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INTRODUCTION

You have in your hands the 5th edition of the System of Information and analysis of the Brazilian Minerals Economy, organized by IBRAM – Brazilian Mining Association.

This study presents statistics and analysis of fourteen mineral commodities besides the con-solidation of information generated by the Brazilian Mining Industry.

In this edition, there are two new items: the first is a statistical analysis about the sector of Aggregates for Civil Construction, the second is a chapter reserved especially for Fertilizers, which are produced from minerals such as Phosphate and Potassium.

Each chapter corresponds to an ore. They are: Aggregates for Civil Construction, Bauxite, Kaolin, Copper, Tin, Iron, Phosphate, Manganese, Niobium, Nickel, Gold, Potassium, Uranium, Zinc and Fertilizers. The item Brazil corresponds to the consolidated information of the sector. In this study you have access to the most recent statistical and economic information from IBRAM with respect to Production Mineral Reserves, Market Prices, Data on Foreign Trade Investments in Production and Consumption of the mineral commodities that are evaluated.In the report Mineral Commodities of Brazil, the following information is given

- The total of Annual Brazilian Mineral Production Sold;- Ranking of the main minerals (by production quantity);- Changes in the Mineral GDP;- Information about Foreign Trade;- Main substances exported and imported;- Volume of the CFEM (Financial Compensation for Mineral Exploitation) collected;- Labor force employed by the Mining Industry;- Changes in the price of minerals; and- Investments forecast for the mineral sector.

The System of Information and Analysis of the Brazilian Mineral Economy may be accessed through the portal of IBRAM – www.ibram.org.br – which is always updated.

The Institute proposes to expand the portfolio of mineral substances, therefore it organizes the most complete data bank about Mineral Economy, capable of proving with numbers the benefits offered by the Mining Industry to the economy and well-being of Brazilians.

The English version of this document - Information and Analysis of the Brazilian Mineral Economy - is available on IBRAM’s website (www.ibram.org.br)

3

BRAZILInformation and Analysis of The Brazilian Minerals Economy | 5TH edition

Brazilian Mining Institute | 2010

Growth of Brazilian Mineral Production

Beginning in the year 2000, the greater demand for minerals, prin-cipally due to the high rate of world growth, boosted the value of the BMP which increased 400% over the comparison period 2000-2010 (PMB 2010 = US$ 40 billion).

By 2008, the increased amounted to 250%. There was shrinkage of 14% from 2008 to 2009 due to the global crisis, but it is estimated that the PMB will continue growing between 10% and 15% per annum over the next three years.

Mining Companies in Brazil.

The DNPM – National Department for Mineral Production recorded in 2009 by means of its Annual Mining Report 7,809 companies of which:

In 2010 The Brazilian Mineral Produc-tion, reached a new record totaling US40 billion which would represent an increase of 67 % when compared to the amount recorded in 2009: US$24 billion.

Therefore the BMP in 2010 will show a recovery over the retreat in 2009 caused by the effects of the interna-tional economic crisis, a phenomenon that resulted in a retraction in demand for raw materials produced by mining.

Region Companies

Midwest 917

Northeast 1.248

North 429

Southeast 3.341

South 1.874

2008 = US$ 28 billion

GROWTH OF BRAZILIAN MINERAL PRODUCTION

2010 US$ 40 billion2009 = US$24 billion

in US$ billions

Petroleum & Gas not included

Year

s

30

25

20

15

10

5

40

78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 09100

Variation 2000 / 2008 250%

BRAZIL IN THE WORLD

Area > 3 million km2

Population > 150 million inhabitants

GDP > US$800 billion

Canada

Australia

United Kingdom Germany Spain

Italy South Korea

France

Holland

Mexico

India

Japan

China

BRAZIL

USA

Russia

Bangladesh

Republic of Nigeria

Pakistan

Indonesia

4

BRAZIL Information and Analysis of The Brazilian Minerals Economy | 5TH edition


11.0

30

15.1

96

22.8

41

18.0

96

35.3

60

4.49

0

5.18

5

9.72

9

5.49

7

7.75

6

6.54

0 10.0

11 13.1

12

12.5

99

27.6

04

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

2006 2007 2008 2009 2010e

Expo

rts

Impo

rts

Surp

lus

Brazil has one of the largest endowments of minerals and is one of largest producers and exporters of ores.

The largest state producers of ores in 2010, according to the collection of the CFEM – Financial Contribu-tion for the Exploitation of Mineral Resources are:

MG – Minas Gerais (48%), PA – Pará (28%), GO – Goiás (5%), SP (4%), BA - Bahia (2.7%), MS - Mato Grosso do Sul (1.8%), SE - Sergipe (1.7%) and others (8.8%).

In 2010, the collection of the CFEM should hit another record: R$1billion, in other words, 46% greater than that for 2009, which was R$742 million.

The mining industry in Brazil and its importance for the commercial trade balance

The sector is responsible for more than 50% of the Brazilian commercial trade balance. Iron Ore occupies 1st place in the list of products that generate the largest incomes from Brazilian exports.

MINERAL PRODUCTION: GLOBAL POSITION OF BRAZIL

EXPORTER GLOBAL PLAYER EXPORTER SELF-SUFFICIENT IMPORTER

/ PRODUCEREXTERNAL DEPENDENCY

Niobium (1st)Iron ore (1st)Manganese (2nd)Tantalum (2nd)

NickelMagnesiumKaolinTin

LimestoneIndustrial diamondsTitanium

Metallurgical CoalPotassium

Graphite (3rd)Bauxite (2nd)Ornamental Stone

VermiculiteChromiumGold

CopperTungstenTalc

Phosphate DiatomiteZinc

SulphurRare Earths

STRATEGIC

Brazil is an important global player in the Minerals Sector. However it does display of dependency on some minerals that are essential for the Minerals Sec-tor. It is the fourth-largest consumer of fertilizers, but only contributes 2% of world production. Brazil imports 91% of its requirements for potassium and 51% for phosphates, mineral raw materials used in the manufacture of fertilizers.

The mining industry’s share in the Commercial Trade Balance

Millions of US$

Millions of R$

Expected 2010 Brazilian Balance = US$20 BillionBalance of the mineral sector = US$ 35,3 Billion (Exp) – US$7,7 Billion (Imp.) = US$27,6 Bi

Brazilian Balance in 2006 US$ 46 BillionMineral Sector: 14%

Brazilian Balance in 2007 US$ 40 Billion

Mineral Sector = 25%

Brazilian Balance in 2008 US$ 24 Billion


Brazilian Balance in 2009 US$25 Billion


2004 2005 2006 2007 2008 2009 2010CFEM 326 406 466 547 858 742 1.083

326406

466547

858

742

1.083

0

200

400

600

800

1000

1200

CFEM

5



Principal products exported and imported during 2010 (in amounts)*

Labor in the Mineral Sector

The total number of jobs in the mining sector of 2010 reached 160,000 work-ers.

