Base Metals Mining in Brazil to 2020

Brazil’s copper and nickel mine (or metal content in the ore) production was 273,057 tonnes (t) and 143,940t respectively in 2013, with the majority originating from Para, located in Northern Brazil, and Goias in central Brazil.

Scope

The report contains an overview of the Brazilian base metals mining industry, together with the key growth factors and restraints affecting it. It also provides information about reserves, production, consumption, trade, prices, competitive landscape, major active, exploration and development projects and the country's fiscal regime.

Key Highlights

• Copper metal consumption in Brazil was 452,046t in 2013, consumed mainly by the construction, wiring and cabling sectors.

• Germany and China were the two major export markets for Brazilian copper ores and concentrates in 2013, accounting for 49% of total exports.

• Estimated nickel ore and concentrate exports were 25,197t in 2013. Finland was the major market for this, with 89% of total exports.

• Brazil has a number of upcoming base metal projects, which are expected to support production over the forecast period. Some major upcoming copper projects until 2016 include the Cristalino project located in Para state, with a resource volume of 500Mt, which is expected to commence operations in late 2014.

Reasons to buy

Gain an understanding of the Brazilian base metals mining industry, the relevant drivers and restraining factors, reserves, historic and forecast production, consumption, trade, prices, competitive landscape and the fiscal regime.

Companies mentioned

Vale SA

Yamana Gold Inc.

