME)’s Secretariat for Geology, Mining and Mineral Processing – PNM 2030

2.2 million direct jobs are created in Brazil

(175,000 workers directly employed in the mining sector) Data: 2012

JOB CREATION

MULTIPLIER EFFECT 1:13

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HdI of Mining MunicipalitiesThe Human Development Index (HDI) of mining towns is higher than that of their respective states. Even when mining projects are set up away from major urban areas or even in areas with low social indicators, they bring a tangible potential for regional sustainable development. The HDI is published by the United Nations Development Program – UNDP.

Municipalities – States Ore HdI for the State HdI for the Municipality

Itabira – MG Iron Ore 0.766 0.798

Araxá – MG Niobium 0.766 0.799

Nova Lima – MG Gold 0.766 0.821

Catalão – GO Phosphate 0.773 0.818

Cachoeiro de Itapemirim – ES Ornamental Rocks 0.767 0.770

Parauapebas – PA Iron Ore 0.720 0.740

Oriximiná – PA Bauxite 0.720 0.769

Presidente Figueiredo – AM Cassiterite 0.713 0.742

Source: UNDP – 2012

Investments in the Mining SectorThe graphs on pages 12 and 13 show the growth in the volume of investments in Brazil’s mining sector.

The values provided by IBRAM are projections for five-year periods. Based on data obtained from the mining companies, IBRAM reported massive investments of US$75 billion for 2012-2016, which sets a new record for the Mining Industry.

It is one of the private segments with the most significant investments in the Country. After all, investments amount to US$15 billion per year. This figure is recalculated and updated periodically by IBRAM in its website.

These investments cover a large number of minerals, of which iron ore is the most important, accounting for 63% of total investments.

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MINERAL PROdUCTION GROWTH BY 2016

MineralProduction in 2011

(1,000 tons) (A)Increments by 2016

(1,000 tons) (B)Expected Production by 2016 (C)=(A+B)

Change (C/A)

Aggregates 673,000 176,000 849,000 26%

Iron 369,000 451,000 820,000 122%

Bauxite 31,000 7,000 38,000 23%

Manganese 2,600 400 3,000 15%

Phosphate 1,800 700 2,500 39%

Copper 400 200 600 50%

Potassium 290 2,110 2,400 728%

Zinc 285 65 350 23%

Niobium 90 30 120 33%

Nickel 70 30 100 43%

Gold 0.066 0.029 0.095 44%

Source: Estimates by IBRAM – 2012

INVESTMENTS IN THE MINING SECTOR – 2012-2016US$ BILLION


0

8

16

24

32

40

48

56

64

72

80

May/12Sep/11Jan/11Aug/10Apr/10Jan/10Mar/09Jul/08Jan/08Sep/07Jul/07Jan/07

2528

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47 49

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6264,8

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2007-2011 2008-2012 2009-2013 2010-2014 2011-2015 2012-2016

Record

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New investments in the Mining Sector (2012-2016): US$75 billion

INVESTMENTS IN THE MINING SECTOR – 2012-2016US$ BILLION

* Aluminum Supply Chain includes investments in Bauxite, Alumina and Aluminum.

0 10,000 20,000 30,000 40,000 50,000

Vanadium

Lead

Niobium

Chromite

Manganese

Zinc

Limestone

Phosphate

Gold

Copper

Aggregates

Nickel

Aluminum Supply Chain

Rare Earths

Potassium

Iron

New investments in the Mining Sector (2011-2015): US$68.5 billion

46,032

44,969

148

5,220

3,417

6,550

3,345

2,675

7,872

3,743

3,296

2,0432,542

1,725

2,418

1,0051,890

993

310

463

631

387

400

200

310

193

400

129200

*

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MAIN INVESTMENTS IN THE MINING SECTOR BY STATE2012-2016 – US$ 75 BILLION

GO – US$ 242,400.15 (0.32%)Copper and Nickel

MT – US$ 621,513.99 (0.83%)Limestone, Zinc and Gold

TO – US$ 96,960.06 (0.13%)Phosphate and Gold

AM – US$ 2,666,401.65 (3.56%)Potassium

PA – US$ 18,129,592.04 (24.17%)Aluminum, Bauxite, Manganese, Copper, Iron, Nickel and Gold

MA – US$ 1,713,284.26 (2.28%)Logistics and Gold

CE – US$ 2,464,294.12 (3.29%)Phosphate and Uranium

RN – US$ 387,840.24 (0.52%)Iron

AL – US$ 121,200.08 (0.16%)Copper

BA – US$ 6,535,216.11 (8.71%)Iron, Gold, Vanadium, Nickel and Chromium

ES – US$ 2,776,936.12 (3.70%)Iron and Logistics

MG – US$ 26,160,139.73 (34.88%)Bauxite, Alumina, Iron, Phosphate, Gold and Logistics

RJ – US$ 1,939,201.20 (2.59%)Logistics

SC – US$ 145,440.09 (0.19%)Coal

SE – 5,763,736.91 (7.68%)Potassium

MS – 1,939,201.20 (2.59%)Iron and Logistics

Yam

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Geological SurveyBrazil’s mineral potential is significant, but underexplored. To date, geological surveys have covered less than 30% of the national territory on an appropriate scale for the mining activity.

Indigenous lands account for 13% of Brazil’s territory and 25% of the Amazon, and they are among the regions that may have its mineral potential assessed, as well as the coastal strip, which is lo-cated along Brazil’s Continental Shelf.

The graph shows pent-up demand in geological surveying in Brazil.

To illustrate this, even though Brazil is seven times larger than Peru, the investments made by Brazil in geological surveying in 2011 were approximately 60% of the amount invested by Peru.

PRIVATE INVESTMENTS IN MINERAL EXPLORATIONTOP 10 COUNTRIES IN TERMS OF INVESTMENTS IN MINERAL EXPLORATION

Source: Metals Economic Group – 2012

Canada 19%

Chile 5%

Russia4%

Argentina 3%

Other countries 31%

Australia12%

UnitedStates

8%

Mexico6%

Peru5%

China4%

Brazil 3%

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INVESTMENTS IN MINERAL EXPLORATION WORLdWIdE

Global Investment

(US$ 10,700,000)

Area (km2) x 1,000

Absolute investments

Allocation of investments

Absolute investment/Area

(US$/km2)

Brazil’s investment x countries

Canada 9,971 2,033,000 19 0.2 5.4

Australia 7,682 1,284,000 12 0.2 4.5

United States 9,373 856,000 8 0.3 2.4

Mexico 1,973 642,000 6 0.0 8.7

Chile 0.757 535,000 5 0.0 18.8

Peru 1,285 535,000 5 0.4 11.1

Russia 1,7075 428,000 4 0.7 0.7

China 9,600 428,000 4 0.1 1.2

Argentina 2,780 321,000 3 0.1 3.1

Brazil 8,547 321,000 3 0.01 1

US$ 1,000Source: Metals Economic Group – 2012

The table shows the gap between the total amount invested in mineral exploration in Brazil and the other countries considered. This analysis takes into account the size of countries and confirms that even the smallest countries (Peru, Chile and Mexico) or those countries that are as large as Brazil are ahead of Brazil in terms of investments in mineral exploration.

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Aggregates – essentially sand and crushed stone – are the most consumed minerals in the world.

The term “construction aggregates” is used in Brazil to describe a segment of the mining industry that produces raw or processed minerals for immediate use in the construction industry.

PRODUCTION OF AGGREGATESMILLIONS OF TONS

0

100

200

300

400

500

600

700

800

900

202220212020201920182017201620152014201320122011201020092008200720062005200420032002

273 281316 331

358390

426 446 451 469489

509 529583

610637

666 696731

768807

Source: Anepac – 2012

In 14 years, the demand for construction aggregates jumped from 460 million tons in 1997 to 673 mil-lion tons in 2011, representing a 46.2% growth rate or an annual growth composite rate (CAGR - Com-pound Annual Growth Rate) of 2.8% pa. Now, with regard to 2001-2011, demand growth was 92.3%, i.e., a CAGR of 6.8% per year, which represents a remarkable increase in consumption.