Studies made by the National Secre-tariat of geology, Mining and Mineral Transformation of the Ministry of Mines and Energy show that the multiplier ef-fect for jobs is 1:13 in the mining sec-tor, in other words for each job in min-ing, another 13 jobs are created (direct jobs) throughout the productive chain, besides the indirect jobs.

Therefore one may consider that the mineral sector, in 2010, kept about 2 million workers working, without taking into account the jobs generated in the phases of exploration, prospecting and planning and the workers occupied in the panning areas.

Potassium Chlorate

28,4%Copper12,3%

Sulphur 3,2%

Zinc 2,0%

Others 8,0%

Coal43,8%

Exports % of value exported in US$

Imports % of value exported in US$

Gold 5,1%

Niobium 4,4%

Copper

Silicon

Manganese

Bauxite

Kaolin

Others

Granite

3,5%

1,3%

1%

0,8%

0,8%

0,7%

0,6%

Iron Ore81,8%

Suppliers Primary Transformation Total

Jobs 411112

21

11

14

0

2

4

6

8

10

12

14

16

Multiplier Effect: 1 : 13

Mineral Extraction

Importance of Mining for the Generation of Jobs

Fonte:National Secretary for Geology, Mining and Mineral Transformation of the MMEData: 2010

FOREIGN TRADE OF THE MINERAL SECTOR AMOUNTS IN MILLIONS OF US$

MAIN PRODUCTS EXPORTED AND IMPORTED 2009 2010

Mineral Exports Primary Goods 18,096 35,360

Iron Ore 13,247 28,912

Gold (in bars) 1,384 1,786

Niobium (iron-niobium) 1,060 1,557

Copper 803 1,238

Silicon 347 460

Kaolin 253 275

Manganese Ore 186 357

Bauxite 158 270

Tin 13 8

Lead 9 12

Granite 135 219

Others 501 268

Imports of Primary Mineral Goods 5,497 7,756

Coal 2,181 3,575

Potassium Chlorate 2,060 2,204

Copper 624 952

Zinc 71 157

Sulphur 197 246

Others 364 623

Balance of the Mineral Sector 12,599 27,604

6

BRAZIL Information and Analysis of The Brazilian Minerals Economy | 5TH edition


39.2

30

6.71

6

1.00

0 4.98

7

2.20

0

2.51

0

2.65

7

2.03

0

300

270

66 44

31.5

65

3.54

6

1.50

0

2.51

9

2.20

0

2.05

7

2.73

9

979

Alu

min

a

Bau

xite

New investments in the mineral sector 2010 to 2014: US$ 62 billion

Investments in the mineral sector 2009 to 2013: US$ 47 billion

Iron

Copp

er

Gol

d

Nio

bium

Coal

Man

gane

se

Vana

dium

Nic

kel

Phos

phat

e

Alum

iniu

m

IDH for the mining municipalities

The Index of Human Development for the Municipalities where mining takes place is greater than the average of the IDH of the States to which they belong.

Even far from the large urban centers or in areas were pockets of poverty are concentrated, the presence of a mineral undertak-ing is a concrete factor in stimulated sustainable development in these places.

The IDH is developed by the PNUD, a program of the United Na-tions.

The graph shows the growth in vol-ume of investments in the mining sec-tor in Brazil. The numbers generated by IBRAM are forecast for a period of five years into the future. The Institute predicts, based on information col-lected from the mining companies, significant investment of US$62 bil-lion for the period 2010-2014, which means a new record for mining.

Thus it is the private sector that in-vests the most in the Country, after all, it is on the average more than US$12 billion per year. This amount is periodically revised by IBRAM, as may be seen on the graph.

The expected value of US$62 billion between 2010 and 2014 represents an increase of 32% if compared to the previous period studied. The in-vestments apply to the most diverse minerals, with Iron Ore being the main one, the target of 63% of the total.

Investments of the mineral sector by mineral from 2010 – 2014 Billions of US$

2528

32

48

57

2009-201347

2010-201449

2010-201454

2010-201462

0

10

20

30

40

50

60

70

jan/

07

mar

/07

may

/07

jul/

07

sep/

07

nov/

07

jan/

08

mar

/08

may

/08

jul/

08

sep/

08

mar

/09

jan/

10

apr/

10

aug/

10

Investment in the mineral sector Billions of US$

EXAMPLES OF MINING MUNICIPALITIES AND THEIR RE-SPECTIVE IDH IN COMPARISON TO THE IDH OF THE STATEMunicipality -State Mineral State IDH Municipal IDH

Itabira - MG Iron 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 Itapemerim - ES

Ornamental Stone

0.767 0.770

Parauapebas - PA Iron 0.720 0.740

Barcarena - PA Bauxite 0.720 0.769

Presidente Figueiredo - AM Cassiterute 0.713 0.742Fonte: PNUD

7



Despite all the investment in produc-tion/extraction, Brazil still invests little in mineral exploration. In 2009 the Country received only 3% of total global private investment in explora-tion, being well behind countries with much smaller territories, such as Peru and Chile. Besides this, Brazil has only 30% of its territory mapped geologically.

The table shows the disparity of the total amount invested by countries evaluated in comparison with Brazil. The analysis takes into consideration the size of the territories, which allows one to see that the smaller countries (Peru, Chile and Mexico) or with territorial extent similar to Brazil, surpass Brazil (with the exception of Russia) in exploration investment.

Canada(US$ 1,2 billion)

16%

Australia (US$ 1 billion)

13%

Peru 7%

USA6%

Mexico 5%

Russia 5%

Chile 5%

China 4%

South Africa3%

Brazil (US$ 234 million)

3%

Other Countries33%

Private Investment in Mineral Exploration 10 leading countries Total: US$ 7,3 billion

Investments in mineral exploration in the world

Global Investment

(US$ 7.320.000)

Area (km2) x 1.000

Absolute Investments (US$)

Share of Investments (%)

Absolute Invest-ments/Area (US$/km2)

Brazil Investment vs Countries

Brazil 8547 234,000 3 27.4 1

Canada 9971 1,171,200 16 117.5 4.3

Australia 7682 951,600 13 123.9 4.5

Peru 1285 512,400 7 398.8 14.6

USA 9373 439,200 6 46.9 1.7

Mexico 1973 366,000 5 185.5 6.8

Russia 17075 366,000 5 21.4 0.8

Chile 757 366,000 5 483.5 17.7

China 9600 292,800 4 30.5 1.1

South Africa 1223 256,200 3.5 209.5 7.7

8

Information and Analysis of The Brazilian Minerals Economy | 5TH edition


AGGREGATES

AGGREGATES

Aggregates production

Mineral aggregates – basically sand and crushed rock, are the mineral substances that are most consumed in the world.

The term “mineral aggregates for civil construction” is used in Brazil to identify a segment of the mineral sector that produces gross of beneficiated mineral raw materials for immediate use by civil construction.

The forecast is that the production of aggregates in Brazil grows 56% be-tween 2007 and 2016. The sector was one of the few that did not feel the impact of the international crisis in 2008.

