BRAZILIAN MINERAL SECTOR - INSG MINERAL SECTOR- ... Status of Brazil in the Global Mineral Market....

Ministry of Mining and EnergySecretary of Geology, Mining and Mineral Processing

BRAZILIAN MINERAL SECTOR-

An Overview of the Nickel Sector

Carlos Nogueira da Costa JuniorDeputy-Secretary

-Jones Belther

Director of the Votorantim Metais

Lisbon, may 2007


MISSION

To guarantee the attendance of the energy necessities, mineral

resources and the geological knowledge of the Country, within a socially equitable form , sustainable environmentally and economically

viable


Strategies for the Mineral Sector Development

• Attraction of external investments

• Incentive to the aggregation value

• foment to the local productive arrangements

• Legal regulation stability

• Support to micron, small and medium enterprises


Mineral Activities Overview

Request for Exploration Authorization 24.555

Exploration Authorization Permit 55.423

Mining Concession 8.235

Licencing 12.376

Request for Mining Concession 38.774

Mineral Exploration

30 30 millionmillion haha

MiningConcession

1.8 1.8 millionmillion haha


Mining Industry in Brazil

• Brazil markets 80 mineral products

• Value of Mineral and Metal Production (2005):US$ 65,7 billion, excluding oil and natural gas (4.0% of GDP)

• Mineral trade balance (2006):US$ 17,3 billion (37,5 % of overall trade surplus)


Status of Brazil in the Global Mineral Market

Niobium

Iron

Bauxite

Manganese

Graphite

Tantalum

Amianthus

Global Player Exporter Self Sufficiency

Nickel

Magnesium

Kaolin

Vermiculite

Chrome

Mica

Limestone

(cement)

Industrial Diamond

Titanium

Gold

Talc

Copper*

Importer

Phosphate

Zirconite

Zinc

Diatomite

Potassium

Surfur

MetallurgicCoal

Rere EarthElements

Importer

/Producer

*About 2007


MINERAL EXPORTS - 2005

15.718.523

10.872.823

784.541736.426

491.640459.418

438.968298.906

274.967

228.621

218.118

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

16.000.000

18.000.000

IRO

N

ALU

MIN

IO

DIM

.STO

NES

CO

PPER

CLA

Y

GO

LD

NIO

BIU

M

MAN

GAN

ESE

NIC

KEL

KAO

LIN

PHO

SPH

ATE


MINERAL IMPORTS - 2005

139.301169.242235.955

339.804442.759

887.7951.009.9721.006.629

1.248.389

1.697.621

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

CO

AL

CO

PPER

PO

TASSIU

M

IRO

N

PH

OSPH

ATE

BAU

XIT

E

SALT

TIT

AN

IUM

NIC

KEL

SU

LFU

R

US$ 1,000


Mineral Production Overview

COAL3%

GEMS AND DIAMOND

2%

METAL52%

NON-METAL43%

GEMS AND DIAMOND – 2%

COAL 3%

NON METAL 43%

METAL 52%


Investments ForecastExpected investments through 2005-2010

Total: US$ 30.2 Billion

Others50%

Iron ore36%

Bauxite&alumin

a14%

Mineral exploration

2%

Mining28%

Production expansion

25%

Logistics3%

Siderurgy42%

MINERAL EXPLORATION 2%IRON AND STEEL

INDUSTRY - 42%

LOGISTIC - 3%

PRODUCTIONL EXPANSION – 25%


Trade Balance

0

2 0 ,0 0 0

4 0 ,0 0 0

6 0 ,0 0 0

8 0 ,0 0 0

10 0 ,0 0 0

12 0 ,0 0 0

14 0 ,0 0 0

2000 2001 2002 2003 2004 2005

US$

Mill

ion

Import Mineral Sector Export Mineral SectorImport Others Export Others

Source: DNPM (Sumário Executivo 2005)


Players in the Brazilian Minerals Exploration Scene

Over 9000 companies acting in the mineral sector. 15,000 mining licenses and a further 30,000 active explorationlicenses.

Majors and mid-sized CompaniesCVRD, BHP Billiton, Rio Tinto, Anglo American, Alcan,Newmont, Xstrata, Anglo Gold, Tech Cominco, Codelco, Votorantim, Kimross and Yamana.

Junior CompaniesJaguar Mining, Castillian Resources, Vaaldiam Resources, Cougar Metals, Crescent Resources, Brazmin, Eldorado GoldCorporation, Aurizona Goldfields, Amarillo Gold, MetallicaResources, DIAGEM International Resources, BrazilianDiamond, Bontan Diamond, Majescor Resources, Lara Exploration.