The mining sector was one of the few that was not hit by the international crisis in 2008-9 and 2011-12.

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AGGREGATES IN BRAZIL – 2011

States/Regions Consumption of aggregates (t)

Amazonas 10,511,744

Pará 19,012,575

Acre 1,888,866

Rondonia 7,408,262

Roraima 1,183,520

Amapá 1,801,562

Tocantins 4,192,791

North 45,999,319 6.83%

Bahia 37,702,689

Alagoas 7,484,543

Sergipe 5,769,790

Pernambuco 26,778,265

Paraíba 8,823,781

Rio Grande do Norte 8,547,150

Ceará 19,692,468

Piauí 6,696,278

Maranhão 14,024,997

Northeast 135,519,961 20.11%

Goiás 23,595,020

Distrito Federal 14,915,681

Mato Grosso 11,426,783

Mato Grosso do Sul 8,572,237

Mid-West 58,509,721 8.68%

São Paulo 177,158,361

Minas Gerais 71,076,418

Rio de Janeiro 61,930,077

Espirito Santo 13,877,637

Southeast 324,042,493 48.10%

Paraná 41,941,737

Santa Catarina 28,455,865

Rio Grande do Sul 39,272,768

South 109,670,369 16.28%

BRAZIL 673,741,863

Source: ANEPAC – 2012

PER CAPITA CONSUMPTION

Brazil’s indicator for the consumption of aggregates in 2011 was 3.50 tons per capita. Brazil’s per capita consumption rose from 3.3 tons of aggregates per capita/year in 2010 to 3.5 tons per capita in 2011 – an increase of 6%. Compared to the developed world, Brazil is still quite far from the historical average of 6-7 tons per capita/year (e.g. United States).

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Based on the correlation of the growth in demand for cement and in Gross Domestic Product (GDP), growth for 2012-2022 was projected, starting with an estimated demand of 696 million tons in 2012 and reaching the significant amount of 1.12 billion tons in 10 years.

The graph shows the curves of aggregates, sand and gravel in 1997-2022.

Aggregates Sand Gravel

CONSUMPTION OF AGGREGATES IN BRAZILMILLIONS OF TONS

0

200

400

600

800

1,000

1,200

20222021202020192018201720162015201420132012201120102009200820072006200520042003200220012000199919981997

Source: Anepac – 2012

THE IMPORTANCE OF AGGREGATES

• For every kilometer of a subway line, 50,000 tons (t) of aggregates are required;• Paving a road requires about 9,800 tons of aggregates per kilometer;• Building a 50 sq m low-cost house consumes 68 tons of aggregates;• The construction of a building requires 1,360 tons for every 1,000 sq m.

Brazil’s increased investments in infrastructure for the Country to host the 2014 World Cup and the 2016 Olympics will ensure that demand for aggregates will continue to increase by 2022.

The aggregates sector in Brazil is experiencing a virtuous cycle supported by investments in infra-structure and housing works as a result of improved income levels, reduced unemployment and fall-ing real interest rates and thus greater availability of credit. The demographic boom is also a positive factor in the sustainability of this growth for at least another decade.

While strong demand for aggregates is expected to hold up in the medium and long terms, one-off drops do occur in industries connected to the construction sector, as seen in June 2012, with a decrease of 8.5% in steel production, according to the Brazil Steel Institute, and 9% in construction materials trade, according to Anamaco (National Association of Construction Material Dealers).

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BAUXITE PRODUCTIONMILLIONS OF TONS

0

50

100

150

200

250

201120102009200820072006200520042003200220012000

BrazilWorldSource: USGS – 2012

135 138 144 146159

220211

201205

190177

169

14.0 14.0 14.0 19.3 22.0 23.0 22.8 24.0 26.6 28.0 31.7 31.0

Brazil is the world’s third largest producer of bauxite, with 31 million tons in 2011. This is equivalent to 14.1% of the global production of 220 million tons. Australia is a leader in terms of production, with 30.45% of the total, followed by China, with 21% (USGS/2012).

The main producers and their share of production in Brazil are as follows:

• MRN (44%); • Norsk (29%);• CBA (17%);• Alcoa (12);• Others (2%).

The main producing states in Brazil are:

• PA (85%), MG (14%) and others (1%) (USGS/DNPM/ABAL – 2012).

RESERVES

Global reserves of bauxite totaled 29 billion tons. Brazil holds the 3rd largest reserve, with 3.6 billion tons of metallurgical bauxite. The largest reserves are in Guinea, followed by Australia, Brazil and Vietnam (USGS – 2012).

CONSUMPTION

Approximately 98% of the bauxite produced in Brazil is used in the manufacturing of alumina, and the remainder is used in the refractories and chemicals sectors.

Domestic per capita consumption of bauxite grew by 100% over the last ten years in Brazil, and reached 3.9 kg, but is still very low if compared to other countries: 37 kg in the USA and 31 kg in Japan.

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BAUXITE PRICINGUS$/TON

0

5

10

15

20

25

30

35

40

45

50

201120102009200820072006200520042003200220012000

Average value for the yearSource: Aliceweb – 2012

19.31 19.23 20.00

23.0022.20

25.4428.08

33.1635.40

31.40

25.40

43.75

BAUXITE EXPORTSTHOUSANDS OF TONS

0

800

1,600

2,400

3,200

4,000

4,800

5,600

6,400

7,200

8,000

20112010200920082007200620052004200320022001

ExportingSource: Aliceweb – 2012

3,426 3,368

4,705

7,290 7,508

5,3095,784

6,220

3,037

6,789 6,887

As of November 2012 – Exports: 6,329 thousand tons

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KAOLIN PRODUCTIONTHOUSANDS OF TONS

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

20112010200920082007200620052004200320022001

BrazilWorldSource: USGS/IBRAM – 2012

21,917

43,20045,100 44,500 44,700

37,50039,000

35,900

30,600 31,00033,300

1,670 1,782 2,081 2,381 2,410 2,455 2,530 2,580 2,030 2,400 2,050

Brazil is the fifth largest producer of kaolin, with approximately 2.05 million tons in 2011 – about 6.2% of global production, i.e., 33.3 million tons. Uzbekistan is the world’s largest producer, with 16.5% of the global total. The second largest producer is the United States (16.4%), followed by Germany (13.5%) and the Czech Republic (10.6%).

In Brazil, 2011 data show that the largest producers are:

• Imerys Rio Capim Caulim SA (52%); • Caulim da Amazônia SA (CADAM/Vale) (24%);• Pará Pigmentos SA (PPSA/Imerys) (19%); • Other (5%). It should be pointed out that Brazil produces processed ore for use in the paper industry.

RESERVES

The Country has abundant reserves of kaolin. Four countries hold 95% of an estimated total of 15 billion tons: USA 53%, Brazil 28%, Ukraine 7%, and India 7%. Brazil’s kaolin reserve measurements are 4.2 billion tons (USGS/IBRAM – 2012). These are very high quality reserves (in terms of white-ness and purity) for use in the specialty paper industry.

In 2011, Brazil exported 2.2 million tons and generated revenues of US$ 261 million, a decrease of 5% over the previous year (US$275 million). The following countries imported Kaolin from Brazil: Belgium (21%), United States (20%), Japan (14%), Netherlands (13%), Finland (11%), and others (21%).