The increase in domestic investments in infrastructure for Brazil to host the World Cup in 2014 and the Olympics in 2016 will guarantee that demand for ag-gregates (sand, crushed rock, gravel and clay) will continue to grow up to 2022. Even with the heated-up market, consumption of aggregates per capita in Brazil is still low in comparison to other countries as the table below shows.

273 281316 331

358390

426 446 451 469 489 509 529583

610637

666696

731768

807

0

100

200

300

400

500

600

700

800

900

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

273 281316 331

358390

426 446 451 469 489 509 529583

610637

666696

731768

807

165 170 187 196 212 231 252 264 267 278 289 301 313 327 342 357 373 390 410 431 453

108 111 129 135 146 159 174 182 184 191 200 208 216256 268 280 293 306 321 337 354

0

100

200

300

400

500

600

700

800

900

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Aggregates Sand Crushed Rock

Growth in Production

THE IMPORTANCE OF AGGREGATESFor each kilometer of subway line construction, 50,000 tons of aggregates are consumed.

The construction of each paved highway kilometer con-sumes about 9,800 tons

In popular houses of 50m2 are consumed 68 tons

For buildings, 1360 tons are consumed for each 1000 m2

Source: Anepac

Millions of tons Millions of tonsGrowth in Demand and Forecasts for 2022

THE AGGREGATE BUSINESS COMPARED WITH PER CAPITAL2009 USA EU BRAZIL

Consumption 106 t 1.900 2.100 481

Per Capita 6.3 4.3 2.5

Source: Anepac

Millions of tonsDemand by region 2009

Source:Anepac

9



BAUXITE

Brazil is the third largest producer of Bauxite in the world with an estimated production for 2010 of 29 million tons. This volume amounts to 14% of world production of 205 million tons. Australia is the leader in production, with 31% of the total, followed by Chine with 18%.

The principal producing companies in Brazil: MRN (68%), Vale (12%), CBA (8.1%) and others (11.9%).

In Brazil, the principal producing States are: PA (85%), MG (14%) and others (1%).

Source: USGS/DNPM/ABAL

Reserves

World reserves of Bauxite total 34 billion tons. Brazil has the 5th largest reserve, with 3.8 billion tons of metallurgical baux-ite. The largest reserve is in Australia, fol-lowed by Guinea, Vietnam and Jamaica.

Consumption

Approximately 98% of the Bauxite con-sumed in Brazil is used in the manufacture of alumina, while the rest is shipped to the industries of refractories and chemical products.

The domestic per capita consumption of Bauxite grew 100% in this decade in Brazil, but is still very low when com-pared to other countries: 37Kg in the USA, 31Kg in Japan and 3.9Kg in Brazil.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

Word 135 138 144 146 159 169 177 190 205 201 205Brazil 14,00 14,00 14,00 19,30 22,00 23,00 22,80 24,00 26,60 28,00 29,00

135 138 144 146 159 169 177 190205 201 205

14,00 14,00 14,00 19,30 22,00 23,00 22,80 24,00 26,60 28,00 29,00

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Price 19,31 19,23 20,00 23,00 22,20 25,44 28,08 33,16 35,40 31,40 25,40

19,31 19,23 20,0023,00 22,20

25,4428,08

33,1635,40

31,40

25,40

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

Millions of tons

US$/ton

Production

Price

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Exports 6.324 5.320 5.453 7.642 7.290 7.508 5.309 5.784 6.220 3.037 6.800

6.324

5.320 5.453

7.6427.290 7.508

5.3095.784

6.220

3.037

6.800

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

in thousands of tonsExports

Source: Aliceweb

Source: Average Price FOB



KAOLIN

Brazil is the sixth largest producer of Kaolin, with approximately 2,400 tons in 2010, about 7.8% of world produc-tion that amounts to 31 million tons. The United States is the largest world pro-ducer with 17% of the total.

In Brazil the largest producing compa-nies are: Imerys Rio Capim Caulim SA (39%), Caulim da Amazonia SA (CAD-AM/Vale) (31%) Pará Pigmentos SA (PPSA/Imerys) (24%) and others (6%).

It should be mentioned that Brazil pro-duces the ore already beneficiated for use by the paper industry

Reserves

The reserves of Kaolin are abundant; four countries have 95% of an estimated total of 15 billion tons: USA 53%, Brazil 28%, Ukraine 7% and India 7%. Measured Bra-zilian reserves are 9.4 billion tons. They are very high quality reserves (whiteness and purity) for use in the industry of spe-cialty papers.

In 2010, Brazil exported 2.3 million tons generating foreign exchange earnings of US$ 280 million, which is an increase of 11% in relation to the previous year when US$ 253 million were earned.

The countries who import Brazilian Kaolin are: Belgium (21%), USA (20%), Japan (14%), Holland (13%) Finland (11%) and others (21%).

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

World 21.917 43.200 45.100 44.500 44.700 37.500 39.000 35.900 30.600 31.000Brazil 1.670 1.782 2.081 2.381 2.410 2.455 2.530 2.580 2.030 2.400

21.917

43.200 45.100 44.500 44.700

37.500 39.00035.900

30.600 31.000

1.670 1.782 2.081 2.381 2.410 2.455 2.530 2.580 2.030 2.400

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Price 103,00 119,00 122,00 121,00 110,00 114,00 128,00 128,07 123,75 121,55

103,00

119,00 122,00 121,00110,00 114,00

128,00 128,07 123,75 121,55

0,00

20,00

40,00

60,00

80,00

100,00

120,00

140,00

in thousands of tons

US$/ton

Production

Price

Source: Average Price FOB – Aliceweb

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Exports 1.438 1.445 1.853 2.149 2.074 2.400 2.364 2.750 2.044 2.303

1.438 1.445

1.853

2.149 2.074

2.400 2.364

2.750

2.0442.303

0

500

1.000

1.500

2.000

2.500

3.000

in tonsExports

Source: Average Price FOB – Aliceweb

Source: USGS and IBRAM


Brazilian Mining Institute | 2010 11

COPPER

Brazil is the fifth largest producer of Cop-per Ore with a production in 2010 estimat-ed at 230,000 tons. This total represents a growth of 6% in relation to 2009. A more significant increase is expected in order to reach 475,000 tons by 2014, with more projects going into production.

Chile is the world’s largest producer, with 34%, followed by Peru with 8%, the USA with 7.5% and China with 6%.

The main producers in Brazil are Vale (57%), Mineração Maracá (Yamana) (25%), Mineração Caraíba (13%) and others (5%).

