Economy

Revenues in Brazil’s mining sink 30% in Q3

The balance was impacted by the price of iron ore

Alana Gandra

Published on 21/10/2022 - 16:24

Rio de Janeiro

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

Revenues in Brazil’s mineral sector in the third quarter of 2022 added up to BRL 75.8 billion—up 33 percent from the second quarter this year, BRL 57 billion. From the third quarter of 2021, when revenues stood at BRL 108.7 billion, the amount is down 30 percent decrease. The data were released today (Oct 20) by mining institute Ibram.

Raul Jungmann, head of the institute, attributed the retreat to factors such as the reduction of imports from China, the climate, and COVID-19—which he believes affect Brazil’s main importing market, China. “These have brought prices down significantly,” he noted.

Julio Nery, the authority’s director for Sustainability and Regulatory Affairs, pointed out that iron ore, the country’s number-one mineral product exported, which accounts for 64 percent of the revenues, saw a 43 percent decline in price in the period surveyed. The demand from China, he argued, does not seem to be on the wane.

Production

Regarding mineral production, a three percent growth was reported in the third quarter this year—going from 355 million tons in the third quarter of 2021 to 365 million tons in the quarter ending in September. Against the second quarter of 2022, the was 22 percent. For Julio Nery, the number suggests stability in the country’s production.

Investment

The sector should keep investment at around $40.44 billion until 2026—of which $6 billion is meant for sustainability, “a major concern among companies and the sector,” Jungmann pointed out.

Julio Nery argued that 54 percent of the investment is directed at projects that have been planned, and 46% at initiatives in execution. In both, iron ore concentrates $13.598 billion, followed by fertilizers ($5.750 billion) and bauxite ($5.569 billion). For railroads and ports, investments should total $2.937 billion.

Jobs

From January to August 2022, 5,617,000 new jobs were created in Brazil’s mineral sector. This number was added to the total contingent of 203,837 openings taken in the mineral sector. Jungmann said that, also considering indirect jobs, workers total two million, “which shows the dimension and strength of the mineral sector—not only in terms of revenues, but also for jobs.”