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KAOLIN PRICINGUS$/TON

0

14.00

28.00

42.00

56.00

70.00

84.00

98.00

112.00

126.00

140.00

20112010200920082007200620052004200320022001

PriceSource: Aliceweb – 2012

103.00

119.00 122.00 121.00

110.00114.00

128.00 128.07123.75 121.55

116.68

FOB Price – Average value for the year

KAOLIN EXPORTSTHOUSANDS OF TONS

0

300

600

900

1,200

1,500

1,800

2,100

2,400

2,700

3,000

20112010200920082007200620052004200320022001


1,436 1,444

1,852

2,147 2,070

2,401 2,364

2,753

2,043

2,2952,216


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CONTAINED COPPER PRODUCTIONTHOUSANDS OF TONS

Source: USGS/DNPM/ICSG e Index Mundi – 2012

0

4,000

8,000

12,000

16,000

20,000

20132012201120102009200820072006200520042003200220012000

World Brazil

13,20013,700 13,600 13,600

14,600 15,00015,300 15,600 15,400 15,800 15,900 16,100

16,848

18,127

36.8 32 30 28 101 132 148 205 222 216 224 400 450 480

Brazil is the fifteenth largest producer of copper ore, and produced 400 thousand tons in 2011. In 2012, IBRAM estimates that the Country could produce 450 thousand tons. Production is ex-pected to grow more robustly and reach 600 thousand tons by 2015 as new projects become op-erational. World production of copper is estimated at 16,100 tons (2011), with Chile as the largest global producer (33.66% of the total), followed by Peru with 7.58%, China with 7.5% and the USA with 6.96% (USGS - 2012).

The main producers and their share of production in Brazil are as follows:

• Vale (46%);• Mineração Maracá (Yamana) (39%); • Mineração Caraíba (14%);• Votorantim Metais Níquel and Prometálica Mineração Centro Oeste (1%) (DNPM – 2012).

Global copper reserves are 690 million tons and Brazil’s reserves are 17.3 million tons across the following states:

ALAGOAS 2.95%

BAHIA 3.79%

GOIÁS 7.92%

MINAS GERAIS 0.02%

MATO GROSSO 0.05%

PARÁ 84.99%

RIO GRANDE DO SUL 0.19%

SÃO PAULO 0.10%

Source: USGS/DNPM/IBRAM – 2012

The global economic recovery and rapid urbanization rates in the developing world, especially in China, should ensure strong demand for copper, as well as sustained high prices.

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GLOBAL COPPER CONSUMPTION – TRENDS

Source: WBMS, Credit Suisse – 2012

6.8

6.9

7.0

7.1

7.2

7.3

7.4

7.5

7.6

201220102008200620042002200019981996

Annualized growth 3.2%

Global consumption Global trend

In Brazil, programs supported by demand for construction (Minha Casa Minha Vida Program), the automotive industry, sales of white goods, and the energy sector deserve special notice, which should be quite active in the coming years due to massive investments planned by the Federal Gov-ernment (as part of PAC, the Growth Acceleration Program) and infrastructure works for the World Cup and the Olympics.

FOREIGN TRADE – COPPER CONCENTRATETHOUSANDS OF TONS – COPPER CONCENTRATE ONLY

0

100

200

300

400

500

600

700

20112010200920082007200620052004

Exporting Importing

229

387364

573

638

597631 635

541

403

458468

423

473

536

483

Source: Aliceweb – 2012

As of November 2012 – Exports: 616 thousand tons Imports: 219 thousand tons

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IMPORTS ANd EXPORTS

Trends for the copper ore trade balance over the coming years is positive due to increased domestic production and increased exports and decreasing imports. Brazil is expected reach copper self-sufficient in 2013 with the additional production as part of new projects.

CONSUMPTION

The largest consumer of copper ore is the metallurgical industry, mostly as a supplier to the con-struction and wiring and cabling sectors. The demand for copper for the production of wires and cables is expected to grow 39% by 2016 in Brazil, and could reach 295 thousand tons per year by the end of this period. In addition to the booming construction industry driven by the Government’s housing project, holding the World Cup and Olympics in Brazil will help boost the sector.

GLOBAL COPPER CONSUMPTION – 2011

Other 5%

Electric / Electronic Sector 31%

Construction25%

Consumer and Miscellaneous

Transportation

17%

12%

Industrial Machinery10%

Source: LME – 2012

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PRICEUS$/TON

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

20132012201120102009200820072006200520042003200220012000

Average value for the year Source: LME – 2012

US$

1,7001,500 1,600

2,200

3,000

4,600

5,500

7,900

5,600

7,300

8,400

7,7657,327 7,350

HISTORICAL PRICE AND TRENDS OF COPPER

Source: The BLOOMBERG PROFESSIONAL™ service, Credit Suisse – 2012

3-month copper contracts Projection

$ 2,000

$ 3,000

$ 4,000

$ 5,000

$ 6,000

$ 7,000

$ 8,000

$ 9,000

$ 10,000

$ 11,000

201320122011201020092008200720062005

Average value for the year

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PER CAPITA CONSUMPTION

Per capita metallic copper consumption in Brazil is still low in comparison with that in other countries.

PER CAPITA CONSUMPTIONPER CAPITA METALLIC COPPER CONSUMPTION IN BRAZIL IS LOW

IN COMPARISON WITH THAT IN OTHER COUNTRIES

per capta Kg Cu

BRIC

SPD

UI –

Con

tinen

tal

0 2 4 6 8 10

European Union (EU-27)

North America

Oceania

Middle East

ASEAN-5

Latin America

Afric

Japan

US

Russia

China

Brazil 2.01

3.91

4.62

6.64

9.3

0.28

1.23

1.47

3.00

4.40

5.68

7.88

Source: London Metal Exchange – LME – 2012

GLOBAL REFINED METALLIC COPPER PRODUCTION – 2011

Oceania 2%

Asia46%

Americas28%

Europe19%

Africa5%

Source: London Metal Exchange – LME – 2012

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Brazil is the world’s fifth largest producer of tin ore, with production of about 12 000 tons of con-tained tin in 2011. This accounts for 4.74% of global production, i.e., 253 thousand tons. China is the largest producer, with 110 thousand tons (USGS/2012). The largest producers in Brazil are Mineração Taboca (66%), Coopersanta (20%) and others (14%). The main tin producing states are Amazonas and Rondônia, with about 60% and 40%, respectively.

RESERVES

Brazil has the third largest reserves of contained tin, i.e., about 12.3% of the total. Its reserves are located in the Amazon area: Mineral Province of Mapuera (Pitinga Mine), Amazonas state and Rondônia Tin Province (Bom Futuro, Santa Bárbara, and Massangana and Cachoeirinha). World reserves are distributed as follows: Asia 53.11%; (China 31,25%; Indonesia 16,66%; Malaysia 5,2%); Americas 27,08%; (Brazil 12,3%; Peru 6,45%; Bolivia 8.33%); Europe 6.6%; Australia 3.75% other countries (1.7%), according to USGS – 2012.

CONSUMPTION

Domestic demand for tin metal is comprised of five major industries: the steel industry for the manu-facturing of tin plates for the food and drink packaging industry; welding industry; chemical industry; pewter objects (light metal alloys); bronze, etc.

TIN PRODUCTIONTHOUSANDS OF TONS

0

50

100

150

200

250

300

350

2011201020092008200720062005200420032002

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249

207

264

290302 300

330

260 261 253

12.00 12.20 12.20 11.73 9.50 12.00 11.00 10.00 12.00 12.00

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GLOBAL TIN METAL CONSUMPTION – 2011


Other10%

Bronze

5%

Welding

52%

Glass2%

Tin Plates17%

Chemicals15%

FOREIGN TRADE – TINTONS

ImportingExportingSource: Aliceweb – 2012

0

800

1,600

2,400

3,200

4,000

4,800

5,600

6,400

7,200

8,000

2012201120102009200820072006

20.7

574

3,075.2 3,060.9

79.3 52

1,731.2

40.3 62.7 62.4 57

1,114.3

1,936.7

70.9

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TIN PRICINGUS$/TON

0

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

20112010200920082007200620052004200320022001


5,4294,447 4,888

8,4817,385

8,764

14,100

10,400

16,760

26,700 26,094

The rebound in tin exports in 2011 was due to the fact that the United States – the primary desti-nation of Brazilian exports – have increased their orders. Other major purchasers of Brazilian tin include the Netherlands and Mexico.

