Economy

Brazilian production of mineral sector grows 7% in 2021

Global revenue reaches BRL 339 billion

Alana Gandra - Repórter da Agência Brasil

Published on 02/02/2022 - 09:53

Agência Brasil - Rio de Janeiro

Minério — © Foto Portal Brasil.gov.br / Ricardo Teles

The total production of the Brazilian mineral sector reached last year 1.150 billion tons, registering an increase of 7 percent compared to the 1.073 billion tons of 2020. The sector's global revenue reached BRL 339 billion ($ 64 billion dollars), an increase of 62 percent compared to BRL $209 billion ($ 39 billion dollars) recorded in the previous year. The highest revenues were observed in the states of Pará, Minas Gerais, and Bahia.

The information was released on Tuesday (Jan. 1) by the Brazilian Mining Institute (Ibram). The strong increase in the price of the main mineral commodities, combined with the appreciation of the dollar, explains the growth in revenues, said the chairman of Ibram Board of Directors, Wilson Brumer. According to Brumer, there was a drop in the price of iron ore between June and November 2021, but even so, the average was 47.5 percent higher than that of 2020. The expectation for 2022 is to reach numbers similar to those of 2021.

Ore

Iron ore accounted for 74 percent of the sector's global revenue in 2021, and for 66 percent in 2020, followed by gold (8%) and copper (5%). Global Brazilian exports rose 34 percent last year, whereas mineral exports grew 58.6 percent, from US$ 36.5 billion in 2020 to US$ 58 billion in 2021. Although it is not an importing sector, mineral imports increased by 120.8 percent last year, from US$ 4.1 billion to US$ 9.1 billion. Brazilian imports rose 38.2 percent in 2021 compared to 2020. The mineral sector increased by 50.7 percent, whereas the Brazilian trade balance registered an increase of 21.5 percent.

In 2021, Brazil exported 357.7 million tons of iron ore, and in the previous year 341.6 million tons. Together, iron ore, gold and copper accounted for 91.8% of Brazil’s exports in dollars. The main destinations for Brazilian iron ore exports were China (68%), Malaysia (6.4%) and Japan (3.6%). The main product imported by the sector was metallurgical coal, with an increase of 25 percent in tons.

Environmental actions

In order to avoid the tragedies of Mariana and Brumadinho, where dams have collapsed, the chairman of the Board of Directors of Ibram said that the institute has signed a Commitment Letter on environmental actions, following the ESG concept (Environmental, Social, and Governance). A survey carried out with member companies identified 50 areas to achieve the ESG goals by 2030, with investments of over US$ 18 billion between 2022 and 2030.

Among the goals agreed by the companies are to increase the number of protected areas by 10 percent, reduce water consumption by 10 percent, reduce accident rate to 0 percent, reduce energy consumption by seeking alternative renewable sources, and double the inclusion of women and people with disabilities in companies and in leadership positions.