New Deposits in Place

Cooper

Sossego (CVRD) 140 kton/yr Cu and 3.5 ton/yr Au from July 2004 onwards. 118 (CVRD) 36 kton/yr Cu cathode from 2008 onwards. US$ 232 M

investment.Cristalino (CVRD) 90 kton/yr Cu and 1.8 ton/yr Au from 2010 onwards.Alemao (CVRD) 155 kton/yr Cu and 8.4 ton/yr Au from 2006 onwards. Salobo (CVRD) 200 kton/yr Cu cathode and 5.0 ton/yr Au from 2010

onwards.Chapada (Yamana Gold) 51 kton/yr Cu, 6.1 ton/yr Ag and 2.8 ton/yr Au from

2005.Níckel

Niquelândia/Codemin III and Barro Alto (Anglo American).Expansions in Serra da Fortaleza and Americano do Brasil.Vermelho (CVRD) 290 Mton @ 0.8% Ni for production of 46 kton/yr (HPAL) Onça Puma (CVRD) 110 ktons/yr ferro-níckel from 2009 onwards.Mirabela (Mirabela Nickel) 170 kton/yr Ni concentrate from 2008 onwards.


Mineral Development Strategies

To improve geological and aerial geophysical knowledge

To diversify and to expand mineral production

To add value to mineral goods

To stimulate investments in infrastructure

To develop the Brazilian equipment industry and services


The Brazilian Geological Survey Program

Atividade Nº Folhas Área (Km2) % do País

Cartografia Geológica 1:1.000.000

46 8.500.000 100

Mapas Estaduais 10 5.490.748 65

Lev. Geológicos 1:250.000

8 144.000 1,7

Lev. Geológicos 1:100.000

84 252.000 3,0

Levantamentos Aerogeofísicos (Projetos)

25 875.168 10,3Dados CPRM: 24/10/2006 e 18/12/2006

Concluded Project 2003/2006

Brazilian Mineral Resources:Iron

1

23 4

5

Total Reserves (ton):

21 billion

Main Deposits

1 - Serra dos Carajás - PA2 - Quadrilátero Ferrífero- MG 3 - Urucum - MS4 - Rio Peixe Bravo - MG5 - Guanhães, Morro do Pilar -MG

Brazilian Mineral Resources:Manganese


Metal Contents (ton):

151 million

Main Deposits

1.Urucum - MS2.Buritirama, Igarapé Azul - PA 3.Quadrilátero Ferrífero - MG4.Conselheiro Lafaiete - MG 5.Guaçuí - ES6.Maraú - BA

2

41 3 5

6

7

54

1

6

23

Brazilian Mineral Resources:Chrome

Total Reserves (ton):Metal Contents (ton):

7 million

Main Deposits

1. Vale do Jacurici - BA2. Pindobaçu - BA3. Campo Formoso - BA 4. Dom Joaquim - MG5. Piuí-Nova Rezende - MG6. Mazagão - AP 7. Fazenda Lageado - GO

4

65

7

1 23

8

9

Brazilian Mineral Resources:Nickel

Total Reserves (ton):Metal Contents (ton):

8.3 million

Main Deposits

1. Puma - Onça - PA2. Vermelho - PA3. S.João do Piauí - PI4. Niquelândia - GO5. Barro Alto – GO 6. Americano do Brasil - GO7. Fortaleza de Minas - MG8. Morro do Níquel - MG9. Jacupiranga - SP

Brazilian Mineral Resources:Aluminum

Main Deposits

1. Trombetas-Oriximiná - PA2. Paragominas - PA3. Almeirim - AP4. Sudeste de Minas Gerais5. Poços de Caldas - MG6. Morro Redondo - RJ

4

1 2

3

5

6


4.3 billion


… the largest economy and mineral industry in the Latin America… the largest territory with favorable geology … producer of equipments, infrastructure and skilled labor force… a country with mining tradition… the largest consumer of minerals in the Latin America

Why to Invest in Brazil? Because Brazil is…


Brazil is Growing

Strong recovery on the supply and demand

Growth is impacting labor market

Industrial productions and formal employments are growing faster

Challenges to Long Term Economic Growth

To maintain effective control of inflation and fiscal policy

To reduce external vulnerability by increasing commercial surplus

To reduce investments cost

To attract external investments

Ministry of Mining and EnergySecretary of Mining and Metallurgy

Public Administration

Efficient legislation

Financing

Geological Information

SUSTAINABLE SUSTAINABLE DEVELOPMENT OF DEVELOPMENT OF

MINERAL MINERAL INDUSTRYINDUSTRY

Ministry of Mining and EnergySecretary of Mining and Metallurgy

USEFUL LINKS

http://www.mme.gov.brMinistry of Mines and Energy

http://www.cprm.gov.brBrazilian Geological Survey

http://www.dnpm.gov.brNational Department of Mineral Production

http://www.cetem.gov.brCentre of Mineral Tecnology

BRAZILIAN MINERAL SECTOR - INSG MINERAL SECTOR- ... Status of Brazil in the Global Mineral Market....

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Transcript of BRAZILIAN MINERAL SECTOR - INSG MINERAL SECTOR- ... Status of Brazil in the Global Mineral Market....