GLOBAL TIN PRODUCTION – 2011


Asia83%

Europe3%

Americas14%

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PRODUCTIONMILLIONS OF TONS

0

500

1,000

1,500

2,000

2,500

3,000

201120102009200820072006200520042003200220012000

BrazilWorld

Source: USGS – 2012

1,060 1,060 1,0801,160

1,340

1,5401,712

1,900

2,200 2,2402,400

1,920

212.52 236.92 214.56 263.77 262.03 278.14 317.00 350.00 351.00 331.00 372.00 390.00

Estimated production for 2012: World: 2,080 and Brazil: 510,80.

Brazil is the world’s second largest producer of iron ore, according to the U.S. Geological Survey and UNCTAD (United Nations Conference on Trade and Development). According to these sources, in 2011 the top three producers were China with 1.33 billion tons, Australia with 480 million tons, and Brazil with 390 million tons. When one takes into account the average grade of Chinese iron ore, however, production can be considered to be 380 million tons, compared with Australia and Brazil’s iron ore.

The largest producing companies in Brazil are: Vale with 84.52%, CSN with 5.45%, Samarco with 6.29%, MMX with 2.03%, and Usiminas with 1.71%.

The main producing states in Brazil are: MG (67%), PA (29.3%) and others (3.7%).

RESERVES

The measured and indicated reserves of iron ore in Brazil reach 29 billion tons, ranking the Country second with regard to world reserves of 180 billion tons.

However, considering reserves in terms of iron contained in the ore, Brazil plays a prominent role at the international arena.

This is because the high levels found in hematite ore (60% of iron) in Pará, and itabirite (50% of iron) in Minas Gerais.

dEMANd FOR IRON ORE

The global market tends to remain dependent on iron ore exports from Australia and Brazil at least until the end of 2015. These two countries have a combined market share of 70-72%.

Moreover, new projects make a pronounced contribution in the medium term, which will have an influence on the supply and demand curve for the ore supplied to China. According to studies by Credit Suisse, in the medium term we will be faced with technical and logistical challenges because of the declining quality of the ore.

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BRAZIL’S EXPORTS

Gross revenues from Brazilian iron ore exports in 2011 reached US$ 41.8 billion, which was above revenues in 2010 (US$ 28.9 billion).

Over the past eight years, Brazil’s iron ore exports reached the following levels:

BRAZIL'S IRON EXPORTS

YEAR VS. WEIGHT (T)

150,000

170,000

190,000

210,000

230,000

250,000

270,000

290,000

310,000

330,000

350,000

20112010200920082007200620052004

330,829

310,931

266,040

281,682

258,509244,594

223,378

200,925

YEAR VS. AVERAGE PRICE** (FOB)

3,000,000

7,700,000

12,400,000

17,100,000

21,800,000

26,500,000

31,200,000

35,900,000

40,600,000

45,300,000

50,000,000

20112010200920082007200620052004

41,817,251

28,911,882

13,246,904

16,538,421

13,887,799

11,754,156

9,415,0824,992,745

(*) Total exports by companies affiliated with SINFERBASE were 287,060 million tons in 2011

(**) FOB – (Free on Board) – Average value for the year

Source: MDIC – 2012

As of November 2012 – Exports: 294 million tons

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MAIN PURCHASING COUNTRIESOF BRAZIL'S IRON ORE – 2012

China45.78%

Other21.93%

Japan9.71%

South Korea4.97%

Netherlands4.56%

Italy4.09%

Oman 3.06%

Argentina2.95%

Germany2.95%

IRON ORE PROdUCTION INCREMENTS

Ranking Company / Year 2011 2012 2015 2016

1 Vale 311,800 360,000 425,000 425,000

2 CSN 20,100 30,000 89,000 89,000

3 Samarco 23,223 24,000 30,500 30,500

4 Ferrous Resources - 3,000 23,000 40,000

5 Outros - - 15,000 20,000

6 MMX 7,500 13,000 42,500 42,500

7 Usiminas 6,300 12,000 29,000 29,000

8 Namisa - 8,000 - -

9 Anglo American - 5,500 35,000 35,000

10 Mineração Corumbaense - 5,000 10,000 10,000

11 V&M - 5,000 5,000 5,000

12 Arcelor Mittal - 4,300 15,000 15,000

13 Mhag - 1,000 12,000 12,000

14 Bahia Mineração - - 20,000 20,000

15 Bemisa - - 2,000 5,000

16 Manabi - - - 31,000

TOTAL 368,923 470,800 751,000 809,000

Source: IBRAM estimativas – 2012

In thousands of tons

35

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IRON ORE SPOT PRICE (CFR CHINA)US$

40

60

80

100

120

140

160

180

200

220

2012 201120102009200820072006

Source: Credit Suisse, the Bloomberg ProfessionalTM Service – 2012 Average value for the year

20132012 20112010200950

70

90

110

130

150

170

190

210

US$

HISTORICAL AND FORECAST IRON ORE PRICESUS$/TON

Source: the Bloomberg ProfessionalTM Service, Credit Suisse – 2012

AVG's quarterly forecastIron Ore (62% Fe – CFR Tianjin Spot)Average value for the year

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IRON ORE IMPORTS – CHINAM/MT

0

100

200

300

400

500

600

700

800

900

1,000

20152014201320122011201020092008200720062005200420032002

111

148208

275326

384 444

628 619 636

701745

837

901

0

40

80

120

160

1,2001,0008006004002000

IRON ORE MARKET PRICINGSPOT PRICE – US$ 150/T (CFR*)

Source: Deutsche Bank – 2012

Brazil/Australia

Canada/USA/Europe/China

China

Spot Price US$ 150/T (CFR*)

Cumulative Tonnage (Millions of tons)

Iron Ore Production Cost Curve (US$/t)

(CFR*) – Cost and Freight (at the designated destination port)

China is the largest purchaser of Brazil’s iron ore – over 45% of Brazil’s exports go to China. It is expected that by 2020 China will need to import at least 400 million tons per year to meet its infra-structure expansion needs. According to Barclays, out of these 400 million tons/year, 50% would be supplied by Australia and at least 30% by Brazil. By way of comparison, 390 million tons was Brazil’s total iron ore production in 2011, of which 330.8 million tons were exported.

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Brazil and Australia are notorious iron ore producers due to the high content of Fe, the quality of reserves and efficient logistics (first portion of the curve).

The second and third highlighted portions of the curve show the composition of ore producers with substandard reserves in small mines and lowly mechanized processes that cause the marginal cost to go up, especially in China.

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FERTILIZERSFor years, fertilizer producers have been making the case for a tax reform that would place imported and domes-tic products on equal tax footing. Im-ported products have zero tariffs and no incidence of ICMS (a state tax), as opposed to domestic products, which are burdened by rates that come to 8.4% and a total tax burden (IR, PIS, COFINS, ICMS, and CFEM) that comes to 30.8% and 41.60% for Phosphate and Potassium, respectively, when they cross state borders. Mining companies supplying inputs for fertilizer produc-tion are committed to making Brazil less dependent on imported fertilizers and make investments to ensure pro-vision of raw materials. By doing this, they expect to help reduce imports and create jobs for Brazilians – historical commitments of a sector committed to the Country’s development.

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PHOSPHATE CONCENTRATE PRODUCTIONMILLIONS OF TONS

0

20

40

60

80

100

120

140

160

180

200

2011201020092008200720062005200420032002

BrazilWorldSource: USGS – 2012

135 137 141147

142147

167158

176

191

5.0 5.5 5.7 5.6 5.9 6.1 6.7 5.6 6.3 6.2

PHOSPHATE PRICINGUS$/TON

0

50

100

150

200

250

2011201020092008200720062005200420032002

PriceSource: Aliceweb – 2012

71.80 76.80

98.30

140.00

105.00

121.00

192.00

92.00 95.00

126.00


PHOSPHATEBrazil is the world’s sixth largest producer of phosphate, with about 6.2 million tons of phosphate concentrate in 2011. This is equivalent to 3.25% of the global production estimated at 191 million tons. As a result of new investments in the pipeline, production should reach 11.6 million tons per year for the next five years.

