Mineral industry’s output increase 7% while revenue increases 62%

The mineral industry in Brazil produced 1.150 billion tons last year, a 7% increase over the 1.073 billion tons produced in 2020. The sector’s global revenue reached R$ 339 billion, up 62% from R$ $209 billion the previous year.

The states that recorded the highest revenues were Pará, with R$ 146.6 billion (+51%); Minas Gerais, with R$143 billion (+87%); and Bahia, with R$9.5 billion (+67%). Pará’s share of global revenue fell from 46% in 2020 to 43% in 2021, while Minas Gerais’ share increased from 37% to 42% during the same period.

The Brazilian Mining Institute (Ibram) released the information on February 1st. According to Wilson Brumer, a member of Ibram’s  Board of Directors, the sharp rise in the prices of some of the most critical mineral commodities, combined with the dollar’s appreciation, explains the increase in revenues.

Commodities are agricultural and mineral products traded on the global market. According to Brumer, the iron ore price fell between June and November 2021, but the average remained 47.5% higher than in 2020. The expectation for 2022 is to reach numbers similar to those of 2021.

Ores

Iron ore accounted for 74% of the sector’s global revenue in 2021, compared to 66% in 2020, followed by gold (8%) and copper (5%). The data show that Brazilian exports rose 34% last year, while national mineral exports grew 58.6%, from US$36.5 billion in 2020 to US$58 billion in 2021.

Mineral imports increased 120.8 % last year, from US$ 4.1 billion to US$ 9.1 billion, even though the mineral industry is not focused on importing. On the other hand, Brazilian imports increased by 38.2% in 2021 compared to 2020.

The mineral industry’s balance grew by 50.7%, while the country’s trade balance grew by 21.5 percent. According to Ibram, the mineral balance will account for 80% of Brazil’s balance in 2021. This figure was 64.4% in 2020.

In 2021, Brazil exported 357.7 million tons of iron ore, vis-a-vis 341.6 million tons in the previous year. Iron ore, gold, and copper accounted for 91.8% of exports traded in US dollars.

The main destinations for Brazilian iron ore were China (68%), Malaysia (6.4%), and Japan (3.6%). On the other hand, the main product imported by the sector was metallurgical coal, increasing 25% in tons. The leading supplying countries for this product were Colombia (27%), the United States (26%), and Australia (24%).

Source: Agência Brasil

To read the full original article, please visit the link:

https://agenciabrasil.ebc.com.br/economia/noticia/2022-02/producao-do-setor-mineral-cresce-7-em-2021-e-faturamento-aumenta-62

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