BRAZILIAN MINERAL SECTOR - An Overview of the Nickel Sector

Transcription

1 BRAZILIAN MINERAL SECTOR - An Overview of the Nickel Sector Carlos Nogueira da Costa Junior Deputy-Secretary - Jones Belther Director of the Votorantim Metais Lisbon, may 2007

2 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

3 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

4 Mineral Activities Overview Mineral Exploration 30 million ha Request for Exploration Authorization Exploration Authorization Permit Mining Concession Licencing Request for Mining Concession Mining Concession 1.8 million ha

5 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)

6 Status of Brazil in the Global Mineral Market Global Player Exporter Self Sufficiency Importer /Producer Importer Niobium Nickel Limestone Phosphate Surfur Iron Bauxite Manganese Graphite Tantalum Amianthus Magnesium Kaolin Vermiculite Chrome Mica (cement) Industrial Diamond Titanium Gold Talc Copper* Zirconite Zinc Diatomite Potassium Metallurgic Coal Rere Earth Elements *About 2007

7 MINERAL EXPORTS IRON ALUMINIO DIM.STONES COPPER CLAY GOLD NIOBIUM MANGANESE NICKEL KAOLIN PHOSPHATE

8 MINERAL IMPORTS US$ 1, COAL COPPER POTASSIUM IRON PHOSPHATE BAUXITE SALT TITANIUM NICKEL SULFUR

9 Mineral Production Overview COAL 3% 3% GEMS AND DIAMOND 2% 2% NON NON-METAL 43% 43% METAL 52%

10 Investments Forecast Expected investments through Total: US$ 30.2 Billion IRON AND Siderurgy STEEL INDUSTRY 42% - 42% Mineral MINERAL exploration EXPLORATION 2% 2% Mining 28% Others 50% Iron ore 36% LOGISTIC Logistics - 3% 3% PRODUCTIONL Production EXPANSION expansion 25% 25% Bauxite &alumin a 14%

11 Trade Balance 140, , ,000 US$ Million 80,000 60,000 40,000 20, Import Mineral Sector Import Others Export Others Export Mineral Sector Source: DNPM (Sumário Executivo 2005)

12 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 exploration licenses. Majors and mid-sized Companies CVRD, BHP Billiton, Rio Tinto, Anglo American, Alcan,Newmont, Xstrata, Anglo Gold, Tech Cominco, Codelco, Votorantim, Kimross and Yamana. Junior Companies Jaguar Mining, Castillian Resources, Vaaldiam Resources, Cougar Metals, Crescent Resources, Brazmin, Eldorado Gold Corporation, Aurizona Goldfields, Amarillo Gold, Metallica Resources, DIAGEM International Resources, Brazilian Diamond, Bontan Diamond, Majescor Resources, Lara Exploration.

13 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 Níckel Niquelândia/Codemin III and Barro Alto (Anglo American). Expansions in Serra da Fortaleza and Americano do Brasil. Vermelho (CVRD) % 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.

14 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

15 Concluded Project 2003/2006 The Brazilian Geological Survey Program Atividade Nº Folhas Área (Km2) % do País Cartografia Geológica 1: Mapas Estaduais Lev. Geológicos 1: Lev. Geológicos 1: Levantamentos Aerogeofísicos (Projetos) , , ,3 Dados CPRM: 24/10/2006 e 18/12/2006

16 Brazilian Mineral Resources: Iron Total Reserves (ton): billion Main Deposits 1 - Serra dos Carajás - PA 2 - Quadrilátero Ferrífero- MG 3 - Urucum - MS 4 - Rio Peixe Bravo - MG 5 - Guanhães, Morro do Pilar MG

17 Brazilian Mineral Resources: Manganese Total Reserves (ton): Metal Contents (ton): million Main Deposits 1.Urucum - MS 2.Buritirama, Igarapé Azul - PA 3.Quadrilátero Ferrífero - MG 4.Conselheiro Lafaiete - MG 5.Guaçuí - ES 6.Maraú - BA

18 Brazilian Mineral Resources: Chrome Total Reserves (ton): Metal Contents (ton): 6 7 million Main Deposits Vale do Jacurici - BA Pindobaçu - BA Campo Formoso - BA Dom Joaquim - MG Piuí-Nova Rezende - MG Mazagão - AP Fazenda Lageado - GO

19 Brazilian Mineral Resources: Nickel Total Reserves (ton): Metal Contents (ton): million Main Deposits Puma - Onça - PA Vermelho - PA S.João do Piauí - PI Niquelândia - GO Barro Alto GO Americano do Brasil - GO Fortaleza de Minas - MG Morro do Níquel - MG Jacupiranga - SP

20 Brazilian Mineral Resources: Aluminum Total Reserves (ton): 4.3 billion Main Deposits Trombetas-Oriximiná - PA Paragominas - PA Almeirim - AP Sudeste de Minas Gerais Poços de Caldas - MG Morro Redondo - RJ

21 Why to Invest in Brazil? Because Brazil is 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

22 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

23 Secretary of Mining and Metallurgy Public Administration Efficient legislation SUSTAINABLE DEVELOPMENT OF MINERAL INDUSTRY Geological Information Financing

24 Secretary of Mining and Metallurgy USEFUL LINKS Ministry of Mines and Energy Brazilian Geological Survey National Department of Mineral Production Centre of Mineral Tecnology