World production of phosphate rock is concentrated in seven countries – China, United States, Morocco, Russia, Tunisia, Brazil, and Jordan. China is the largest producer, with 72 million tons (USGS – 2012).

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SOURCE OF BRAZIL'S IMPORTS OF PHOSPHATE PRODUCTS

USA Morocco

Brazil

Russia

Israel China

Source: SECEX/MDIC/DNPM – 2012

USA – 21% Morocco – 25% Russia – 14% Israel – 10% China – 13% Other – 17%

RESERVES

Brazil has 310 million tons in contained ore reserves (USGS – 2012).

These reserves are concentrated primarily in Minas Gerais with 68%, followed by Goiás with 14%, São Paulo with 6%, and others with 12%.

IMPORTING

Phosphate rocks are mainly used in the manufacturing of fertilizers, although it is also an input for manufacturing soaps, detergents and other cleaning products and animal fodder.

Brazil is the world’s 4th consumer of fertilizers, after China, India and the United States.

Imports skyrocketed in 2011, especially intermediate phosphorus products, which jumped from 1.2 million tons in 2010 – US$ 561.3 million – to 2.1 million tons in 2011, at a cost of $ 1.3 billion. Imports of fertilizers and nitrogen-based fertilizers also reported a considerable increase since 416,5 thousand tons were imported in 2010, accounting for US$148.9 million, jumping to 1.1 million tons and US$498.5 million in 2011. In total, 6.3 million tons of intermediate goods were imported, mainly from Morocco (25%), U.S. (21%), Russia (14%), China (13%), and Israel (10%), at a cost of US$3.3 billion to the Country. Phosphorus-based primary goods posted moderate growth in quantity, but a significant increase in expenditures (from US$135.1 million in 2010 to US$207.3 million in 2011). These goods came primarily from Morocco (47%), Algeria (23%) and Peru (16%).

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POTASSIUM PRICINGUS$/TON

0

100.00

200.00

300.00

400.00

500.00

600.00

700.00

20112010200920082007200620052004


144.00

192.00176.00

222.00

567.00603.00

374.00

413.00

POTASSIUMBrazil is the world’s twelfth largest producer of potassium, with about 400 thousand tons in 2011. This is equivalent to about 1% of the global production estimated at 37 million tons. Canada is the leading producer, with 11.2 million tons.

Production of fertilizing potassium in Brazil begun in 1985 and is restricted to the Taquari–Vassouras mine/plant complex and was operated by Petrobrás Mineração S/A – Petromisa until October 1991. Once Petromisa was discontinued, all mining rights were assigned to Petrobras.

So Petrobras leased to Vale S.A. mining concession rights, including the Taquari–Vassouras mine/plant complex for a period of 25 years.

RESERVES

At global level, Canada with 46% and Russia with 34% are the two leading countries in terms of reserves, and are also the world’s largest producers, with approximately 48.7% of total production (2010 data). Brazil is ranked 4th, with reserves of 300 million tons of contained ore, which is equiva-lent to 3.6% of global reserves (USGS – 2012).

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POTASSIUM IMPORTSTHOUSANDS OF TONS

0

800

1,600

2,400

3,200

4,000

4,800

5,600

6,400

7,200

8,000

20112010200920082007200620052004

ImportingSource: Aliceweb – 2012

6,788

4,9835,400

6,762 6,751

3,417

6,040

7,611

As of November 2012 – Importing: 6,297 thousand tons

IMPORTING

The 2009 global crisis brought down purchases of potassium chloride by Brazil, which hit a record in 2008, with imports worth US$3.8 billion, since there is a gap between the Country’s production and its requirements.

Imports reached 7.6 million tons in 2011, which is 27% higher than 2010 (6 million tons). Potassium chloride imports cost Brazil US$3.4 billion in 2011.

Vale

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SOURCE OF BRAZIL'S IMPORTS OF POTASSIUM

Canada

Brazil

Russia and Belarus

Germany

Source: Adapted from IFA 2008 and Anda – 2012

Israel

Canada – 35% Germany – 12% Israel – 6% Russia and Belarus – 41% Other – 6%

CONSUMPTION

Potassium chloride is primarily used as a fertilizer, the agricultural sector accounting for the majority of the demand for this product.

Globally, over 95% of potassium production is used as fertilizer, with 90% of this production as po-tassium chloride and the remainder is used in the chemical industry.

Although Brazil’s production has grown in recent years, it is still far below domestic demand. Pro-duction meets only 9% of this requirement, with the remaining 91% imported.

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GLOBAL RANKING OF FERTILIZER CONSUMPTION

Position NPK Share Nitrogen Share Phosph. Share Potassium Share

1st China 29% China 31% China 28% China 19%

2nd India 16.5% India 16% India 20% USA 16%

3rd USA 12% USA 11% USA 10% Brazil 15%

4th Brazil 6.5% Indonesia 3% Brazil 9% India 12%

5th Indonesia 3% Brazil 3% Pakistan 2% Indonesia 4%

Millions of tons of nutrients

178.2 107.7 41.1 29.4

Brazil’s Share

Consumption: 6.5% 3% 9% 15%

Production: 2% 1% 3.2% 1%

Source: IFA, ANDA – 2012

BRAZIL'S CONSUMPTION – 2011MILLIONS OF TONS OF NUTRIENTS

0

20

40

60

80

100

PotassiumPhosphorousNitrogen

Note: Phosphorous production includes production with international inputsSource: ANDA/SIACESP – 2012

2.5 Mt 3.2 Mt

DomesticProduction

Importing

3.7 Mt

22%

78%

53%

8%

47%

92%

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Vale - Maicurú

CPRM/Norfértil - Igraraçu

CPRM - Miriri

Galvani/Fosfértil - Patrocínio

Bunge - Ipanema

Yara/Bunge – Anitápolis

INB/Galvani Santa Quitéria

Petrobrás - Itacotiara

Planned phosphate mine

Key:

Prospective potassiummining

Prospective phosphate mining

Vale – Taquari Vassouras

Galvani - Angico dos Dias

Itafós - Arraias

Copebrás/Fosfértil - Catalão

Bunge Fertilizantes - Araxá

Fosfétil - TapiraFosfétil - Patos de Minas

Galvani - Lagamar

Galvani - Irecê

Bunge Fertilizantes - CajatiSocal - Registro

Phosphate minein operation

Key:

Potassium mine in operation

LOCATION OF PHOSPHATE AND POTASSIUM MINES IN BRAZIL

Source: ANDA/SIACESP – 2012

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MANGANESE PRODUCTIONTHOUSANDS OF TONS

0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

201120102009200820072006200520042003200220012000

GlobalSource: LME – 2012

1,9242,041 2,153

2,9043,116 3,192

3,572

1,866

2,400

1,700

2,600

2,950

Brazil is the world’s sixth largest producer of manganese ore, with 2.95 million tons in 2011. Of this to-tal, 1.63 million were concentrated ore, accounting for 11.6% of global production, which is 14 million tons. South Africa is the largest producer of iron ore, with 24.28% of total production (USGS – 2012).

RESERVES

Brazil has 110 million tons of manganese ore reserves. The state of Minas Gerais holds the largest reserves with 87% of the total, followed by Mato Grosso do Sul with 6.5%, Pará with 4.3% and other states with 2.2% (USGS – 2012).

EXPORTING

Manganese exports reached 2.09 million tons in 2011, i.e., a reduction of 11% over the previous year, when 2.33 million tons were exported.

The volume imported in 2011 was only 6.7 tons (Aliceweb – 2012).

The Country runs a surplus in the manganese trade balance. In 2011, the balance (exports minus imports) was US$ 304 million FOB.

CONSUMPTION

Manganese has played a key role in the development of the various stages of steel production since it is the fourth most used metal in the world, after iron, aluminum and copper, and can be found in our daily lives, such as the steel used in cars and construction. As a result, approximately 90% of all manganese produced annually goes to steel plants as an alloying element.

The battery business ranks second as the most important sector in terms of manganese ore consumption. There is also another little known market for this ore, i.e., some vitamins, for man-ganese is essential for all forms of life, including human beings, who need to consume 1 to 5 mg of this mineral per day.

