Chapter 3.—Structure of the Mineral Industry

Transcrição

58
CHAPTER 3
STRUCTURE OF THE MINERAL INDUSTRY
Mineral Industry Structure
By A.C. Gurmendi1 and F.L.M. Barboza2
Since 1990, the Brazilian economy has shown signs of heading towards stability, and has
been going through changes that might set the basis of a new expansionary cycle. The
Government secured passage of constitutional reforms relaxing monopolies, privatizing Stateowned firms, and eliminating discrimination against foreign companies. These amendments are
fundamental to attracting domestic and foreign private investment, especially in the mineral and
public service sectors. Brazil’s mineral industry is quite diversified in terms of minerals produced
and firms of domestic and international origin operating in the sector.
Government Sector.—As part of the policy thrust, the Ministry of Mines and Energy was
created in 1960 and restructured as such in 1993 (see figures 3-1 to 3-4). Within the Ministry,
the Departamento Nacional da Produção Mineral (DNPM), acts as an autonomous agency for
mining. The Minister of Mines and Energy has powers to authorize the granting of mining leases,
and to annul or revoke them. The Director of the DNPM has been delegated powers to
authorize: the temporary suspension of a mining operation; to include other mineral substances
not specified in the original lease; to legalize the transfer of mining leases; to legalize, revoke,
cancel or annul exploration permits; to legalize the incorporation of permits in mining companies;
and to approve applications by companies to function as a mining company.
1
U.S. Geological Survey.
2
Departamento Nacional da Produção Mineral.
59
The Brazilian Geological Survey (CPRM-Companhia de Pesquisa de Recursos Minerais)
was established in August 1969 to stimulate the discovery and use of mineral and water resources.
CPRM is responsible for the geological surveys of the country, executing the following programs:
a) basic geological surveys; b) hydrological surveys; c) mineral resources information systems;
and d) underground water capture service.
The most notable state-owned mining and mineral related firms are: the Companhia Vale
do Rio Doce (CVRD - founded in 1942) operates the largest iron ore, gold, bauxite, and
manganese mines in Minas Gerais and Pará; Petróleo Brasileiro S.A. (PETROBRÁS - formed in
1953) was granted the exclusive rights for exploration and production of petroleum and natural
gas, and quickly set about to create a large-scale oil industry; and the Usina Siderúrgica de Minas
Gerais S.A. (USIMINAS-established in the Rio Doce Valley, Minas Gerais in 1958) was
privatized in October 1991. The USIMINAS steel mill produces heavy, hot-rolled, cold-rolled
plates, and galvanized sheets for local and export markets.
Since 1992, PETROBRÁS has operated five subsidiaries: (1) Petrobrás Distribuidora
S.A., the petroleum products distribution company; (2) Petrobrás Química S.A., the
petrochemical company; (3) Petrobrás Internacional S.A. (BRASPETRO), the foreign operating
company; (4) Petrobrás Fertilizantes S.A. (PETROFÉRTIL), the agricultural fertilizer company;
and (5) Petrobrás Mineração S.A. (PETROMISA), the mining company. In August 1995, the
Brazilian Congress ended PETROBRÁS' monopoly for production and distribution of petroleum
and natural gas. Foreign and domestic investors are allowed to participate in the country's oil and
gas industries through joint ventures. CVRD produces iron ore and pellets, gold, manganese ore,
aluminum and bauxite, and steel and alloys. It has been added to the list of state-owned firms to
be privatized in 1997.
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Minister
Executive Secretary
Legal Bureau
Secretary of Internal Affairs
Secretary of Mines and Metallurgy
National
Department of
Mineral Production
National
Department of
Mines and
Metallurgy
State-owned firms:
CVRD
SIDERAMA
CPRM
Minister’s Cabinet
Secretary of General Administration
Secretary of Energy
National
Department of
Electrical
Energy
National
Department
of Fuels
State-owned firms:
ELECTROBRAS
PETROBRAS
Figure 3--1. Ministry of Mines and Energy, 1995 organizational chart
Source: Government of Brazil
National
Department
of Energy
Development
61
Secretary of Energy
National Department
of Electrical Energy
Electric Services
Economics-Finance
National Department
of Fuels
Statistics and
Supply Policies
National Department
of Energy Development
State-owned firms
Energy Policies
ELECTROBRAS
Energy Information
PETROBRAS
Fiscalization **
Supply
Technology and
Energy Systems
Prices
Enterprise Gestation
Concessions
Figure 3--2. Secretary of Energy, 1995 organizational chart
** Fiscalization is most simply viewed as the “inspection” or “supervision” of companies to verify that regulations are being adhered
to. No single word can be readily applied in this translation from Portuguese. In the United States, it could be viewed as a field audit
to verify that policies/regulations are being followed.
