2010

Brazil possesses one of the largest concentrations of minerals and is an important producer and exporter of high-quality ores, reasons why mining has become one of the major drivers of the Brazilian economy. The market is looking more favorable in 2010 due to the effects of measures taken by the government to extend credit lines, raise tax cuts, increase investments in infrastructure, and reduce interest rates, among other actions. Prospects for the mining sector looks extremely optimistic for the coming decades.

A Positive Outlook for Brazilian Mining

Large-scale companies

4,8%

Medium-scale companies

22,2%

Small-scale companies

73,0%

The mining secTor in Brazil is comprised predominanTly of

small-scale mining companies

mineral Trade Balance50 % of The overall Brazilian Trade Balance

Exports Imports Balance

11.030

4.4906.540

18.096

5.497

12.599

22.841

9.729

13.11215.196

5.185

10.011

2006 200920082007

25.000

0

5.000

10.000

15.000

20.000

US$ million

So much so that in 2012, the country will have reached the same levels of production and sales registered before the height of the international financial crisis.

Known worldwide for its presence as one of the principal iron ore producing nations, Brazil also stands out for its production in a number of other ores, among which are aggregate ores for civil construction and for the cement industry, which have seen impressive increases in production over recent months.

The introduction of sustainability practicess and approaches has been on the rise in the Brazilian mining industry, and has become a major concern for Brazilian companies. Promoting sustainability in mining activities has been the chief objective of the efforts put forth by IBRAM, the organization that represents the sector.

Brazil’s economic sTrengTh

Canada

Australia

United KingdomGermany

Spain

ItalySouth Korea

France

Netherlands

Mexico

India

Japan

China

Brazil

USA

Russia

Bangladesh

Republic of Niger

Pakistan

Indonesia

area > 5 million Km² pop > 150 million

gdp > 600 billion Us$

Esti mates indicates that in 2009, Brazilian Mineral Producti on should reach US$ 23 billion, a decrease of 18% over 2008, which was US$ 28 billion, excluding Oil and Gas. If we consider both the Mining and Mineral Transformati on Industries, the value of Brazilian Mineral Producti on in 2009 reached US$ 52 billion.

IBRAM forecast an increase of 20% in 2010 (in value) in the growth of Brazilian mineral producti on, due to the steady recovery noted in mining acti viti es over recent months.

Brazilian mineral production

evolUTion of The Brazilian mineral prodUcTion valUe in Us$ Billion

2009 = US$ 23 Billion

Variati on 2000/2008 = 250%2008/2009 = -18%

Not included oil and gas

30

25

20

15

10

5

078 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 09

Years

main productsimported and exported

2008 2009

mineral primary goods exports 22.841 18.096

Iron Ore 16.537 13.247

Niobium 1.647 1.060

Gold 1.032 1.384

Manganese 616 186

Copper 1.196 803

Silicon 509 347

Bauxite 293 158

Lead 19 9

Tin 103 13

Zinc 85 –

Others 804 889

mineral primary goods imports 9.729 5.497

Potassium 3.828 2.060

Copper 1.029 624

Coal 3.691 2.181

Zinc 162 71

Others 1.019 561

mineral Trade Balance 13.112 12.599

main prodUcTs imporTed and eXporTed(Us$ 1.000.000)

exporter global player

Niobium (1st)Iron Ore (1st)Bauxite (2nd)Manganese (2nd)

Graphite (3rd)Crysothile (4th)Tantalum (2nd)Dimension Stone (4th)

exporter NickelMagnesiumKaolinTin

VermiculiteChromeMica

self suffi ciency

Limestone (cement)Industrial DiamondTitaniumGold

TungstenTalc Zinc

importer/producer

PhosphateZirconiteDiatomite

PotashCopper

importer Metallurgic CoalSulfur

Rare Earth Elements

Brazilian sTaTUson The mineral gloBal marKeT

Corporate mining has announced investments on the order of R$ 47 billion by 2013 in Brazil, the highest volume seen from private initiatives in the country. This total represents a decrease of 20% over figures projected before the worst phase of the international financial crisis (R$ 57 billion). IBRAM estimates that investments between 2010 and 2014 will total R$ 50 billion, a clear demonstration of the consistent recovery of business in the mineral sector.