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MANGANESE PRICINGPRICES PER US$/TON FOB

0

50.00

100.00

150.00

200.00

250.00

300.00

350.00

20112010200920082007200620052004200320022001


45.54 45.99 45.46 53.40

77.61

48.99

86.48

302.80

115.80

156.20174.92

MANGANESE EXPORTSTHOUSANDS OF TONS

0

500

1,000

1,500

2,000

2,500

20112010200920082007200620052004200320022001

1,222

903

1,057

1,862 1,825

1,134

1,288

2,034

1,608

2,325

2,090



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Brazil is the world’s largest producer of niobium, with approximately 58 tons of Ferroniobium (FeNb) in 2011, i.e., 92.06% of the world’s total (USGS/DNPM/IBRAM – 2012).

Domestic production has been on the rise due to a booming ferroalloy market, driven by the sig-nificant GDP growth in Asian countries and the increase in the global production of crude steel.

In Brazil, the primary producing states (by CFEM revenues in 2012) are:

• MG (69%); • GO (30%).

RESERVES

Brazil holds the world’s largest reserves of niobium, followed by Canada and Australia.

The measured reserves of niobium (Nb O) totaled 842.400.000 tons data by BRAM 2011), with an average Nb O grade of 0.73% and these reserves are concentrated in the states of Minas Gerais (75.08%), Araxá and Tapira; Amazonas (21.34%), São Gabriel da Cachoeira and Presi-dente Figueiredo, and Goiás (3.58%), in Catalão and Ouvidor.

EXPORTING

The product most exported by Brazil is Ferroniobium, accounting for over 90% of exports of nio-bium and related products.

In 2011, exports totaled 70,009 tons, with revenues of US$1.8 billion for the Country (Aliceweb – 2012).

NIOBIUM PRODUCTIONTONS

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

201120102009200820072006200520042003200220012000

BrazilWorldSource: IBRAM – 2012

38,0

58 42,3

96

44,2

79

41,8

58

43,2

49

61,7

09

72,5

00

85,0

00

62,0

00

78,0

00 83,0

00

63,0

00

35,4

58

38,7

96

40,3

79

38,0

58

39,1

49

58,0

09

68,8

50

81,9

22

60,6

92

75,0

00 80,0

00

58,0

00

49

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NIOBIUM PRICINGUS$/TON

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

20112010200920082007200620052004200320022001


13,197 12,826 12,578 12,37613,501 13,512

22,764

32,987

23,357 23,09126,021

NIOBIUM EXPORTSTONS

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

201120102009200820072006200520042003200220012000


27,927 28,42931,256

33,688 35,766

51,671

59,344

71,856 72,771

45,391

66,94770,009

As of November 2012 – Exports: 67,612 tons

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CONSUMPTION

Increased demand for more efficient raw materials is raising the profile of the so-called “rare minerals” or “strategic minerals”.

Brazil uses 100 grams of niobium for every ton of steel. And a great opportunity to expand busi-ness is with China; despite being the largest purchaser of niobium in the world, it uses a small amount of this ore in steel – 25 grams per ton.

CBMM holds reserves with an estimated durability of 200 years, and expects growth of 60% in nio-bium sales by 2015. The volume should go up to 100 thousand tons.

Estimates are based on the fact there is still low adherence to product in the world. Demand for niobium is higher in technologically developed countries, where 80 to 100 grams of ore per ton of steel are used.

The most significant increase in niobium is yet to come, especially given concerns on sustainability.

For example, ferroniobium could help produce lighter cars that run on less fuel. An average car has between 800 and 1,000 kilos of steel. If 100-150 kilos are removed from automobiles, they will save a liter of petrol for every 200 km run. In large-scale infrastructure works, you can use a stronger steel and build the same structure 60% lighter.

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Brazil is the seventh largest producer of nickel contained in ore, with 83,000 tons produced in 2011. Russia is the largest producer, with 15.55% of the total volume, followed by Indonesia and the Philip-pines with 12.7% each, and Canada with 11.11%.

In Brazil, the primary producing states (by CFEM revenues in 2011) are:

• BA (68%) GO (22%) and MG (10%).

RESERVES

The measured and indicated reserves for nickel in Brazil reached 8.7 million tons of contained ore. So they are ranked third among the world’s largest reserves, with 10.87% of the total, which is 80 million tons. Australia has the largest reserve – 30% (USGS – 2012).

CONSUMPTION

The largest consumers of nickel are manufacturers of stainless steel, and their consumption in-creased significantly worldwide over the past ten years.

The rest goes into the production of other types of steels, artifacts such as electroplating, alpacas (metallic alloys) etc.

The world consumed 1.31 million tons of nickel in 2008, and this consumption was driven strongly by China. As the crisis struck in 2009, demand fell somewhat, but experts believe it will reach In 2011, the demand for nickel increased by approximately 7%, with a 12.5% increase in the produc-tion of stainless steel.

FOREIGN TRAdE

Trends for Brazil’s nickel trade balance for the coming years is favorable.

The spread between exports and imports has been increasing since 2004.

Brazil imports ferronickel alloy products and other unwrought, not alloyed nickel and exports matte nickel products and unconnected nickel cathodes.

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DOMESTIC CONCENTRATE NICKEL ORE PRODUCTION – 2000-2011THOUSANDS OF TONS/YEAR

0

10,000

20,000

30,000

40,000

50,00060,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

201120102009200820072006200520042003200220012000

Source: Sumário Mineral Brasileiro/AMB – 2012

45,317 47,097 45,029 45,160

124,983

108,983

41,059

67,116

58,317

82,492

74,198

47,446

Note: (1) Contained Nickel: contained Ni, Matte nickel, electrolytic Ni and Ni contained in the FeNi alloy. (2) From 2010, two companies entered the nickelmarket – Mirabela Mineração do Brasil and Vale S.A., the former being headquartered in Itagibá-BA, and the second, in São Félix do Xingu-PA.

World Brazil

CONTAINED NICKEL PRODUCTION THOUSANDS OF TONS/YEAR

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

201120102009200820072006200520042003200220012000

Source: USGS/DNPM – 2012

1,320

1,370

1,360

1,360

1,460

1,500

1,530

1,660

1,570 1,430

1,500

1,800

31.728

33.700

29.961

30.504

32.943

36.315

37.871

39.802

33.994

34.543

41.884

50.974

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CONTAINED NICKEL PRICES THOUSANDS OF TONS/YEAR

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

201120102009200820072006200520042003200220012000


7,0006,000

7,000

16,80015,000

13,500

33,500

25,800

11,000

18,475

24,10522,887

ImportingExporting

FOREIGN TRADE – CONTAINED NICKEL TONS

0

10,000

20,000

30,000

40,000

50,000

60,000

2011 2010200920082007200620052004

26,460 26,65224,363

28,44326,614

31,220

41,820

54,894

13,835

9,869

6,059 5,783 5,3163,589 3,959 4,438


As of November 2012 – Exports: 42,815 thousand tons Imports: 3,838 tons

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GLOBAL NICKEL PRODUCTION – 2011


Stainless steel66%

Chemicals3%

Other alloys24%

Electroplating8% Asia

41%

2%Africa

Americas16%

Europe31%

Oceania10%

ConsumptionGlobal

Production

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Gold

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Brazil is the world’s thirteenth largest producer of gold, with 66 million tons in 2011. For 2012, IBRAM’s estimated production is 70 tons. China is the largest producer, with 355 tons (13.14% of global production), followed by Australia with 10%, USA (8,77%), and South Africa (7.03%) according to USGS data.

The largest producing companies in Brazil are: Kinross (29%), AngloGold Ashanti (22%), Yamana Gold (17%), Jaguar Mining (7%), and other companies (13%). Prospecting sites produce 12%.

According to the DNPM, he main producing states in Brazil are: MG (64%),GO (11%), BA (11%) and PA (3%).