Brazilian reserves of Copper stand at 17.3 million tons, dis-tributed among the following States:

The expected economic growth and urbanization in the Chinese economy over the coming years should guarantee high demand and prices for Copper in the coming years.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010World 13.200 13.700 13.600 13.600 14.600 15.000 15.300 15.600 15.400 15.800 16.200Brazil 36,80 32 30 28 101 132 148 205 222 217 230

13.200 13.700 13.600 13.60014.600 15.000 15.300 15.600 15.400 15.800 16.200

36,80 32 30 28 101 132 148 205 222 217 2300

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

in thousands of tonsProduction – contained copper

2004 2005 2006 2007 2008 2009 2010Exports 229 387 364 573 638 597 631Imports 541 403 536 483 473 423 468

229

387364

573

638597

631

541

403

536483 473

423468

0

100

200

300

400

500

600

700

in thousands of tonsOverseas Trade - contained copper

Source: USGS / DNPM / CSG and Index Mundi

In Brazil the main producing States are PA (51%), GO (38%) and BA (11%).

PA 83%

GO 7%

BA 5%

AL 3%

CE 2%

Reservas(estados)Reserves - States US$/ton

Source: LME / * Up to October

Just Copper concentrate

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*Price 1.700 1.500 1.600 2.200 3.000 4.600 5.500 7.900 5.600 7.300 8.400

1.700 1.500 1.6002.200

3.000

4.600

5.500

7.900

5.600

7.300

8.400

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

Price em US$/ton

Commercial Trade Balance

The trend of the commercial trade bal-ance of Copper for the coming years is positive due to an increase in domestic production as well as exports and a re-duction in imports.

Brazil is expected to achieve self-suf-ficiency in Copper by 2013 with the in-crease in production from new projects.

in tons



COPPER

12

CONSUMPTION

The largest consumer of Copper Ore is the metallurgical industry, principally the area of civil construction and cables and wiring.

The demand for copper for the production of wires and cables should increase 39% by 2016 in Brazil, possibly reaching 295 thou-sand tons of metal per year at the end of the period.

Besides the boom in civil construction lever-aged by the Government’s project for Hous-ing, the staging of the World Cup and the Olympic Games in Brazil will help to heat up the sector.

Civil Construction40%

Electrical Industry

25%

Machinery 15%

Durable Goods 10%

Transport 10%

Consumption

Per Capita

The per capital consumption of metallic Copper in Brazil is still low when compared to other countries.

7,885,68

4,403,00

1,471,23

0,289,30

6,644,62

3,912,01

0,46

0,00 2,00 4,00 6,00 8,00 10,00

European Union (EU – 27) North America

OceaniaMiddle East

ASEAN-5Latin America

AfricaJapan

USARussiaChinaBrazilIndia

IU -

Con

tinen

tal

PDB

RIC

S

Kg Cu per capita

Consumption per capita Kg Cu per capita



TIN

13

Brazil is the sixth largest producer of Tin Ore with 2010 production of 11,000 tons of contained Tin. This volume represents 3.5% of world production, which is 315,000 tons. China is the largest producer with 115,000 tons.

The main producer states are Amazonas and Rondonia with about 60% and 40% re-spectively.

2002 2003 2004 2005 2006 2007 2008 2009 2010World 249 207 264 290 302 300 299 307 315Brazil 12,00 12,20 12,20 11,73 9,50 12,00 11,00 10,00 11,00

12,00 12,20 12,20 11,73 9,50 12,00 11,00 10,00 11,00

249

207

264290 302 300 299 307 315

0

50

100

150

200

250

300

350Produção

Fonte: USGS/DNPM



Production

Source: USGS/DNPM

Source: LME

Metallic tin

Reserves

Brazil has the fourth largest reserves of contained Tin, about 11% of the total. Its re-serves are found in the Amazon region: the Mineral Province of Mapuera (Pitinga mine), in Amazonas and the Estaniferous Province of Rondonia (Bom Futuro, Santa Bárbara, Massangana and Cachoeirinha).

World reserves are distributed this way: Asia 57%, (China 30.4%, Indonesia 14.3%, Malaysia 8.4%); the Americas 32% (Brazil 11%; Peru 13%; Bolivia 8%); Europe 6.6%; Australia 2.7% and other countries (1.7%).

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Price 5.429, 4.447, 4.888, 8.481, 7.385, 8.764, 14.100 10.400 16.760 26.700

5.429,004.447,00 4.888,00

8.481,007.385,00

8.764,00

14.100,00

10.400,00

16.760,00

26.700,00

0,00

5.000,00

10.000,00

15.000,00

20.000,00

25.000,00

30.000,00Preços

Fonte: LME

US$/tonPrice

Consumption

The domestic demand for metallic Tin comes from five important sectors: the steel industry for the manufacture of galva-nized sheeting for the packaging industry of foodstuffs and beverages, solder-making industry, chemical industry, pewter objects (light alloy metals, bronze and others.

2004 2005 2006 2007 2008 2009 2010e

Exports 5.830 5.558 4.677 6.042 6.693 3.873 1.690Imports 2128 2394 2122 1728 890 381 700

2128 2394 21221728

890381

700

5.830 5.558

4.677

6.0426.693

3.873

1.690

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000Comércio Exterior (Estanho Metálico)

Foreign Trade

Galvanized Plating

39%

Solders 28%

Pewter 7%

Bronze 7%

Chemicals 7%

Others 12%

ConsumoConsumption

The reduction in exports of Tin is due to the United States, who is the main destination of Brazilian exports, reduced its purchases. Today the biggest buyers of Tin from Brazil are Holland and Mexico.



IRON

Brazil is the second largest producer of Iron Ore. Its 2010 production is esti-mated to be 370 million tons, which is equal to 16% of the world total (2.3 bil-lion tons).

According to the Conference of United Nations for the Trade and Development, Brazil was the second largest producer of Iron Ore in 2009, with 310 million tons, behind only Australia who produced 394 million tons. India produced 257 million tons and China, who once was the larg-est produced, ranked fourth, with 234 million tons. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*

World 1.060 1.060 1.080 1.160 1.340 1.540 1.712 1.900 2.200 2.300 2.400Brazil 212,52 236,92 214,56 263,77 262,03 278,14 317,00 355,00 351,00 310,00 370,00

212,52 236,92 214,56 263,77 262,03 278,14 317,00 355,00 351,00 310,00 370,00

1.060 1.060 1.080 1.1601.340

1.5401.712

1.900

2.200 2.300 2.400

0

500

1.000

1.500

2.000

2.500

3.000Produção

Fonte: Sinferbase/USGS/DNPM

in millions of tonsProduction

Source: Sinferbase/USGS/DNPM

Reserves

Measured and indicated reserves of Iron Ore in Brazil topped 29 billion tons, place in the country in fourth place in relation to global reserves of 160 billion tons.

However, considering that the re-serves in terms of contained Iron in the ore, Brazil stands out on the in-ternational scene. This fact is due to the high grade of iron in the Hematite ores (60%) predominant in Pará and Itabirite (50% Iron) predominant in Minas Gerais.

Demand for Iron ore

Studies by the Credit Suisse Bank show that for the coming years there will be a shortfall of 90 million tons of Iron Ore. The market will come into balance be-tween supply and demand only in 2013.