Investments

Royalties

In 2009, collection of mining royalties by CFEM in Brazil

totaled US$ 412 million, equivalent to R$ 742 million.

ores

production 2009*

(1.000 ton) (a)

increase until 2013(1.000 ton)

(B)

forecast production

on 2013 (c) = (a+B)

variation X

Times (c/a)

Iron 300.000 230.000 530.000 1,8

Nickel 75 115 190 2,5

Alumina 7.100 7.500 14.600 2,1

Bauxite 27.000 13.000 40.000 1,5

Aluminium 1.604 160 1.764 1,1

Copper 205 136 341 1,7

Gold 0,065 0,030 0,095 1,5

Phosphate 6.800 4.300 11.100 1,6

Zinc 150 50 200 1,3

Niobium 60 20 80 1,3

*Forecast

increases in mineral prodUcTion UnTil 2013

Investment in Mining Sector from 2008 to 2012 US$ 57 billion

New investments in the Mining Sector from 2009 to 2013 US$ 47 billion

invesTmenT in mining secTor from 2009 To 2013

37.341

31.5655.534

3.5462.600

1.5002.0262.519

Iron

Nickel

Alumina

Bauxite

Aluminium

Phosphate

Copper

Gold

Aggregates

Zinc

Niobium

Kaolin

1.7952.200

2.2422.057

2.0132.739

1.5479791.000

424

250150

150150

invesTmenT in mining secTor

Evolution of forecast investment in the Mining Sector US$ billion

60

50

40

30

20

10

jan-

07

mar

-07

mai

-07

jul-

07

set-

07

nov-

07

jan-

08

mar

-08

mai

-08

jul-

08

set-

08

nov-

08

jan-

09 mar-09

2528 32

4857

47502009–2013

2010–2014

The mineral potential in Brazil is extraordinary. At present, only 30% of the country’s immense territory has been studied thoroughly through geological surveys. Indigenous territories, which correspond to 13% of this territory and to 25% of the Amazon Region, are among the areas that may soon have their mineral potential evaluated, in addition to the strip of ocean located on the Brazilian continental shelf.

The chart reveals that the demand for geological surveying in Brazil has been restrained. To illustrate this point, observe that although its total area is close to seven times that of Peru, Brazil has invested only half of the amount that Peru has invested in geological surveys.

Geological survey

invesTmenTs in mineral

eXploraTion in The 10

leading coUnTries

(invesTmenTs By The

10 leading coUnTries

represenT 68% of The

BUdgeT in 2009)

ToTal: Us$ 8 Billion

Canada (US$ 1,3 billion) 17%

Australia (US$ 1,08 billion) 14%

USA 7%

Peru 6%Mexico 5%

Russia 5%Chile 4%

China 4%

Brazil(US$ 0,234 billion) 3%

South Africa 3%

Other countries 32%

IBRAM – Instituto Brasileiro de Mineração (www.ibram.org.br)– Brazilian Mining Association is the national representative organization of those companies and institutes that are active in the mining industry. It is a highly active and visible private, non-profit association with the following mission:

• To bring together, represent, promote and publicize the Brazilian mineral industry, and contribute to its competitiveness;

• To collaborate with public authorities, promoting technical studies;

• To encourage sustainable development and the use of improved occupational safety and health practices in mining activities;

• To stimulate studies, research and development, innovation and the use of the best technologies available;

• To defend the interests of the mineral industry.