Increased purchasing power of classes C and D is increasing consumption of gold in Brazil. Gold is part of this consumption not only in the form of jewelry, but also as electronics, computer parts, notebooks and tablets, mobile phones, parts for the automotive industry, hospital and dental care industries, as well as construction industry components. In addition, Brazil uses metal recycling, and gold comes to be reused 10 tons/year.

RESERVES

The primary gold reserves are located in South Africa (6 thousand tons), which correspond to 11.7% of the world total, which is 51 thousand tons. Brazil’s mineable reserves of gold reached 2.6 thou-sand tons, or 5% of the world ore reserves, distributed across the states of Pará (42.7%), Minas Gerais (28%), Mato Grosso (6.9%), Goiás (5%), Bahia (4.5%) and others (12.9%).

• 2011 Brazil Reserve: 2,600 thousand tons • Global total: 51.000 mil tons (USGS – 2012)

EXPORTING

Gold bullion exports hit a record (in terms of value) in 2010, bringing foreign exchange to the Country of nearly US$1.8 billion and, in 2011 US$2.2 billion. In terms of foreign exchange generation for Brazil, gold is the second most important export mineral, second only to iron ore.

Countries that import gold from Brazil are the UK (45%), Switzerland (32%), United Arab Emirates (12%), United States (9%), and Canada (2%).

COUNTRIES THAT IMPORT GOLD FROM BRAZIL – 2012

United Kingdom

45%

Switzerland32%

ArabEmirates

12%

UnitedStates

9%

Canada2%

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EXPORTINGTONS

ExportingSource: MDIC/Aliceweb – 2012

0

5

10

15

20

25

30

35

40

45

50

2011201020092008200720062005200420032002

35.3

28.2

31.430.4

32.8

35.8 37.0

45.0 45.9 44.6

As of November 2012 – Exports: 41 tons

GOLD PRODUCTIONTONS

0

500

1,000

1,500

2,000

2,500

3,000

BrazilWorld

Source: DNPM/USGS/IBRAM – 2012

2004

2,430

47

2005

2,470

38

2006

2,460

44

2007

2,380

48

2008

2,260

54

2009

2,350

57

2,450

2010

58

2011

2,700

66

Estimated production for 2012: World: 2,750 and Brazil: 70.

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PRICEQUOTED PRICE/YEAR IN US$/OZ


0

180

360

540

720

900

1,080

1,260

1,440

1,620

1,800

20112010200920082007200620052004200320022001

272 310364

410 445

604

836 865

1,104

1,410

1,550

Source: LME – 2012 Price as of September 2012: US$ 1,717.90/Oz

Gold is one of the oldest financial assets, and provides high liquidity and safety. When an international crises sets in, it is heavily used as a reserve, which makes its price soar on the stock exchanges.

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Brazil is the twelfth largest producer of uranium, with 265 tons, according to the Nuclear Indus-tries of Brazil (INB), which holds the monopoly on this mineral. Production meets the demand of nuclear power plants Angra I and Angra II, however, the Country’s demand is 430 tons/year.

In 2006-2009, INB extracted from Caetité (BA) about 400 tons needed to keep the plants running – 150t for Angra 1 and 250t for Angra 2.

In 2010, production was reduced by more than half: only 180 tons of uranium were produced by INB. The remainder had to be imported, thus generating am extra cost of R$40 million for Brazil’s nuclear power generation.

In Brazil, the main producing state is Bahia (100%), however, INB will start extracting uranium in Santa Quitéria (CE). This mine has the capacity to produce 1,100 tons of uranium in 2012 and another 1,600 tons subsequently, allowing Brazil to export more than 1,000 tons of surplus.

Canada is the world’s largest producer, with 10 thousand tons/year, followed by Kazakhstan, with 7,9 thousand tons/year and Australia, with 7.7 thousand tons/year. These three countries account for more than half the production of uranium. Kazakhstan stated that it intends to double produc-tion over the next three years, to 15 thousand tons, which will make it the world’s largest producer. Global demand for uranium is 67 thousand tons/year and, according to WNA – World Nuclear As-sociation, this demand is expected to double by 2030.

URANIUM CONCENTRATE PRODUCTIONTONS/YEAR

0 2,000 4,000 6,000 8,000 10,000 12,000

Brazil

Namibia

Russia

Niger

Australia

Kazakhstan

Canada

Source: World Nuclear Association – 2012

10,485

7,994

7,743

3,355

3,239

3,217

238

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RESERVES

Brazil holds the seventh largest reserve of uranium (276 thousand tons) in the world, and only about 30% of its territory has been searched.

Brazil is estimated to have over 800 thousand tons of uranium ore, which would place it as the holder of the third largest uranium reserves in the world. For this to be economically feasible, the state monopoly would need to be broken.

GLOBAL URANIUM RESERVES – 2011THOUSANDS OF TONS

0 500 1,000 1,500 2,000

USA

Namibia

Brazil

South Africa

Niger

Canada

Russia

Kazakhstan

Australia

Source: World Nuclear Association – 2012

1,661

629

487

468

421

279

276

261

207

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URANIUM PRICING US$/TON

0

20.00

40.00

60.00

80.00

100.00

120.00

201120102009200820072006200520042003200220012000

Source: Indexmundi – 2012

7.00 5.0010.00 10.00 12.00

30.00

40.00

110.00

47.00 45.0048.00

56.24

PRICE

Uranium price in the international market has been more than 700% up since 2000. The price jumped from US$7/Lb to US$56.24/Lb in 2011. In June 2007, it came to US$135/Lb.

CONSUMPTION

The largest consumers of uranium are nuclear plants. Uranium is used to fuel reactors to generate electricity, which now account for 16% of electricity in the world.

THE ATOMIC GEOGRAPHY – MAJOR CONSUMER COUNTRIES

Country % of nuclear energy generation Number of active nuclear plants

1 USA 19.4 104

2 France 77.7 58

3 Japan 18.1 50

4 Russia 7.6 33

5 Korea 34.6 23

6 India 3.7 20

7 Canada 15.3 17

8 UK 17.8 16

9 Ukraine 47.2 15

10 Germany 17.8 9

24 Brazil 3.2 2

Source: International Nuclear Safety Center e WNA – 2012

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URANIUM AS A SOURCE OF ENERGY

World population and economic growth has generated an increasing demand for energy.

Rising oil and gas prices and concerns about carbon emissions and global warming have shown the need for a new mix of power generation that minimizes the effects caused by the currently most used sources – oil and coal.

Uranium is an alternative source of energy, in the form of fuel for nuclear energy. For example, France has 78% of its electricity generation produced by nuclear reactors.

POTENTIAL ENERGY GENERATION BY SOURCE

Source Production

1 Kg of firewood 1 KWh

1 Kg of coal 3 KWh

1 Kg of oil 4 KWh

1 kg of uranium 50,000 KWh

1kg 10 ton 20 tonof Natural Uranium of Oil of Coal= =

URANIUM’S ENERGY EQUIVALENCE

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SECTOR-SPECIFIC GLOBAL ZINC CONSUMPTION – 2011


Chemicalsand oxides

6%

Drawn wires

6%

Galvanization50%

Other4%

Bronze and tin 17%

Zinc alloys17%

Brazil is the twelfth largest producer of zinc ore, approximately 284,400 tons of zinc concentrate in 2011. This accounts for 2.3% of world production of 12.4 million tons. China is the largest producer, with 3.9 million tons in 2011, i.e., 31.45% of global production. Then there is Peru with 11.30% and Australia with 11.30% (USGS – 2012).

RESERVES

The measured and indicated reserves for zinc in Brazil reached 6.5 million tons of contained ore. In-dicated and inferred measurements), the majority in the State of Minas Gerais (88%). The remainder can be found in the states of Mato Grosso, Paraná and Pará. Total world reserves are 250 million tons. Australia and China hold the largest reserves: 22.4% and 17.2% of total, respectively (USGS – 2012).