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Secretary of Mines and Metallurgy
National Department of
Mines and Metallurgy
National Department of
Mineral Production
Mining Policies
Planning and Control
CVRD
Metallurgical Policies
Regulation
SIDERAMA
Enterprise Management
Fiscalization **
CPRM
State-owned firms
Figure 3--3. Secretary of Mines and Metallurgy, 1995 organizational chart
** Fiscalization is most simply viewed as the “inspection” or “supervision” of companies to verify that regulations are being adhered
to. No single word can be readily applied in this translation from Portuguese. In the United States, it could be viewed as a field audit
to verify that policies/regulations are being followed.
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Director
Deputy Director
Coordinator of Legal Affairs
Coordinator of Administration
Coordinator of Information Technology
Director of Mineral Exploration
Division
of Geology
and
Mineral
Exploration
Division of
Mineral
Resources
and Water
Director of Development
and Mineral Economics
Division
of Mineral
Economics
Division
of Mines
and
Environmental
Control
Director of Operations
Division of
Authorizations
and Concessions
Figure 3-4. National Department of Mineral Production - DNPM, 1995 organizational chart.
Division of
Fiscalization
and Standards
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Private Sector.—The mineral industry of Brazil is very diverse in terms of the type of ore
produced and the size of the companies that are active in the sector. Currently in Brazil, about
1,400 active mining firms produce about 80 minerals. Some 100 major mining corporations
contributed 56% of the Brazilian Value of Mineral Production (BVMP), and 30 major companies
are represented by large state-owned enterprises, domestic private firms, joint ventures between
foreign, state-owned, and/or domestic private corporations, and foreign corporations. They
represent about 47% of the BVMP, which was valued at $3.28 billion by the end of 1994 (see
table 3-1).
Brazil initiated the privatization process on October 24, 1991 when it sold 75% of the
common stock in Brazil's second-largest steel mill, Usinas Siderurgicas de Minas Gerais S.A.
(USIMINAS), to a variety of stockholders for $1.17 billion. Brazil has privatized all common,
nonflat product mills, with the minimill sector becoming a main beneficiary. Cofavi, Excell
(former Cosim), Cimetal, Usiba, and Cosinor were acquired by the Gerdau group, Brazil's largest
private sector steelmaking entity. Companhia Siderúrgica de Tubarão (CST) was the second
State-owned firm to be privatized. It was acquired by a consortium of Brazilian investors led by
CVRD, Banco Bozano Simonsen, and Unibanco. These three partners control 65% of CST,
while the remainder is controlled by the Kawasaki Steel of Japan and the Ilva group of Brazil
(FINSIDER).
The five major integrated steel firms, USIMINAS, Companhia Siderúrgica Nacional
(CSN), CST, Companhia Siderúrgica Paulista (COSIPA), and Aços Minas Gerais S.A.
(AÇOMINAS), were privatized between 1991 and 1993. Mineração Rio do Norte S.A.(MRN) is
privately owned. The five major aluminum smelters, all predominantly Brazilian private sector or
foreign owned, produced about 77% of the primary aluminum in 1995.
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In 1994, the Brazilian Government issued new rules for the country's privatization
program, which gave the President discretionary power to change the conditions or even stop the
sales of public enterprises. The Executive submitted a bill to Congress increasing the ceiling to
100% private ownership on a case-by-case basis. The Government's direct involvement in selling
State assets was increased by giving it a voice in how much cash and how much debt/swap could
be used in each sale. The guidelines also prohibit the pension funds of state-owned companies
from participating in future sell offs, leaving some of Brazil's most liquid players out of the game,
to avoid future monopolies.
More than 85% of the mineral value is concentrated in about 20 minerals including
petroleum and natural gas. In 1995, the domestic private corporations contributed 53% of the
Brazilian mineral production, the foreign corporations 25%, and the state-owned companies 22%,
excluding petroleum and natural gas.