Source: Credit Suisse Estimates

-60

-40

-20

0

20

40

60

80

2007 2008 2009 2010 2011 2012 2013 2014 2015

Déficit

Fonte: Credit Suisse Estimates

Milhoes de toneladas

Surplus

millions of tonsTransoceanic market for iron ore

Before 2008 benchmark prices Brazil/ China. After 2008 Average spot price in China

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Price 28 29 29 31 37 64 76 83 138 80 140

28 29 29 3137

6476

83

138

80

140

0

20

40

60

80

100

120

140

160Preços (Tonelada Seca Longa em US$)

Nota: Antes de 2008: preços benchmark – Brasil/China. Após 2008: Preço médio/ano spot na China

per Long Ton Dry in US$ Price

The main producing states in 2010 are MG (67%), PA (29.3%} and others (3.7%).



IRON

Brazilian exports of primary goods of Iron in 2010 reached 311 million tons, with a FOB value of US$29 billion.

This represents an increase of 17% in quantity and 119% in value of ex-ports in comparison with 2009.

During the period 1960-2000, chang-es occurred in the global geography of iron ore commerce. Up to 1970, the European countries were the major producers and became im-porters. The large centers of pro-duction began to be located in Brazil, Australia and India. France with the main exporter in 1960, in 2000 it im-ported almost 20 Mt/year.

Source: Projeto Estal RT 18 - MME

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Exports 157 156 167 175 211 224 242 269 282 266 311

157 156 167 175

211224

242269

282266

311

0

50

100

150

200

250

300

350Comércio Exterior

in millions of tons Exports

China 45,0%

Japan 12,5%

Germany7,70%

South Korea3,3%

France 3,2%

Nederlands 2,8%

Italy 2,8%Others 22,7%

Main buying countries of Brazilian Iron Ore in 2010

Forecasts for iron ore production in Brazil up to 2014

COMPANY PER YEAR 2011 2012 2013 2014

Mhag 500 1.000 4.000 5.000

Arcelor Mittal Serra Azul 5.000 5.000 10.000 15.000

Mineração Corumbaense 4.500 5.000 5.000 10.000

Usiminas (J. Mendes) 8.000 10.000 12.000 20.000

V&M Mineração 4.000 4.000 4.000 4.000

MMX 13.000 13.000 16.500 32.500

Anglo Ferrous 5.000 5.000 26.500 35.000

CSN 40.000 84.000 87.000 105.000

VALE 350.000 400.000 450.000 460.000

TOTAL 430.000 527.000 615.000 688.514

Outros 20.000 30.000 40.000 40.000

Ferrous Resources 1.000 1.000 2.000 25.000

Bahia Mineração - - 15.000 20.000

TOTAL 450.000 557.000 655.000 728.514Source: IBRAM

In 2010 Brazil exported 45% of all of its ore to Chine, a quantity of 140 million tons.



PHOSPHATES / POTASSIUM / FERTILIZERS

Brazil is the sixth largest producer of Phosphate, with production of about 6 million tons of concentrate in 2010. This volume represents 3.7% of estimated world production, at 160 million tons.

With the new investments expected, pro-duction should reach 11 million tons per year over the next four years.

World production of phosphate Rock is concentrated in seven countries, notably China, the United States, Morocco, Rus-sia, Tunisia, Brazil and Jordan. China is the leader in production with 55 million tons. 2002 2003 2004 2005 2006 2007 2008 2009 2010e

World 135 137 141 147 142 147 167 158 160Brazil 5,00 5,50 5,70 5,60 5,90 6,10 6,70 5,60 6,00

5,00 5,50 5,70 5,60 5,90 6,10 6,70 5,60 6,00

135 137 141 147 142 147

167158 160

0

20

40

60

80

100

120

140

160

180Produção(Concentrado fostático)

in millions of tonsProduction - Phosphate concentrate

Reserves

Brazil has 337 million tons in reserves of contained ore. These reserves are concentrated principally in the States of Minas Gerais, with 68%, followed by Goiás with 14%, São Paulo with 6% and others with 12%.

Consumption

Phosphate Rock is used principally for the manufacture of fertilizers, although it is also a raw material for the fabrication of soap, detergents and other cleaning pro-duction and animal feed.

Brazil is the 4th world consumer of fertiliz-ers, being behind only China, India and the United States.

2002 2003 2004 2005 2006 2007 2008 2009 2010Price 71,80 76,80 98,30 140,00 105,00 121,00 192,00 92,00 95,00

71,80 76,8098,30

140,00

105,00121,00

192,00

92,00 95,00

0,00

50,00

100,00

150,00

200,00

250,00Preços - FOSFATO

Fonte: FOB

US$/tonPrice

Source: Aliceweb

USA14%

Russia21%

China21%

Others- 10%

Morocco24%

Israel21%

Origin of brazilian phosphate imports

Source: IFA 2008



IRONPHOSPHATES / POTASSIUM / FERTILIZERS

Brazil is the 10th largest producer of Po-tassium, with a production of approxi-mately 650,000 tons in 2010. This volume represents 2% of the estimated world production of 25 million tons. Canada is the leader in production with 7 million tons.

The production of fertilizer Potassium in Brazil, which began in 1985, is restricted to the mine/mill complex of Taquari-Vassouras and belonged to Petrobras Mineração S/A Petromisa until October, 1991. When Petromisa was closed down, the mining rights reverted to Petrobras through the assignment of rights.

Petrobras then leased the mining right to Vale, which included the mine/mill com-plex of Taquari-Vassouras for a period of 25 years.

Reserves

In global terms, Canada has 52% and Russia has 21%. They are the two main countries with reserves, as well as the largest producers in the world with about 405 of the total produced in 2009. Brazil occupies the 5th position, with re-serves of 308 million tons of contained ore, which is 3.6% of world reserves.

2004 2005 2006 2007 2008 2009 2010Price 144,00 192,00 176,00 222,00 567,00 603,00 374,00

144,00192,00 176,00

222,00

567,00603,00

374,00

0,00

100,00

200,00

300,00

400,00

500,00

600,00

700,00Preços - POTÁSSIO

Fonte: Aliceweb

US$/tonPrice

Source: Aliceweb

Canada34%

Russia and Belarus41%

Spain1%

Germany12%

Israel12%

Origin of brazilian potassium imports

Source: IFA 2008 e Anda

Imports

The world crisis of 2009 relieved Brazilian imports of potassium chlorate, which set a record in imports of US$3.8 million for 2008, since the country does not produce all that it needs.

The quantity imported in 2010 reached 6 million tons, 76% greater than the volume in 2009, which was 3.4 million tons.

2004 2005 2006 2007 2008 2009 2010Imports 6.788 4.983 5.400 6.762 6.751 3.417 6.000

6.788

4.9835.400

6.762 6.751

3.417

6.000

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000Comércio Exterior - POTÁSSIO

in thousands of tonsImports



Consumption

The main use of Potassium Chlorate is fer-tilizer, with the agricultural sector respon-sible for the largest demand of this product.