CONSUMPTION

Zinc has many applications: protection of steel against corrosion and rust in the automotive, appli-ance and construction industries, and power towers and cellular telephony; inputs for the rubber vulcanization industry; ceramics, textiles and cosmetics; production of batteries; treatment of zinc deficiency in soils, in addition to food, medicine and electronics sectors.

According to Brazil Steel Institute, the main consuming sectors of hot galvanized metal sheets and electro-galvanized sheets were: automotive (48%), construction (10.6%); household and commer-cial appliances (6.5%), especially appliances.

• Apparent consumption of zinc for 2011: 256,000 tons;• 2011 exports: 36,273 tons;• 2011 imports: 20,907 tons;• 2011 production: 284.4 tons.

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ZINC STATISTICS (TONS)

Position Production Exports Imports 1 Apparent Consum.

2011 284,400 36,273 20,907 256,000

2010 288,107 81,288 39,308 241,403

2009 242,136 79,593 27,892 196,305

2008 248,874 39,125 38,559 245,916

2007 265,126 58,429 34,945 240,023

2006 272,331 72,494 27,165 216,624

2005 226,508 72,416 24,684 218,307

2004 268,662 59,406 36,342 245,597

Source: ICZ – 2012

Note: Zinc apparent consumption by ICZ was calculated through the following formula: “Apparent Consumption = Imports + Sales in”.

ZINC CONCENTRATE PRODUCTIONTHOUSANDS OF TONS/YEAR

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

201120102009200820072006200520042003200220012000

BrazilWorldSource: IBRAM – 2012

8,730 8,8508,360

9,0109,600 9,800 10,000

10,500

11,60011,100

12,00012,400

100 108 134 159 159 170 185 194 200 242 288 284

Brazil's production estimated in 2012: 290 thousand tons.

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ZINC PRICINGUS$/TON

0

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

4,500.00

5,000.00

2011201020092008200720062005200420032002


Source: http://www.lme.com/zinc.asp – 2012

900.00 1,000.00

1,400.00

2,100.00

4,330.00

2,385.00

1,090.00

2,545.002,350.00

2,192.00

Estimated zinc price on December 18, 2013: $1,870.00 (LME)Zinc price on August 7, 2012: $1,807.00 (LME)

HISTORICAL AND FORECAST ZINC PRICESUS$/TON

AVG's quarterly forecastZinc 3M

Source: The BLOOBERG PROFESSINALTM service. Credit Suisse – 2012

800.00

1,300.00

1,800.00

2,300.00

2,800.00

3,300.00

3,800.00

4,300.00

4,800.00

2011 2012 2013201020092008200720062005

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PRODUCTION BY CONTINENT – ZINC


Americas

14%

Oceania 4%

Asia61%

Africa2%

Europe19%

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GOVERNANCE

EXECUTIVE BOARD

José Fernando CouraChief Executive Officer

Marcelo Ribeiro TunesHead of Mining Affairs

Rinaldo César MancinHead of Environmental Affairs

Walter B. AlvarengaHead of Institutional Relations

Ary PedreiraHead of Administrative and Financial Affairs

BOARD MEMBERS

ANGLOGOLD ASHANTI LTDAHélcio Roberto Martins Guerra – MemberJosé Margalith – Alternate

COPELMI MINERAÇÃO LTDACesar Weinschenck de Faria – MemberCarlos Weinschenck de Faria – Alternate

MINERAÇÕES BRASILEIRAS REUNIDAS S.A. – MBREdmundo Paes de Barros Mercer – MemberSolange Maria Santos Costa – Alternate

MINERAÇÃO RIO DO NORTE S.A. – MRNJúlio Cesar Ribeiro Sanna – MemberLuiz Henrique Diniz Costa – Alternate

KINROSS BRASIL MINERAÇÃO S.A.Antonio Carlos Saldanha Marinho – MemberRicardo Rodrigues dos Santos – Alternate

VALE S.A.Vânia Somavilla – MemberSalma Torres Ferrari – AlternateClóvis Torres Júnior – MemberCarlos Anísio Figueiredo – AlternateMarconi Tarbes Vianna – MemberSilmar Magalhães Silva – Alternate

VOTORANTIM METAIS S.A.Jones Belther – MemberValdecir Botassini – Alternate

EMBÚ S.A. ENGENHARIA E COMÉRCIOFábio Luna Camargo Barros – Alternate

SAMARCO MINERAÇÃO S.A.Júlio Eustáquio Tizon – Alternate

IBRAM - BOARD OF DIRECTORS (2011-2013 BIENNIUM)

CHAIRRicardo Vescovi de AragãoSamarco Mineração S.A.

VICE CHAIRLuiz Eulálio Moraes TerraEmbú S.A. Engenharia e Comércio

IBRAM – HQSHIS QL 12 Conjunto 0 (zero) Casa 04 – Lago Sul – Brasília, DF, Brazil – CEP 71630-205Phone: +55 61 3364.7272 – Fax: +55 613364.7200 – E-mail: [email protected] – Web: www.ibram.org.br

IBRAM AMAzônIATravessa Rui Barbosa, 1536 – B. Nazaré – Belém, PA, Brazil – CEP 66035-220 Phone: +55 91 3230.4066 / Fax: +55 91 3349.4106 – E-mail: [email protected]

IBRAM MInAs GeRAIsRua Alagoas, 1270, 10º andar, sala 1001 – Ed. São Miguel, Belo Horizonte, MG, Brazil – CEP 30.130-160Fone: +55 31 3223.6751 – E-mail: [email protected]

PRess ADVIsORY Profissionais do Textowww.ptexto.com.br


economy

7th edItIon

Brazil 3aggregates 17Bauxite 20Kaolin 22Copper 24tin 29iron 32Fertilizers/

phosphate/potassium 38manganese 46niobium 48nickel 51Gold 55Uranium 58zinc 62

Introductioncontents

This is the 7th edition of “Information and Analyses on the Brazilian Mineral economy”, published by the Brazilian Mining Association – IBRAM.

It provides statistics and analysis on minerals, as well as consolidated information generated by the Mining Industry in Brazil.

each chapter discusses a different mineral asset. These are: Aggregates for Civil Construction, Bauxite, Kaolin, Copper, Tin, Iron, Fertilizers/Phos-phate/Potassium, Manganese, niobium, nickel, Gold, Uranium, and zinc. The chapter on Brazil covers the consolidated information on the domestic industry.

This report includes IBRAM’s latest economic information on Produc-tion, Mineral Reserves, Market Prices, Foreign Trade, Investments in Production, and Consumption of the Mineral Assets covered.

The report on Mineral Commodities in Brazil provides the following data:

• Brazil’stotalannualmineralproductiontraded;• rankingofmajorminerals(byvolumeandproduction);• mineralGDPgrowth;• foreigntradedata;• primarymineralexportsandimports;• totalCFEM(FinancialCompensationforMineralResources Exploitation)revenues;• variationsinthepriceofminerals,and• estimatedinvestmentsinthemineralsector.

The Information and Analyses on the Brazilian Mineral economy can be accessed through IBRAM’s portal – www.ibram.org.br – which is updated on an ongoing basis.

The Association intends to expand the portfolio of minerals in order to put together the most comprehensive database on the Mineral Industry, which will provide figures that illustrate the benefits provided by the Mineral Industry to the economy and welfare of Brazilian citizens.The Portuguese version of this

document – Informações e Análises da Economia Mineral Brasileira – is available from IBRAM’s website:

www.ibram.org.br

December 2012


economy

7th edItIonDecember 2012

shis ql 12 Conjunto 0 (zero) – Casa 4Cep: 71.630-205 – Brasília/DF

+ 55 61 3364-7272 / 3364-7200

[email protected] www.ibram.org.br

inFormation anD analyses on the Brazilian m

ineral eConomy – 7th eDition – DeCem

Ber 2012

Atenção: confirmar medida da lombada conforme o miolo impresso

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InformatIon and analyses eC on the BrazIlIan · PDF file · 2013-07-09on the BrazIlIan mIneral economy 7th edItIon ... D e C em B er 2012 ... Copper Silicon Kaolim Manganese Ore Bauxite