Mining revenues down in 2023 due to lower prices abroad
Revenues in Brazil’s mining sector totaled BRL 248.2 billion last year, down 0.7 percent from the previous year’s BRL 250 billion. The decline stemmed from lower product prices in the global market, said national mining authority Ibram.
The state with the highest revenues was Minas Gerais, with BRL 103.6 billion, followed by Pará, with BRL 85.4 billion.
From January to November 2023, 9,093 new jobs were created in the country, bringing the total number of jobs in the sector to 210,122.
The figures released this week show that exports reached $43 billion (+3.1%), with 392 million tons sold (+9.5%). Iron ore accounted for 71 percent of national exports. The product saw a 10 percent increase in exports in tons and a 5.7 percent expansion in dollars, due to lower commodity prices in 2023.
Mineral imports, meanwhile, added up to $11.02 billion, down 34.2 percent, even though 42 million tons were imported, up 4.7 percent. The lower prices of mineral products and the exchange rate justify the drop in value, Ibram reported. The most widely imported product was potassium, which accounted for 46 percent of the total.
Total tax collection by the sector also fell by 0.71 percent to BRL 85.6 billion.
Investment
The president of Ibram, Raul Jungmann, said that the investment forecast rose from $50 billion for 2023–2027 to $64.5 billion for 2024–2028, up 28.8 percent.
“This is extraordinary, because the world is demanding more minerals, especially critical minerals, and Brazil has immense potential in this area of critical materials, which are essential for overcoming the climate emergency the world is facing.”
Some of these minerals, such as lithium and niobium, for example, are used to make batteries, wind turbines, and solar panels. The International Energy Agency estimates that this market will be worth some $320 billion in 2022–2023 and could reach $1.2 trillion by 2030. “For Brazil, this is a passport to the future,” Jungmann stated.