KNOW MORE ABOUT IBRAM IN THE INTERNET

www.ibram.org.br

Discover Brazilian mining with IBRAM

IBRAMThe Brazilian Mining Association

SHIS QL 12 – Conjunto 0 (zero) – Casa 04

Lago Sul – Brasília/DF – Brazil

Zip Code: 71.630-205

Phone: 55 - 61 - 3364.7272

Fax: 55 - 61 - 3364.7200

ibram@ibram.org.br

iBram

• Private, non-profi t organizati on that represents the Brazilian Mineral Industry

• Founded in 1976

• Brings together 160 companies [mining and non-mining]

• Represents more than 85% of Brazilian Mineral Producti on

insti tuti onal commitment: To contribute to sustainable development in the Brazilian Mineral Industry, and generate wealth and social benefi ts while preserving the environment.

governance

Board of directors – comprised of representati ves from mining companies

executi ve Board – comprised of three chief members - the President - CEO, a Director for Mining Issues and a Director of Environmental Issues

iBram parTicipaTes in The folloWing inTernaTional insTiTUTions

ICMM – Internati onal Council on Mining and Metals

SIM – Inter-American Mining Society (Sociedade Interamericana de Mineria)

OLAMI – Lati n American Mining Organizati on (Organismo Lati noamericano de Minería)

The World Economic Forum

iBram amazônia and iBram minas gerais

In additi on to having headquarters in the country’s capital of Brasília, IBRAM maintains regional offi ces, one located in the state of Minas Gerais, the largest producing state in the country; and another located in the heart of the Amazon Rainforest, in the state of Pará. The organizati on plans to open three more regional offi ces over the next three years in other states which have shown increased mineral producti on: Bahia, Goiás and Rio Grande do Sul.

Employment

The total labor employed (direct jobs) in mining in 2009

reached 155 thousand workers in Brazil. Once the worst of

the international economic crisis passed, Brazilian mining

companies began hiring again en masse. Studies carried

out by the Ministry of Mines and Energy have shown that the multiplying eff ect of jobs

is 1:13 in the mining sector. That means that for each job

posting in mining, thirteen others are created along the production chain. Therefore,

one can consider that minerals created about 2 million jobs in 2009, without taking into

consideration those jobs created in the research, prospection, and planning phases or the

labor occupied in the mining settlements (“garimpos”).

Generates 2 million direct jobs in Brazil(155,000 = the mining industry)

Date 2009

Employment Generati on

MULTIPLIER EFFECT 1:13

The imporTance of miningon JoBs creaTion

2 1

11

1416

12

8

4

0

MiningIndustry

Suppliers

FirstTransformati on

Total

IBRAM promotes institutional actions to insure improved competitive conditions for mining companies through its Special Programs and Permanent Committees – such as the Legal Committee.

conim - mining committee for international standardization

Established in 1994, this special program has been acting as an interface between the mining sector and two standards organizations: at the international level, ISO - International Organization for Standardization and, at the national level, ABNT - The Brazilian Association for Technical Standards. The work of three ISO Committees has been object of CONIM’s developments: ISO/TC 102 - Iron ores and direct reduced iron, ISO/TC 155 - Nickel and nickel alloys and ISO/TC 183 - Copper, lead, zinc and nickel ores and concentrates.

Once International Standards incorporate the consensus among the practices and interests of the commercial parts involved, the active participation in their development are of utmost importance, especially for an exporting sector such us the Brazilian mining. The result of this work is a series of procedures to be used to qualify and thus give value to commercial lots.

Through CONIM, IBRAM maintains the leadership of 13 international technical groups, the ISO Secretariat of the Iron Ore and Direct Reduced Iron/Physical Testing Subcommittee, the Secretariat of the Brazilian Committee of Iron Ores and of the Brazilian Commission of Cupper and Nickel Ores, Concentrates and Primary Products, as well as the Secretariats of several ABNT’s groups.

special program for safety and occupational health – MinerAÇÃO

In 2007, IBRAM created the Special Program for Safety and Occupational Health – MinerAÇÃO. Its objective is to reduce the number of work-related accidents in the mining sector by implementing a series of safety measures, such as exchange and training programs; in addition to creating a database of the best practices in the sector, which will serve as a guide for prevention programs. It is estimated that by the end of the year of 2010 the program will be in operation.