Potassium Sulphate and Potassium bi-sulphate and Magnesium are also used, to a lesser extent, in agriculture for specific crops. In world terms, more than 95% of the production of Potassium is used as fertil-izer, 90% of which is in the form of Potas-sium Chlorate. The remainder is used by the chemical industry.

Brazil is the largest consumer of the ore. Brazilian production, although it has grown over the last few years, is still much below domestic demand. The production supplies only 9% of requirements. The remainder, 91% is imported.

The producers of fertilizers have been pleading for many years for a fiscal reform that could be equal tax treatment for the imported and do-mestic product.

The imported product has a 0% duty and does not pay ICMS, contrary to the domestic product, which has the burden of interstate operations with rates as high as 8.4% and full tax load (IR, PIS, Cofins, ICMS and CFEM) which amounts to 30.8% for Phos-phate and 41.60% for Potassium.

The mining companies that supply the raw materials for fertilizers are making efforts to make the country less dependent on the importation of fertilizers and are seeking, with their investments to guarantee the security necessary for the supply of raw materials. With this, they expect to contribute to reduce imports and generate jobs for Brazilians, longtime commitments of a sector committed to the development of the country.

Fertilizers

2,5 M t 3,2 M t 3,7 M t2,5 M t 3,2 M t 3,7 M t2,5 M t 3,2 M t 3,7 M t2,5 M t 3,2 M t 3,7 M t8%

54%54%

92%92%92%

46%46%46%46%

FósforoNitrogênio Fósforo

92%

8%

46%

27%27%27%27%

73%73%73%73%

ProdutcionImports

Nitrogen Phosphorus Potassium

in thousands of tonsBrazilian Consumption 2008

Source: ANDA and SIACESPNote: Production of phosphorus includes pro-duction with international raw materials

World ranking in Fertilizer Consumption

Position NPK Share Nitrogen Share Phosphorus Share Potassium Share

1st China 30% China 30% China 37% China 23%

2nd India 13% India 14% India 14% USA 17%

3rd USA 12% USA 12% USA 11% Brazil 13%

4th Brazil 6% Pakistan 3% Brazil 8% India 9%

5th Pakistan 2% Brazil 2% Australia 3% France 3%

Millions of tons of nutri-

ents157.3 92.4 37.6 27.2

Share of Brazil:Consumption: 6% 2% 8% 13%

Production: 2% 1% 4% 1%

Source: IFA, ANDA

millions of tons of nutrientsLocations of phosphate and potassium mines in Brazil

PHOSPHATES / POTASSIUM / FERTILIZERS



IRONGOLD

19

Brazil is the 12th largest producer of Gold, with production estimated at 61 tons in 2010. China is the largest pro-ducer at 300 tons (12% of global produc-tion), followed by Australia with 9.3%, and South African and the United States with 9% each.

The main producing companies in Bra-zil (data from 2009): AngloGold Ashanti (275), Yamana Gold (25%), Kinross (25%) and other companies (14%) with panning production (9%).

In Brazil, the main producer States are (data from 2010): MG (64%), GO (11%), BA (11%) and PA (3%).

Reserves

The main reserves of Gold are located in South Africa (6,000 tons) which is equiva-lent to 14% of the world total.

The measured and indicated reserves of Gold in Brazil amount to 1,590 tons or 3.3% of global reserves of ore, distributed in the states of Pará (41.5%), Minas Gerais (37%), Goiás (6.5%), Bahia (6.3%) and oth-ers (8.7%).

Exports

The exportation of Gold in bars set a record in value in 2010, bringing foreign exchange earnings to the country of almost US$2 billion. Gold is the second most important mineral exported by Brazil, just behind Iron Ore.

The countries that import Gold from Brazil are Great Britain (45%), Switzerland (32%), the Gulf Emirates (12%), the United States (9%) and Canada (2%).

2004 2005 2006 2007 2008 2009 2010e

World 2.430 2.470 2.460 2.380 2.260 2.350 2.400Brazil 47 38 44 48 54 57 61

2.430 2.470 2.460 2.3802.260 2.350 2.400

47 38 44 48 54 57 610

500

1.000

1.500

2.000

2.500

3.000Produção (ouro contido)

Fonte: DNPM/USGS

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*Price 272,00 310,00 364,00 410,00 445,00 604,00 836,00 865,00 1104,0 1360,0

272,00 310,00 364,00 410,00 445,00

604,00

836,00 865,00

1104,00

1360,00

0,00

200,00

400,00

600,00

800,00

1000,00

1200,00

1400,00

1600,00Preços (última cotação/ano)

*até outubro

in tons

in tons

Production – contained gold

Price

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Exports 43 39 36 29 32 31 33 36 37 45 46

4339

36

2932 31

3336 37

45 46

0

5

10

15

20

25

30

35

40

45

50Comércio Exterior

Exports

Source: DNPM/USGS

last quotation of the year in US$

Up to October




NIOBIUM

Brazil is the largest producer of Niobi-um with a production of approximately 80,000 tons in 2010 or 96% of the global total. Domestic production has been growing due to the heating up of the market for ferro-alloys, caused by the rapid expansion of the GDP of Asian countries and the increase in world pro-duction of raw steel.

In Brazil, the main producing states (according to the CFEM 2010) are: MG (56.7%), GO (41.9%), AM (1.4%)

Reserves

Brazil has the largest reserves in the world of Niobium followed by Canada and Australia.

The measured reserves of Niobium (Nb2O5) approved by the DNPM – National Department of Mineral Production – total 842,460,000 tons, with an average grade of 0.73% Nb2O5 and are concentrated in the states of Minas Gerais (75.08%) in Araxá and Tapira; Amazonas (21.34%) in São Gabriel de Cachoeira and Presidente Figueiredo and in Goiás (3.58%) in Catalão and Ouvidor.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

World 38.058 42.396 44.279 41.858 43.249 61.709 72.500 85.000 62.000 78.000 83.000Brazil 35.458 38.796 40.379 38.058 39.149 58.009 68.850 81.922 60.692 75.000 80.000

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

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

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Price 13.197 12.826 12.578 12.376 13.501 13.512 22.764 32.987 23.357 23.091

13.197 12.826 12.578 12.376 13.501 13.512

22.764

32.987

23.357 23.091

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000Preços Liga ferronióbio - US$/ton-FOB Base Exportação

F onte : Aliceweb

in tons

in tons

Production

Price

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Exports 27.927 28.429 31.256 33.688 35.767 51.672 59.345 71.856 72.771 45.391 66.947

27.927 28.42931.256 33.688 35.767

51.672

59.345

71.856 72.771

45.391

66.947

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000Comércio Exterior em toneladas

F onte : Aliceweb

Exports

Source: IBRAM

* Prices of ferro-niobium ingots

Base Exports Source: AliceWeb

Source: AliceWeb

Exports

The product most exported by Brazil is Ferro-Niobium with more than 90% of the exports of Niobium and deriva-tives. In 2010, the total amount export-ed was 66.947 tons, earning US1.5 bil-lion for the country (Source AliceWeb).



