2 nd Annual LatAm International Mining Conference 13 14 March 2013, Rio de Janeiro, Brazil The Significance of the Mining Industry for Brazil 13 March, 2013
PRESENTATION IBRAM Brazilian Mining Association Founded on December 10 th, 1976, the Brazilian Mining Association (IBRAM) is the Country s entity that represents corporations and organizations in the mining industry. It is a private, nonprofit association with robust coordination capabilities, and it has the following objectives: Bring together, represent, promote, and advance the Brazilian Mining Industry in order to advocate for their interests and help boost their competitiveness; Collaborate with governments, including on the development of technical studies; Promote sustainable development and use of best practices in occupational safety and health in the Mining Industry; Foster studies, research, development, innovation, and use of the best technologies available. IBRAM: Brings together 236 Corporations (Mining companies and other organizations); Represents companies that account for over 85% of Brazil s Mineral Production.
The Significance of the Mining Industry for Brazil Diversity of Mineral Substances Importance of Mining to Agriculture and Civil Construction Growth of Economic Classes Main numbers of the Brazilian Mineral Sector
PRODUCTS OF AGRICULTURAL AND MINING ORIGINS THAT POSITION BRAZIL IN THE GLOBAL ECONOMY Agricultural Products Ranking Position Mineral Products Ranking Position Coffee and Sugar 1 st Niobium 1 st Vegetable Oils and Grains 2 nd Iron Ore 2 nd Fruits and Meat 3 rd Bauxite and Graphite 3 rd Cotton 5 th Kaolim and Tin 5 th Cacao 6 th Phosphate and Vermiculite 6 th Cellulose 7 th Nickel and Talc 7 th Rice 9 th Germaniun 8 th Magnesite and Cobalt 10 th Salt 11 th Ilmenite 12 th Source: USDA, FAS, USGS, 2011-2012
MINERAL PRODUCTION: BRAZIL S GLOBAL POSITION (2012)
MAJOR REGIONS WITH MINERAL DEPOSITS
LOCATION OF BRAZILIAN MINERAL PRODUCTION IN 2012 MINERAL ORE RATING Alagoas - Al Salt 1C Amapá - AP Bahia - BA Kaulim Iron ore Copper Cromite Gold 1C 1A 1B 1B 2B Ceará - CE Crushed Stone 1C Distrito Federal - DF Limestone 1A Source: DNPM /Sumário Mineral 2012 Revista Minérios e Minerales nº 345 Ratings of Mines ROM (t)/year A > 3.000.000 B < 3.000.000 > 1.000.000 C < 1.000.000 > 500.000
LOCATION OF BRAZILIAN MINERAL PRODUCTION IN 2012 Goiás - GO Minas Gerais - MG Copper Chrysotile Phosphate Niobium Nickel Gold Aluminium Limestone Iron Ore Phosphate Gold Zinc Source: DNPM /Sumário Mineral 2012 Revista Minérios e Minerales nº 345 MINERAL ORE RATING 1A 1A 2A 1C 1A+1B 1B 2B+1C 1A+4B+3C 24A+4B 1A 1A+1B+4C 1B+1C Ratings of Mines ROM (t)/year A > 3.000.000 B < 3.000.000 > 1.000.000 C < 1.000.000 > 500.000
LOCATION OF BRAZILIAN MINERAL PRODUCTION IN 2012 Mato Grosso do Sul - MS Mato Grosso - MT Pará - PA MINERAL ORE Limestone Iron Ore Limestone Gold Aluminium Kaulim Copper Iron Ore Manganese Ore RATING 1C 1A+1B+1C 1B 2A 4A+1B 2B 2A 1A 1A+1C Paraíba - PB Limestone 1B Paraná - PR Limestone 1A+1B Ratings of Mines ROM (t)/year Source: DNPM /Sumário Mineral 2012 Revista Minérios e Minerales nº 345 A > 3.000.000 B < 3.000.000 > 1.000.000 C < 1.000.000 > 500.000
LOCATION OF BRAZILIAN MINERAL PRODUCTION IN 2012 MINERAL ORE RATING Rio de Janeiro - RJ Limestone 2B Rio Grande do Sul - RS Limestone Coal Santa Catarina - SC Coal 2B+1C Sergipe - SE Limestone Potash São Paulo - SP Limestone 4B 2C 2B 1A 1B Source: DNPM /Sumário Mineral 2012 Revista Minérios e Minerales nº 345 Ratings of Mines ROM (t)/year A > 3.000.000 B < 3.000.000 > 1.000.000 C < 1.000.000 > 500.000
The Significance of the Mining Industry for Brazil Diversity of Mineral Substances Importance of Mining to Agriculture and Civil Construction Growth of Economic Classes Main numbers of the Brazilian Mineral Sector
BRAZIL IN THE WORLD Area > 3 million km² Bangladesh Pop > 140 million BRAZIL Nigeria Russia Pakistan India Indonesia Australia China USA Canada Source: World Bank (2012) Germany Italy France Spain United Kingdom Japan Mexico GDP > US$ 900 billion South Korea
FEW COUNTRIES POSSESS THE KEY ELEMENTS NECESSARY TO MAKE IT A POWERHOUSE IN WORLD AGRICULTURE. BRAZIL IS THE 4 TH LARGEST AGRICULTURE IN THE WORLD AND ONE OF THE LARGEST EXPORTERS OF GRAINS Harvested area > 30 million hectares Urban population > 80 million inhabitants Argentina BRAZIL Russia Indonesia Canada India Japan China Australia USA Mexico Harvested area higher GDP than >US$ 30 1 Trillion million hectares Germany Spain UK France Italy Source: MB Agro Vale Fertilizantes
THE BRAZILIAN AGRICULTURAL SECTOR The Brazilian agricultural sector continues standing out as a great producer that needs fertilizers which have mineral origin, such as phosphate and potassium
