Snapshot of the mining industry in Brazil
Source: DNPM ; Brasil InfoMine; Brazilian Mining Institute
Brazil boasts a rich geology and an astonishing variety of mineral deposits, from iron ore and gold to
diamonds and oil. The country has the world's sixth largest mining industry and is an important producer
and exporter of high quality ores.
The Mining Industry is responsible for the positive balance of Brazil’s trade, and the outlook of this
economic activity is extremely optimistic for the coming decades.
For 2011 the forecast of Brazil’s mineral production totaled US$ 50 billion.
Production
Brazil is a leading producer of minerals and produces and markets about 80 mineral commodities.
In 2010, Brazil was the world's top producer of niobium and tantalum, the world's third largest producer of
iron ore and rare earth elements, the fifth largest tin producer, and the world's sixth largest producer of
aluminum and manganese.
Mining products represented more than 50% of the Brazil's exports. By value iron ore generated 82% of
income from Brazilian exports. The most important mining states were Minas Gerais (48%), Para (28%),
and Goias (5%).
Brazil imports metallurgical coal, potash, sulphur, copper, zinc, and rare earth.
Forecast Investments in the Mining Sector 20011-2015
The IBRAM (Brazilian Mining Institute) www.ibram.org.br expects, based on data collected from mining
companies, significant investments of US$ 68.5 billion forthe period 2011-2015, which represents a new
record for the mining industry.
The private sector invests more in the country, an average of over US$ 13 billion per year.
These investments apply to a number of minerals, and since Iron Ore is the most significant one, it will take
up 63% of the total.
The most significant Brazilian mining projects include:
 Projects owned by Vale, which would spend $10.2 billion by 2014 to expand its iron ore operations
from Carajas in the state of Para. An additional $3 billion would be invested by 2012 to add more
tracks to its railway line that connects the Carajas mine with the port of Sao Luis located in the state
of Maranho. The company would also invest $2.5 billion by 2014 in their Apoloiron ore mine
located in the state of Minas Gerais.
 Anglo American will spend $4.3 billion by 2015 on developing a nickel mine at Jacare in Sao Felix
do Xingu in the Para state. Anglo American and Anglo Ferrous will also invest some $3.2 billion by
2015 in developing an iron ore mine that would straddle the border between the Rio de Janeiro and
Minas Gerais states (Minas-Rio System).
 The Conghonas iron ore mine from Minas Gerais would be expanded by steelmaker SCN by 2015
after expending $2.8 billion.
 The northern state of Amazonas would see a $2.5 billion investment by 2014 in potash deposits from
the private company Potassio do Brasil.
 By 2014, Mineracao Minas Bahia (MIBA) will invest $2.25 billion in an iron ore integrated project
(mine, processing plant and slurry pipeline in Minas Gerais).
 By 2013, the Norwegian Norsk Hydro will invest $2.2 billion in its alumina refinery located in
Bacarena of the Para state.
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Mining Legislation
Owing to Brazil's favorable policies on privatization, joint ventures and mergers more than 500
transnational corporations established operations in the country between 1990 and 2009. Still most of the
mining industry is controlled by large integrated Brazilian companies like Vale and Petrobras.
The Ministry of Mines and Energy through its National Department of Mineral Production (DNPM)
http://www.dnpm.gov.br is responsible for managing Brazil's mineral resources, for supervising the mineral
activity and enforcing the law.
Brazilian companies might have 100% foreign ownership.
The mineral rights holder still has to negotiate with the surface rights holder as a result of the separation of
mineral rights from surface rights.
Exploration licenses are being granted by DNPM and are valid for three years. Renewal of the license is
being done after analysis and approval of the Final Exploration Report.
Mining concessions are granted by the Ministry of Mines and Energy
http://www.mme.gov.br/mme, within one year of the date of approval of the exploration report.
(MME)
In order to receive an approval the foreign company needs to be registered in Brazil, to prove that has
enough funds to proceed to developing the mining project, and to have a specific environmental license
approved.
Concessions are granted for an indeterminate period of time lasting until the exhaustion of the mineral
deposit.
Aboriginal land in Brazil occupies 895,000 sq km and has a great geological potential. Brazilian indigenous
people have the right to self-determination therefore they have the right to reject mining projects on their
lands and / or to share in the benefits if they decide so.
The oil sector is open to competition and private investment.
The Brazilian Institute for Environment and Renewable Resources (IBAMA) http://www.ibama.gov.br/ is
in most cases the lead licensing entity.
Environmental licenses for new mining operations are needed in their three stages of development.
A preliminary environmental license is needed in the planning stage, followed by an installation license that
has to be obtained before the start of the construction; and, finally an operational license required before the
beginning of the mining and processing operations.
Transportation is regulated by the Brazilian Ministry of Transportation and its regulatory agency the
National Agency of Land Transportation (ANTT) www.antt.gov.br/ .
Taxes and Royalties
A royalty known as CFEM is being levied on revenues generated by the sale of minerals. Current rates are:
1% on gold; 2% on iron ore, copper, nickel, fertilizers, kaolin; and, 3% on potash, bauxite and manganese
ore.
Corporations are taxed (10-15%) according to their net profit for the fiscal year. Profits could be expatriated.
Institutions
The Geological Survey of Brazil (CPRM) http://www.cprm.gov.br is the official agency for collecting
Information on the country's geology, minerals and water resources.
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It manages and makes available a complex set of databases and theme-based geo-referenced information
systems, collection of documents, maps and images. Are also a number of regional level state organizations
involved in the local mineral business: Companhia Baiana de Pesquisa Mineral (CBPM)
www.cbpm.com.br in Bahia, Agencia Goiana de Desenvolvimento Industrial e Mineral (AGIM)
http://www.agim.goias.gov.br in Goias, Companhia de Mineração do Pará (PARAMINERIOS)
http://www.pa.gov.br/producao/paraminerios.asp in Para, Departamento de Recursos Minerais
(DRM/RJ) http://www.drm.rj.gov.br in Rio de Janeiro, Companhia Riograndense de Mineração (CRM)
http://www.crm.rs.gov.br in Rio Grande do Sul, Companhia Mineradora de Minas Gerais (COMIG)
http://www.comig.com.br and Minerais do Paraná (MINEROPAR) http://www.pr.gov.br/mineropar .
The National Petroleum Agency www.anp.gov.br is responsible for issuing exploration and production
licenses and monitoring and enforcing compliance with relevant regulations.
Some mining Companies
Cia. Brasileira de Metalurgia e Mineração- CBMM www.cbmm.com.br
ia. Siderúrgica Nacional - CSN www.csn.com.br
Cia. Vale do Rio Doce www.cvrd.com.br
Magnesita S.A. www.magnesita.com.br
Samarco Mineração S.A. www.samarco.com.br
S.A. Mineração Trindade - Samitri www.samitri.com.br
Votorantim Cimentos Ltda. www.votorantim.com.br
Brazilian Mining Associations
Brasil Mining Site www.brasilminingsite.com.br
Brazilian Aluminium Association www.abal.org.br
Brazilian Association of Machinery and Equipment Manufacturers www.abimaq.org.br
Brazilian Copper Association www.sindicelabc.org.br
Brazilian Portland Cement Association www.abcp.org.br
Brazilian Steelworking Institute www.ibs.org.br
National Association for Fertilizer Diffusion www.anda.org.br
Santa Catarina State Coal Extraction Industry Syndicate www.siecesc.com.br
Exhibitions
Exposibram - One of the largest expositions in Latin America in the mining sector.
www.exposibram.org.br .
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