IRONNIOBIUM

Consumption

The growth in demand for more efficient raw materials is making the so-called rare minerals or strategic minerals in greater evidence.

Brazil uses 100 grams in each ton of steel. The big opportunity in expand business is with China, which despite being the largest buyer of Niobium in the world, still has a low index of about 25 grams per ton.

The CMMBB, which holds reserves which are estimated to last for 200 years, is expecting growth of 60% in sales of Niobium by 2015. The volume should increase to 100,000 tons.

Estimates are based on the low adhesion to the product. Demand for Niobium is greater in the countries that are more developed technologically, where 80 to 100 grams of this material is used for each ton of steel.

The most significant increase is still to be seen, especially due to the concerns about sustainability. Ferro-Niobium could, for example, help produce lighter cars, which consume less fuel.

An average car has between 800 and 1000 kilograms of steel. If 100 to 150 kilograms was removed from the auto-mobile, it would reduce consumption of 1 liter of gasoline for each 200km traveled. In big infrastructure projects, it is possible to use stronger steel and build the same structure 60% lighter.



NICKEL

Brazil is the 10th largest producer of Nickel contained in ore, with 67,116 tons in 2008, 56,950 tons in 2009 and about 74,000 tons in 2010. Russia is the largest producer with 19% of the total volume, followed by Canada with 13%, Indonesia with 13% and Australia with 12%.

In Brazil, the main producing states (ac-cording to the CFEM collection 2010) are: BA (46%), GO (42%) and MG (12%).

Reserves

Reserves measured and indicated reserves of Nickel in Brazil amount to 8.7 million tons or ore contained. They rank in fifth place among the biggest world reserves, with 12% of the total, that is 71 million tons. Australia has the largest reserves: 37%.

Consumption

The largest consumers of Nickel are the manufacturers of stainless steel, which has seen significant growth over the last ten years.

The remainder is used for the production of different types of steel, such as galva-nized products and white metal.

World consumption amounted to 1.31 million tons of Nickel in 2008, under the strong influence of Chine. In 2009, with the crisis, the demand dropped slightly but the expectations of specialists forecast 1.5 million tons for around 2015. For 2011, expectations are for an increase of 7% in demand for Nickel, with an increase of 12.5% in the production of stainless Steel.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

World 1.320 1.370 1.360 1.360 1.460 1.500 1.530 1.660 1.570 1.430 1.500

1.320 1.370 1.360 1.3601.460 1.500 1.530

1.6601.570

1.4301.500

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800Produção Mil toneladas/ano - Ni contido no Minério

F onte: USGS/DNPM

in thousands of tons per yearProduction

Source: USGS/DNPM.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Price 7.000 6.000 7.000 16.800 15.000 13.500 33.500 25.800 11.000 18.475 24.105

7.000 6.000 7.000

16.80015.000

13.500

33.500

25.800

11.000

18.475

24.105

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000Preços

Fonte : London Metal Exchange - LME

Price

Source: London Metal Exchange-LME

2004 2005 2006 2007 2008 2009 2010*Exports 25.036 30.451 28.867 34.922 29.940 30.321 39.157Imports 15.950 9.902 8.236 11.703 13.265 4.477 2.910

25.036

30.451 28.867

34.922

29.940 30.321

39.157

15.950

9.902 8.23611.703 13.265

4.477 2.910

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000Comércio Exterior em toneladas

Fonte : Aliceweb

Exports

Source: AliceWeb

Overseas Trade

The tendency in the trade balance of Nickel for the coming years is favorable.

The difference between the volume ex-ported and the volume imported has been increasing since 2004.

Brazil imports the Alloys of Ferro-nickel and other raw forms of unalloyed Nick-el. Brazil exports the products of Nickel Cathode Slabs and non-alloyed Nickel.

in tons



IRONNIOBIUMMANGANESE

vBrazil is the second largest producer of Manganese Ore, with approximately 1,7 million tons of concentrate in 2010. This number represents 18% of world produc-tion, which is 10 million tons. China is the largest producer of this mineral with 24% of the total produced.

Reserves

The reserves of Manganese in Brazil amount to 235 million tons of contained ore. The State of Minas Gerais has the largest reserves with 87% of the total, fol-lowed by Mato Grosso do Sul with 6.5%, Pará with 4.3% and other states with 2.2%.

Exports

The exports of Manganese in 2010 should reach 2.5 million tons, an increase of 56% in relation to the previous year when 1.6 million tons were exported. The amount imported in 2010 should be just 8,000 tons.

The Country has a positive trade balance in Manganese. In 2010, the positive trade balance (exports – imports) should be ap-proximately US$400 million FOB.

Consumption

Manganese places a fundamental role in the development of many processes for the production of steel, because it is the fourth most used metal in the world, after Iron, Aluminum and Copper and it is pres-ent in our day to day activities such as still used in automobiles and civil construction. Thus, about 90% of all Manganese pres-ently consumed go to the steel mills as an element in alloys.

On the scale of utilization of Manganese ore, the second most important market is the battery industry. There is another mar-ket that is little known since this mineral is in some vitamins, because Manganese is essential for all forms of light, including the human being who should consume between 1 to 5 mg of this mineral per day.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

Production 1.924 2.041 2.153 2.904 3.116 3.192 3.572 1.866 2.400 1.700 1.790

1.924 2.041 2.153

2.9043.116 3.192

3.572

1.866

2.400

1.700 1.790

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000Produção

Fonte: LME

in thousands of tonsProduction

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e

Exports 1.323 1.066 1.254 2.038 2.026 1.134 1.288 2.034 1.608 2.502

1.323

1.0661.254

2.038 2.026

1.1341.288

2.034

1.608

2.502

0

500

1.000

1.500

2.000

2.500

3.000Exportação

Exports

Source: LME

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Price 45,54 45,99 45,46 53,40 77,61 48,99 86,48 302,80 115,80 156,20

45,54 45,99 45,46 53,4077,61

48,99

86,48

302,80

115,80

156,20

0,00

50,00

100,00

150,00

200,00

250,00

300,00

350,00Preços

Fonte: Aliceweb

Price

Source: Aliceweb

Prices for US$ per ton. FOB




309

342

423

435

546

817

1.243

0 200 400 600 800 1000 1200 1400

Brazil

USA

Canada

South Africa

Russia

Kazakhstan

Australia

Reservas mundiais em mil toneladas

Fonte: World Nuclear Association

World reserves

Source: World Nuclear Association


Brazil is the twelfth largest producer of Uranium, according to the Indústrias Nucleares do Brasil (INB) which holds the state monopoly in this mineral. Pro-duction amounts to about 390 tons/year of U308 (Uranium concentrate), which could achieve a nominal capacity of 400 tons/year. The production serves the requirements of the nuclear generating plants of Angra I and Angra II, however the demand of the country is 430 tons/year.

