The revenue of the Brazilian mineral sector in the third quarter of 2022 totaled R$ 75.8 billion, an increase of 33% compared to the second quarter of this year (R$ 57 billion). In relation to the third quarter of 2021, when revenue was R$ 108.7 billion, there was a 30% drop. The data were released today (20), in Rio de Janeiro, by the Brazilian Mining Institute (Ibram).
The entity’s CEO, Raul Jungmann, attributed the decline to factors such as reduced imports from China, the climate issue and covid-19, which affect Brazil’s main import market, China. “This has all caused the price to drop significantly,” he said.
The director of Sustainability and Regulatory Affairs at Ibram, Julio Nery, highlighted that iron ore, the main product of national mineral exports, which represents 64% of revenues, had a price drop of 43% in the analyzed period. He does not, however, see a downward trend in Chinese demand.
He added that the billing should not reach, this year, the values of 2021, but it should be better than what has been observed this year so far. “The results at the end of the year should be more modest than they were in 2021, between 30% and 40% lower, due to the great influence that iron ore has on sales”, he pointed out.
The released balance sheet also reveals that the states of Minas Gerais and Pará, with a share of 39% each in the sector’s revenue, showed a decrease compared to the third quarter of 2021: 38% and 37%, respectively.
In comparison with the second quarter of 2022, there was an expansion of 19% and 60% in revenue in the two states. The reduction in revenue from Minas Gerais was due to the drop in the price of iron ore in the range of 40%.
In terms of mineral production, there was an increase of 3% in the third quarter of this year, from 355 million tons in the third quarter of 2021 to 365 million tons in the quarter ended in September. Compared to the second quarter of 2022, the increase was 22%. For Julio Nery, the number points to stability of national production.
investments
The sector maintains the intention to invest around US$ 40.44 billion until 2026, of which US$ 6 billion is for the area of sustainability, “which is a central concern of companies and the sector”, said Jungmann.
Julio Nery explained that 54% of investments are in projects that are scheduled and 46% in projects in progress, of which most are located in Minas Gerais (27% or US$ 11.137 billion). Then appear Bahia, with 15%, and Pará, with 11%.
Among planned and ongoing projects, iron ore concentrates US$ 13.598 billion, followed by fertilizers (US$ 5.750 billion) and bauxite (US$ 5.569 billion). For railways and ports, investments of US$ 2.937 billion are planned.
Nery evaluated that there is no prospect of suspension of investments by the companies, regardless of the result of the elections on the 30th, but of maintaining the investments placed and the projects.
jobs
In the period from January to August 2022, 5,617 new jobs were created by the mining sector in Brazil. This number was added to the total number of vacancies filled in the mineral sector, which totaled 203,837. Jungmann stated that, by adding indirect jobs, the number of workers reaches two million, “which demonstrates the size and strength of the mining sector, not only in terms of revenue, but also of jobs”.
Considering taxes and royalties, the third quarter of this year revealed the collection of taxes totaling R$ 26.1 billion, 30.3% lower than the amount collected in the same quarter of the previous year. Compared to the second quarter of 2022, the growth was 33%.
Currently, 2,610 Brazilian municipalities pay the Financial Compensation for Mineral Exploration (CFEM). This is a tax due to the states, the Federal District, the municipalities and the Union administration bodies, as consideration for the economic use of mineral resources in their territories. The sector explores 89 types of minerals in these 2,610 municipalities and encompasses 7,000 companies and micro companies.
