Billing of Brazil’s mining sector soars 62% in 2021 -survey
RIO DE JANEIRO, BRAZIL – The Brazilian mining sector recorded a 62% increase in revenues in 2021 compared to 2020, reaching R$339 (US$4) billion, according to data from the Brazilian Mining Institute (Ibram) released on Tuesday (1).
In the state division, Pará and Minas Gerais states remain the most important in the sector, with revenues of R$146.6 billion (+51%) and R$143 billion (+87%), respectively.
Minas Gerais increased its share in invoicing from 37% to 42%, while Pará’s share fell from 46% to 43%. In third place is the state of Bahia, which surpassed Goiás in relation to 2020 and had a growth in revenues of 67%, with R$9.5 billion.
“Minas Gerais is still powerful in mining and will be for many years to come. The state had the largest increase in royalty collection in 2021 and is also the state that will attract the most investments in the sector by 2025, US$10.2 billion,” says Flávio Penido, president of Ibram.
The survey estimates that the Brazilian mineral production in tons will increase by 7% in 2021, with an estimated 1,150 tons. For Ibram, the value represents “stability”.
However, the institute highlights a positive year for the sector, driven especially by the high commodity prices in 2021 with a heated demand. Among the minerals benefited is iron ore, with an average price of 47.5% higher than 2020, copper (+52%), and aluminum (+45%).
Iron ore continued to be the main mineral produced by Brazil, with revenues of R$249.8 billion last year, a high of 80%, and a share in total revenues rising from 66% to 74%.
It is followed by gold ore (R$27.1 billion, up 16%) and copper ore (R$17.8 billion, up 29%).
Ibram states that tax collection on the sector increased 62.3% in 2021, totaling R$117 billion. At the same time, the sector generated 14,869 new job openings in 2021, an increase of 8%.
TRADE BALANCE
Also, according to the survey, the so-called mineral balance – an account that subtracts from ore exports the imports – was R$48.9 billion, an increase of 50.7%, which is equivalent to 80% of the Brazilian trade balance in 2021, against 64.4% in 2020.
With the increase in commodity prices, exports rose from US$36.6 billion in 2020 to US$370.9 billion in 2021, a rise of 58.6%, while the quantity exported in tons rose only 0.4%.
China was the main destination for exports of iron ore (68%), niobium (35.4%), and manganese (50.5%), while Canada was the leading destination for gold (31.4%) and aluminum (39.1%).
Imports also rose, reaching US$38.37 billion, a 63% increase. The quantity in tons rose 16.3%. The main mineral imported is potash (47%), followed by coal (30.6%).
For the coming years, Ibram’s perspective is for stability and maintenance of good performance, especially with the prospect of increased demand by China and the growing demand for minerals linked to clean energy technologies, such as copper and aluminum. As for mineral production, according to Ibram, it should remain stable.
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Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.56%
175,017.19
-0.56%
66,409.65
-0.18%
10,947.38
-0.70%
3,249,524
-1.27%
2,268.93
-1.01%
57,112.22
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 175,017.19 | -0.56% | +28.52% | 176,010.90 | 176,011 | 173,871 | — |
| USD/BRL | 5.11 | +0.53% | -8.02% | 5.08 | 5.11 | 5.07 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| PETR4 | 40.36 | -0.57% | +27.12% | 40.59 | 40.86 | 40.35 | 12,646,200 |
| VALE3 | 72.91 | -2.15% | +33.92% | 74.51 | 74.08 | 72.72 | 6,968,000 |
| ITUB4 | 42.62 | -1.21% | +24.75% | 43.14 | 43.23 | 42.39 | 9,991,300 |
| BBDC4 | 18.37 | -1.24% | +14.38% | 18.60 | 18.54 | 18.19 | 7,858,200 |
| BBAS3 | 20.54 | -0.05% | -1.63% | 20.55 | 20.82 | 20.45 | 9,433,600 |
| B3SA3 | 15.40 | -1.85% | +12.50% | 15.69 | 15.72 | 15.24 | 22,382,600 |
| ABEV3 | 15.67 | +0.64% | +14.55% | 15.57 | 15.71 | 15.46 | 10,302,100 |
| WEGE3 | 43.37 | -2.01% | +5.45% | 44.26 | 44.35 | 43.34 | 2,674,900 |
| PRIO3 | 57.46 | -0.07% | +35.34% | 57.50 | 57.95 | 57.22 | 2,051,100 |
| SUZB3 | 41.92 | +1.06% | -16.92% | 41.48 | 42.18 | 41.38 | 2,418,500 |
| RENT3 | 39.16 | -2.95% | +5.81% | 40.35 | 40.25 | 39.12 | 2,559,200 |
| AZZA3 | 18.59 | -0.38% | -48.61% | 18.66 | 18.84 | 18.30 | 770,900 |
| CSNA3 | 5.15 | -1.72% | -35.63% | 5.24 | 5.20 | 5.10 | 5,917,900 |
| GGBR4 | 23.98 | -0.91% | +45.07% | 24.20 | 24.37 | 23.80 | 5,822,700 |
| ENEV3 | 26.14 | -3.01% | +88.06% | 26.95 | 26.88 | 26.10 | 4,993,400 |
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