Mineracao Caraiba SA

Mirabela Nickel Ltd

Anglo American Plc

Table of Contents

1 Executive Summary 1

2 Base Metals Mining in Brazil 7

2.1 Country Overview 7

2.2 Mining Overview 7

3 Base Metals Mining in Brazil – Drivers and Restraints 9

3.1 Base Metals Mining in Brazil – Drivers 9

3.2 Base Metals Mining in Brazil – Restraints 10

4 Copper Mining in Brazil – Reserves, Production, Consumption and Trade 11

4.1 Reserves by Grades and Geographic Regions 11

4.2 Historic and Forecast Production 12

4.3 Total Production by Mining Method 13

4.4 Total Production by Region 13

4.5 Copper Prices 14

4.6 Total Production by Major Mines 15

4.7 Major Exploration and Development Projects 15

4.8 Consumption and Trade 16

4.8.1 Total consumption by end-use sector 16

4.8.2 Domestic consumption vs exports 18

4.8.3 Exports by destination 20

4.8.4 Imports by source 21

4.9 Demand Drivers 22

4.9.1 Global demand vs Chinese demand 22

5 Nickel Mining in Brazil – Reserves, Production, Consumption, and Trade 24

5.1 Reserves by Grades and Geographic Regions 24

5.2 Historic and Forecast Production 24

5.3 Total Production by Mining Method 25

5.4 Total Production by State/Province 26

5.5 Nickel Prices 26

5.6 Total Production by Major Mines 27

5.7 Major Development Project 27

5.8 Consumption and Trade 28

5.8.1 Total consumption by sector 28

5.8.2 Domestic consumption vs exports 29

5.8.3 Exports by destination 30

5.9 Demand Drivers 30

6 Competitive Landscape 32

6.1 Vale S.A. 32

6.2 Yamana Gold Inc. 33

6.3 Mineracao Caraiba S/A 35

6.4 Mirabela Nickel Limited 35

6.5 Anglo American Plc 36

7 Fiscal Regime 39

7.1 The Brazilian Mining Industry – Governing Bodies 39

7.1.1 Ministry of Mines and Energy (MME) 39

7.1.2 National Department of Mineral Production (DNPM) 39

7.1.3 Brazil Geological Survey (CPRM) 39

7.1.4 National Commission of Nuclear Energy (CNEN) 39

7.1.5 Industrias Nucleares do Brasil SA (INB) 40

7.1.6 Ministry of Science and Technology (MCT) 40

7.2 The Brazilian Mining Industry – Governing Laws 40

7.2.1 The Mining Code 40

7.2.2 Law No. 4.118 40

7.2.3 Law No. 6.189 40

7.2.4 Law No. 9765 40

7.3 The Brazilian Mining Industry – Mining Licenses 41

7.3.1 Exploration Authorization System 41

7.3.2 Exploration Authorization Permit 41

7.3.3 Mining Concession System 42

7.3.4 Environmental Impact Assessment (EIA) study for Mining Activity 42

7.3.5 Environmental Licensing for Mining Activity 42

7.4 The Brazilian Mining Industry – Rights and Obligations 42

7.4.1 Rights 42

7.4.2 Obligations 42

7.5 The Brazilian Mining Industry – Key Fiscal Terms 43

7.5.1 Royalty 43

7.5.2 Corporate income tax 43

7.5.3 Land owner royalty 44

7.5.4 Annual tax 44

7.5.5 Withholding tax 44

7.5.6 Depreciation rates 44

7.5.7 Value added tax 45

7.6 The Brazilian Mining Industry – Future Development 45

8 Appendix 47

8.1 What is This Report About? 47

8.2 Methodology 47

8.3 Secondary Research 47

8.4 Primary Research 47

8.5 Contact GlobalData 48

8.6 About GlobalData 48

8.7 GlobalData’s Services 48

8.8 Disclaimer 50

List of Tables

Table 1: Base Metal Mining in Brazil – Copper Reserves by State (Thousand Tonnes), 2012 11

Table 2: Copper Mining in Brazil – Copper Mine Production (Thousand Tonnes), 2000–2020 13

Table 3: Copper Mining in Brazil – Major Active Mines, 2014 15

Table 4: Copper Mining in Brazil – Major Exploration Project, 2014 15

Table 5: Copper Mining in Brazil – Major Development Projects, 2014 15

Table 6: Copper Mining in Brazil – Domestic Consumption vs Exports (Thousand Tonnes), 2004–2020 19

Table 7: Copper Mining in Brazil – Exports by Destination (Thousand Tonnes), 2013 20

Table 8: Copper Mining in Brazil – Imports by Source, (Thousand Tonnes), 2013 21

Table 9: Nickel Mining in Brazil – Nickel Mine Production, (Thousand Tonnes), 2000–2020 25

Table 10: Nickel Mining in Brazil – Major Active Mines, 2014 27

Table 11: Nickel Mining in Brazil – Major Development Project, 2014 27

Table 12: Nickel Mining in Brazil – Consumption vs. Exports, (Thousand Tonnes), 2011–2020 29

Table 13: Nickel Mining in Brazil – Export to Region and Destination Countries, (Thousand Tonnes), 2013 30

Table 14: Base Metals Mining in Brazil – Vale S.A., Major Projects, 2014 33

Table 15: Base Metals Mining in Brazil – Yamana Gold Inc., Major Projects, 2014 34

Table 16: Base Metals Mining in Brazil – Mineracao Caraiba S/A, Major Projects, 2014 35

Table 17: Base Metals Mining in Brazil – Mirabela Nickel Limited, Major Projects, 2014 36

Table 18: Base Metals Mining in Brazil – Anglo American Plc, Major Projects, 2014 38

Table 19: The Mining Industry in Brazil – Uranium Licensing Fees (BRL $), 2014 43

Table 20: The Mining Industry in Brazil – Federal Royalty (%), 2014 43

Table 21: The Mining Industry in Brazil – Mining Taxation (%), 2014 44

Table 22: The Mining Industry in Brazil – Depreciation Rates (Years and %), 2014 45

List of Figures

Figure 1: Base Metals Mining in Brazil – Major Mineral Deposits in Brazil 8

Figure 2: Copper Mining in Brazil – Copper Mine Production (Thousand Tonnes), 2000–2020 12

Figure 3: Copper Mining in Brazil – Global Copper Nominal Prices (US$/Tonne), 2013–2015 14

Figure 4: Copper Mining in Brazil – Total Consumption by End Use Sector (%), 2013 17

Figure 5: Copper Mining in Brazil – Domestic Consumption vs Exports (Thousand Tonnes), 2004–2020 18

Figure 6: Copper Mining in Brazil – Export by Destination* (%), 2013 20

Figure 7: Copper Mining in Brazil – Imports from Country of Origin (%), 2013 21

Figure 8: Copper Mining in Brazil – Chinese Imports of Copper Ores and Concentrates (Tonnes), 2009–2013 23

Figure 9: Nickel Mining in Brazil – Nickel Mine Production (Thousand Tonnes), 2000–2020 24

Figure 10: Nickel Mining in Brazil – Global Nickel Nominal Prices (US$/Tonne), 2012–2015 26

Figure 11: Nickel Mining in Brazil – Total Consumption by Sector (%), 2013 28

Figure 12: Nickel Mining in Brazil – Consumption vs Exports (Thousand Tonnes), 2011–2020 29

Figure 13: Nickel Mining in Brazil – Exports by Destination* (%), 2013 30

Figure 14: Nickel Mining in Brazil – Chinese Imports of Nickel Ores and Concentrates (Tonnes), 2009–2013 31

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