Brazil Mining Report Q2 2009

Transcription

1 Brochure More information from Brazil Mining Report Q Description: Brazil Mining Report provides industry professionals and strategists, corporate analysts, mining associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Brazil's mining industry Brazil boasts an illustrious mining industry. The Brazilian geology is endowed with a spectrum of metals and minerals bauxite, niobium, iron ore, manganese, nickel, tantalum, copper, tin and gemstones. In fact, Brazil is responsible for one-fourth of the world s iron ore output and is the fifth largest producer of tin around the globe. The country is the world leader in production of niobium. Moreover, after Canada, it is the largest producer of alluvial diamonds in the Americas. Other gemstones that are mined exhaustively in Brazil include topaz, Paraíba tourmaline, emeralds and amethyst. Global mining majors operating in Brazil include Australia s BHP Billiton and UK-based Rio Tinto, as well as the host nation s Vale (Companhia Vale do Rio Doce, previously known as CVRD). In November 2008, Reuters reported that although the global financial crisis was impacting the minerals sector in Brazil the bulk of a five-year US$57bn exploration programme would go ahead. However, the Brazilian Mining Institute (IBRAN) does believe that the investments may be delayed by 1-2 years. According to Paulo Camillo Penna, the head of IBRAN, the smaller mining companies would be hit the hardest. Indeed, the number of prospecting companies in the Amazon basin fell from 20 at the start of June 2008 to just five in November However, investment levels remain high among the larger firms, and Brazil already has large steel, mining and metals projects lined up. In November 2008, Brazil s Development Bank (BNDES) approved BRL1.42bn (US$615mn) in financing to global mining giant Anglo American in order for the company to boost nickel production. Anglo American will use the financing to construct a ferro-nickel plant in Barro Alto, in the state of Goias, and to expand the mine in the area. The centre is expected to be operational by 2010, and will have a capacity of 36,000 tonnes of nickel per year. BNDES is providing around 46% of financing for the project. Meanwhile, in February 2009, Anglo-Australian mining major Rio Tinto confirmed that it would sell a raft of South American assets worth US$1.6bn to Brazilian giant Vale, and that it was in discussions with Chinese state-owned aluminium producer Chinalco over the possible sale of up to US$9bn of assets and stakes in strategic operations. In a statement, Rio said that it had signed definitive agreements to sell Vale its undeveloped potash assets, largely comprising the Corumba iron ore mine in Brazil and the Potasio Rio Colorado potash project in Argentina The Companhia de Pesquisa de Recursos Minerais (CPRM) is responsible for basic geological mapping and maintaining mining statistics in Brazil. The country has fairly well-established laws for the management and exploitation of resources, and for the granting of licenses. But the need for permitting a higher number of private players to set shop has gathered voice, prompting the government to reconsider its rules and regulations concerning mining activity. Global overview On page 10 of this report, BMI examines the phenomenon of increased Chinese activity in the global mining sector and what this means for the industry moving forward. Industry Forecast The financial crisis has put pressure on Brazil's exports, with a reduction in the volume of shipments of its top commodities. Demand for iron ore has been particularly hard hit, as China's aggressive absorption of the mineral has fallen dramatically and Brazil's biggest mining company, Vale has been forced to cut output by some 30mn tonnes a year. However, BMI forecasts that Brazil's exports and imports will rise by an annual average of 12.4% and 13.7% respectively, between 2009 and 2013, to US$305.00bn and US$280.00bn. Meanwhile, despite a contraction in

2 real terms in 2008, BMI forecasts that the Brazilian mining sector will return to growth in By 2013, the market should be worth US$41.65bn, an increase of around 70%. Contents: Executive Summary SWOT Analysis Brazil Political SWOT Brazil Economic SWOT Brazil Business Environment SWOT Special Focus: Outlook For Global Mining Table: Biggest Chinese Acquisitions In Australia Since 2005 Table: Global Mining Top Five Companies By Market Capitalisation (US$mn) Table: Global Mining Key Players Future Investment Plans (selected projects) Industry Trends And Developments Overview Table: Mines In Brazil Latest Developments Regulatory Structure Key Projects Metals Bauxite And Alumina Gold Iron Copper Nickel Tungsten Uranium Minerals Coal Diamonds Business Environment Regional Mining Overview Americas Table: Americas Mining Business Environment Rankings Limits To Potential Returns Risks To Realisation Of Returns Legal Framework Labour Force Table: Brazil Demographic Indicators, Foreign Investment Policy Table: Latin America s Annual FDI Inflows, Political Environment Industry Forecast Scenario Metals Price Outlook Table: Stock Levels At London Metals Exchange Warehouses (tonnes) Global Industry Overview Regional Analysis Brazil s Mining Industry Forecasts Table: Brazil Mining Industry Forecast Competitive Landscape Table: Brazil s Mining Industry Key Players Company Monitor Vale São Luis Mining Jaguar Mining

3 Appendices Appendix A: Global Assumptions Global Table: Global Assumptions, Economic Activity Table: Global And Regional Real GDP Growth, (% change y-o-y) Table: Developed States Real GDP Growth, Table: Emerging Markets Real GDP Growth, Monetary Policy Table: Developed Market Exchange Rates, (average) Table: Emerging Market Exchange Rates, (average) Commodities Appendix B: Business Environment Ratings Ratings Overview Table: Mining Business Environment Indicators Table: Weighting Of Components Ordering: Order Online - Order by Fax - using the form below Order by Post - print the order form below and sent to Research and Markets, Guinness Centre, Taylors Lane, Dublin 8,

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