THE BRAZILIAN SOIL DEMANDS FERTILIZERS TO ENSURE PRODUCTIVITY BOTH I THE SHORT AND LONG TERM
THE BRAZILIAN AGRICULTURAL SECTOR Source: CRU and ANDA
COMING OUT FERTILIZER CONSUMPTION (LAST TEN YEARS) North and Northeast Region presents : Demand by fertilizer has been rasing Land and water availabe Good weather conditions The chalange of infrastructure (ports, roads, rails) Source: Anglo American and ANDA
GLOBAL RANKING OF FERTILIZER CONSUMPTION
BRAZIL S FERTILIZER CONSUMPTION IN 2011 MILLIONS OF TONS OF NUTRIENTS Domestic Production Importing Source: IFA, ANDA 2012
Brazilian Fertilizer Consumption (in millions tonnes of nutrients)
IN RECENTS YEARS, BRAZIL HAS BEEN INCREASE ITS DEPENDENCE ON IMPORTED FERTILIZERS WHILE MAINTAINING ITS DOMESTIC PRODUCTION ON FLAT
SOURCE OF BRAZIL S IMPORTS OF PHOSPHATE PRODUCTS
POTASH INTERNATIONAL TRADE MAP BY SUPPLIER Source: Fosfertil and Rio Verde Minerals
THE BRAZILIAN AGRICULTURAL SECTOR Source: CRU Group
ENERGY AND FOOD GO HAND IN HAND The per capita increase in caloric consumption will require more cheaper energy, as well as fertilizers globally for production and transportation Source: World Bank, UN, Vale and SCR
Source: Rinker Materials
THE BRAZILIAN CIVIL CONSTRUCTION SECTOR Source: Executive Summary of The 2030 National Mining Plan
THE BRAZILIAN CIVIL CONSTRUCTION SECTOR The term construction aggregates is used in Brazil to describe a segment of the mining industry that produces raw or processed minerals for immediate use in the construction industry. Aggregates essentially sand and crushed stone are the most consumed minerals in the world.
CONSUMPTION OF AGGREGATES IN BRAZIL THE IMPORTANCE OF AGGREGATES For every kilometer of a subway line, 50,000 tons (t) of aggregates are required; Paving a road requires about 9,800 tons of aggregates per kilometer; Building a 50 sq m low-cost house consumes 68 tons of aggregates; The construction of a building requires 1,360 tons for every 1,000 sq m.
The Significance of the Mining Industry for Brazil Diversity of Mineral Substances Importance of Mining to Agriculture and Civil Construction Growth of Economic Classes Main numbers of the Brazilian Mineral Sector
POPULATION World Population Population 1650 1750 1850 1950 2000 2013 In billions 0,55 0,73 1,17 2,46 6,06 average growth % - 0,29 0,48 0,74 1,82* *Half century Source: Encyclopedia Britannica and World Bank Today 7 billions Brazil Population 1660 1766 1850 1950 2000 2013 In millions 0,18 1,50 7,26 51,94 169,87 average growth % - 2,00 1,90 2,00 2,40* Today 195 millions *Half century Source: IBGE
ECONOMIC PERSPECTIVES Drivers of demand Urbanization of the World Population World China 1,0 5,5 5,0 4,5 bilhões de pessoas 0,8 0,5 0,3 0,0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Rural população rural Urban população urbana 2015 2020 2025 2030 In 2050 2/3 of the world population will be urban bilhões de pessoas 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 1950 1955 Rural população rural Urban população urbana 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
SOCIAL PYRAMID IN BRAZIL The inversion of the social pyramid in Brazil brought more than 40 million new consumers to the market. These are accessing electronic components, automobiles, computers, consuming more food and beverage, medical and dental treatments, increased demand from construction, finally, new consumers for mineral raw materials. 2005 Social Classes 2010 26,4 M 62,7 M A/B C 42,2 M 101,7 M 92,9 M D/E 47,9 M Source: Cetelem-Ipsos
WORLD POPULATION IN 2030 The World has ~ 7 billion people. According to the UN, that number will rise to 8,3 billion by 2030. 2,789 kcal is the global averagem of each person consumes per day Convergence in 2030 Per capita consumption in development countries 3,314 kcal/day will
BRAZIL HAS A CONFORTABLE SITUATION IN ENERGY Critical uncertainties
BRAZIL HAS A CONFORTABLE SITUATION IN ENERGY
The Significance of the Mining Industry for Brazil Diversity of Mineral Substances Importance of Mining to Agriculture and Civil Construction Growth of Economic Classes Main numbers of the Brazilian Mineral Sector
MINING COMPANIES IN BRAZIL Total 8,870 companies reported to DNPM in 2011
TRENDS IN BRAZIL S MINING PRODUCTION Values in US$ BILLION Source: IBRAM 2013
TRADE BALANCE FOR THE MINING INDUSTRY BRAZIL'S MINERAL TRADE BALANCE IN 2012 = US$ 29,550 billions BRAZIL'S TRADE BALANCE IN 2012 = US$ 19,425 billions
BRAZIL'S MINING TRADE BALANCE IN 2012 EXPORTS AND IMPORTS Source: AliceWeb/MDIC
September 23 rd to 26 th, 2013 Belo Horizonte in MG state Brazil
THANK YOU http://www.ibram.org.br Marcelo Ribeiro Tunes ibram@ibram.org.br