In Brazil, the principal producing state is BA (100%), however INB is going to begin uranium extraction in Santa Qui-téria (CE). This mine has a capacity to produce 1,100 tons of Uranium in 2010 and another 1,600 tons in the future al-lowing Brazil to export the remaining 1,000 tons.

Canada is the largest world producer, at 10,000 tons/year, followed by Australia, with 7,600 tons/year, Kazakhstan, with 5,200 tons/year. These three countries are responsible for more than half the production of Uranium. Kazakhstan announced that it intends to double production over the next three years to 15,000 tons, making it the world’s larg-est producer. Global demand for Urani-um is 67,000 tons/year and expectations by the WNA-World Nuclear Association – is that demand will double by 2030.

Reserves

Brazil has only 30% of its territory ex-plored, so that the Country has the sev-enth largest reserve in the world of Ura-nium (309,000 tons).

Estimates exist that Brazil has more than 800,000 tons, which would raise the Coun-try to having the third largest reserve of Uranium in the world. In order for this to become economically viable is to make the state monopoly more flexible.

390

3.067

3.200

3.450

5.280

7.600

9.820

0 2000 4000 6000 8000 10000 12000

Brazil

Namibia

Russia

Niger

Kazakhstan

Australia

Canada

ton / ano(concentrado de urânio)

Fonte: World Nuclear AssociationFonte: World Nuclear Association

ton per yearProduction (Uranium concentrate)

Source: World Nuclear Association

PRODUCTION OF URANIUM CONCENTRATE

Countries State-owned

Private Enterprise

Australia 7,600

Brazil 400

Canada 2,620 7,200

China 750

Czeck Republic 375

India 230

Kazakhstan 3,760 1,520

Namibia 107 2,960

Niger 2,600 850

Russian Federation 3,200

South Africa 520

Ukraine 808

United States 1,805

Uzbekistan 2,260

TOTAL 17,110 22,455

URANIUM



IRONNIOBIUMURANIUM

Price

The price of Uranium on the international market has grown more than 15 times since 2000. The price jumped from US$7/lb to US$48/lb in 2010. In June, 2007, the price reached US135/lb.

Consumption

The largest consumers of Uranium are nuclear power plants. Uranium is used to feed the reactors for the generation of electrical energy, which is responsible for 16% of the world’s electrical energy.

The growth in population and the world economy has been generating a growing demand for energy.

The rise in process for petroleum and gas and the concerns with respect to the emis-sion of carbon dioxide and global warming show the need for another matrix for gen-eration of energy, which minimizes the ef-fects caused by the most utilized sources presently: petroleum and coal.

Uranium is a strong alternative source of energy, in the form of fuel for nuclear en-ergy. France, for example generates 78% of its electric energy with nuclear power plants.

Uranium as a source of energy

Energy Equivalent of Uranium

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Price 7,00 5,00 10,00 10,00 12,00 30,00 40,00 110,00 47,00 45,00 48,00

7,00 5,0010,00 10,00 12,00

30,0040,00

110,00

47,00 45,00 48,00

0,00

20,00

40,00

60,00

80,00

100,00

120,00Preços US$/LbPrice

Source: Aliceweb

in US$/Lb

ATOMIC GEOGRAPHY – MAIN CONSUMER COUNTRIES

Country % of nuclear energy generation Number of active nuclear generating plants

1 USA 19.4 104

2 France 78.0 59

3 Japan 30.0 54

4 England 18.4 32

5 Russia 15.9 30

6 Canada 15.0 20

7 Germany 31.8 19

8 Korea 38.0 16

9 India 2.8 14

10 Ukraine 51.1 13

24 Brazil 2.2 2Source: International Nuclear Safety Center e WNA

Potential for Power 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



ZINC

Brazil is the twelfth largest producer of Zinc Ore, with an approximate produc-tion of 175,000 tons of concentrate in 2010. This volume represents 1.5% of world production, which is 11.1 million tons. China is the largest producer with 2.8 million tons in 2010 or 25% of global production. Peru is next with 13%, fol-lowed by Australia with 12%

Reserves

Measured and indicated reserves of Zinc in Brazil amount to 6.5 million tons, mostly in the State of Minas Gerais (88%). World reserves total 200 million tons. China and Australian have the largest reserves with 16.5% and 10.5%, respectively.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*World 8.730 8.850 8.360 9.010 9.600 9.800 10.000 10.500 11.600 11.100 11.700Brazil 100 108 134 159 152 169 185 194 174 169 175

8.730 8.850 8.3609.010

9.600 9.800 10.000 10.50011.600

11.10011.700

100 108 134 159 152 169 185 194 174 169 1750

2.000

4.000

6.000

8.000

10.000

12.000

14.000Produção (mil toneladas Zinco concentrado)

2002 2003 2004 2005 2006 2007 2008 2009 2010Price 900,00 1.000,0 1.400,0 2.100,0 4.330,0 2.385,0 1.090,0 2.545,0 2.350,0

900,00 1.000,001.400,00

2.100,00

4.330,00

2.385,00

1.090,00

2.545,002.350,00

0,00

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

5.000,00Preços em US$/ton

F onte: LME

in thousands of tons / yearProduction – zinc concentrate

Price

Source: IBRAM

US$/ton

Consumption

Zinc is widely used, notably in the gal-vanization process (anti-corrosion), in the production of metallic parts, mainly steel. This use corresponds to 49% of domestic consumption.

Zinc is also a raw material for metal-lic alloys, besides being used in paints, dry cells and others. According to the Instituto Aço Brasil, the main con-suming sectors for hot-plated zinc plates and electro-galvanized plate are: automobiles (48%), civil construc-tion (10.6%), domestic and commer-cial utensils (6.5%) notably home ap-pliances.

Staff

The Brazilian Mining Association

Executive Board of Directors

President: Paulo Camillo Vargas Penna

Director of Mining Affairs: Marcelo Ribeiro Tunes

Director of Environmental Affairs: Rinaldo César Mancin

Directive Council

President: José Tadeu de Moraes

Vice President: Luíz Eulálio Moraes Terra

Headquarters

SHIS QL 12 Conjunto 0 (zero) Casa 04 – Lago Sul – Brasília/

DF – CEP 71630-205 – Fone: (61) 3364.7272 / Fax: (61) 3364.7200

e-mail: [email protected] – Portal: www.ibram.org.br

IBRAM Amazônia

Av Gov. José Malcher, 815 s/ 313/14

Ed. Palladium Center – CEP: 66055-260 – Belém/PA – Fone: (91)

3230.4066/55 e-mail: [email protected]

IBRAM/MG

Rua Alagoas, 1270, 10º andar, sala 1001,

Ed. São Miguel, Belo Horizonte/MG – CEP 30.130-160 – Fone: (31)

3223.6751 – e-mail: [email protected]

Editorial Production

Profissionais do Texto – www.ptexto.com.br

Graphic Design

Verlindo Design - www.verlindo.com

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