IBRAM plans to turn this Program into a national reference in Occupational Health and Safety. In order to take part in the program, mining companies must adhere to the program’s guidelines and promote the exchange of good practices with other participating companies in the context of social responsibility and sustainable development in the sector.

Tailing dams safety program

Aware of the mining industry’s responsibility to protect and conserve the environment and reduce socio-environmental and economic risks resulting from tailing dams accidents, IBRAM has created the Tailing Dams Safety Program, a pioneering initiative being implemented on a national scale.

The Program’s objective is to train professionals in the mining, governmental and civil society sectors in best practices for tailing dams safety, by making available modern management tools and strategies.The program expects to contribute decisively to reducing the number of accidents and incidents that occur at these dams.

management of Water resources – perh

Management of Water Resources (Programa Especial de Recursos Hídricos) - PERH is an initiative developed by IBRAM in 2000, with the aid of a host of supporting companies with a long history of important achievements, particularly in the implementation and tracking of the National Water Resources Policy, by way of IBRAM’s active participation in the National Council of Water Resources and its Technical Councils. Together with the National Water Agency, PERH edited the book Water Resources and Mining Management (A Gestão dos Recursos Hídricos e a Mineração), which has been widely published in Brazil.

With the dynamic implementation of the National Water Resources Policy, new players from state, regional and local levels have adopted its norms at an ever increasing pace, a situation which has resulted in new challenges for mining and have pointed to a greater need to increase the scope and improve the strategy in support of PERH’s activities.

Because of this, IBRAM decided to reinforce PERH, which resulted in the elaboration of more ambitious planning to allow the Program to broaden its scope. IBRAM sees this opportunity as a benchmark for issues related to sustainable development in mining, since it provides its participants a strategic view of the use of water resources. Beyond that, it may be able to promote a positive image of the sector regarding environmental issues.

Special Programs for Mining

sponsored By iBrameXposiBram – international mining exhibition and Brazilian mining congress (Exposição Internacional de Mineração e Congresso Brasileiro de Mineração) • www.exposibram.org.br Every two years these events bring together more than forty

thousand people every day and hundreds of exhibitors from countries all over the world.

eXposiBram amazônia – international mining exhibition of amazon and mining congress of amazon (Exposição Internacional de Mineração da Amazônia e Congresso de Mineração da Amazônia)• www.exposibram.org.br These events are held every two years in the Amazon region.

They promote sustainable mining in one of the most important areas on the planet with the greatest mineral potential in the world. Though only a small portion of this region has been the target of systematic geological surveys on an adequate scale, what has been discovered to date in terms of high quality, large-scale mineral deposits attests to this affirmation.

Brazilian open pit mining congress, Brazilian Underground mining congress and mine closure Workshop (Congresso Brasileiro de Mina a Céu Aberto, Congresso Brasileiro de Mina Subterrânea e Workshop Fechamento de Mina)• www.ibram.org.br/VIcbminas These are annual events held in the city of Belo Horizonte, capital

of the state of Minas Gerais, from the 3rd to 5th of August, that showcase the technical achievements of Brazilian mining.

international congress of mining rights (Congresso Internacional de Direito Minerário)• www.ibram.org.br The first of its kind is to be held in the city of Salvador, capital

of the state of Bahia, on the 7th and 8th of June. The congress is a partnership between IBRAM and the Brazilian Ministry of Mines and Energy and the office of the Brazilian Solicitor General, an agency linked to the Presidency of the Republic of Brazil. The event’s main objective is to intensify the debate on International Mining Rights.

Participate in the most important events in Brazilian mining

EXPOSIBRAM 2009

EXPOSIBRAM 2009

iBram – The Brazilian mining associationSHIS QL 12 – Conjunto 0 (zero) – Casa 04, Lago Sul – Brasília/DF – Brazil Zip Code: 71.630-205Phone: 55 - 61 - 3364.7272 Fax: 55 - 61 - 3364.7200 – ibram@ibram.org.brKnow more about ibram in the internet: www.ibram.org.br