Of the 20 largest (domestic, foreign, or joint ventures) private companies in Brazil
depicted in the structure of the mineral industry of Brazil for 1995 (see table 3-2) 8 produced
metals; 7, industrial minerals for construction; 3, industrial minerals; and 2 were in energy related
fields. Several major holding companies operate in Brazil, such as CAEMI/CADAM (iron ore,
ferroalloys, chromium, kaolin, and refractory bauxite); Votorantim (aluminum, nickel, and zinc);
Muriaria Sales/Union Oil-COME (columbium or niobium); Anglo American/B. Simonsen-Morro
Velho (gold and nickel); Bethelehem Steel/Antunes-ICOMI (manganese and steel); Magnesita
S.A. (industrial minerals); General Mining Corporation-GENCOR (gold and aluminum); TVXGold (gold); Western Mining Corporation-WMC (gold); José Carvalho (chromium); and others
play a major role in the Brazilian mineral sector. Also, active companies in the country include
162 cement and limestone mining producers operating 247 limestone quarries, and 34 iron ore
companies operating 80 mines.
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Small and Medium Mines.—The small- and medium-mining companies (SMMC) include
everything from prospectors that hold one or a few leases to well organized holding companies
that specialize in the operation of small mines or in the recovery of small high-grade deposits and
materials left from older, larger scale mining operations. According to DNPM, about 500 smalland medium-mining companies operate about 8,000 separate facilities. There are 1,096 small
mines, representing 57% of all Brazilian mines. DNPM considers a small mine as one whose
annual production does not exceed 50,000 metric tons (mt) of ore. SMMC employs 24% of the
labor force in the mining sector. The leading segment, building materials, is represented by 52%
of all SMMCs, with additional 36% of industrial minerals and 7% of ferrous and nonferrous metal
mines.
67
Table 3-1.—Major active corporations in the Brazilian mining industry in 1994
(US$3.28 billion = 47.04% Brazilian Value of Mineral Production - BVMP)
State-owned
Corp.
Mineral
CVRD
Fe, Al, Au
Caraiba
Copper
CRM
Coal
TOTAL
Domestic private capital
% BVMP
Corp.
Mineral
16.05
MBR
1.23
0.53
% BVMP
Corp.
Mineral
% BVMP
Fe
4.04
MRN
Bauxite
Fosfertil*
Phosphate
1.48
Samitri
CSN*
Fe, Mn
1,31
Taboca
Tin
Magnesita*
Foreign capital
Corp.
Mineral
3.20
Ferteco
Fe
1.65
Fe
1.33
M.Velho
Au
1.00
Samarco
Fe
1.32
Paracatu
Au
0.91
1.29
SAMA*
Asbestos
1.06
COMM.
Cb or Nb
0.66
Indust. min.
1.08
S. Geral
Fe
0.85
S. Grande
Au
0.65
M. Metais
Zinc
0.77
S. Bento
Au
0.65
ICOMI
Mn, Cr
0.76
Itaminas
Fe
0.70
Jacurici*
Cr, Mn
0.66
Copelmi
Coal
0.63
CADAM
Kaolin
0.61
Arafertil*
Phosphate
0.54
Ni. Tocant.
Nickel
0.53
CBA*
Bauxite
0.53
Novo Astro
Au, Ag
0.52
Socoimex
Fe
0.50
TOTAL
15.95
TOTAL
5.52
17.81
Source: Brasil Mineral, 1994, no 119.
Foreign & State-owned or domestic
private capital
*
Industrial Corporations.
TOTAL
7.76
% BVMP
68
Table 3-2.—Brazil: Structure of the mineral industry for 1995
(Thousand metric tons unless otherwise specified)
Commodity
Aluminum
Major operating companies
and major equity owners
Location of main facilities
Annual
capacity
Albras-Aluminio Brasileiro, S.A. (ALBRAS)
[Government, 26%; private, 25%; Nippon Amazon
Aluminum Co. (NAAC), 49%]
Belém, Pará State (smelter)
160 (metal).
Do.
Alcan Aluminio do Brasil, S.A. (Alcan Aluminum Ltd.,
100%)
Saramenha, Minas Gerais State (refinery)
150 (alumina).
Do.
Alcan Aluminio Poços de Caldas (ALUCALDAS)
(Alcan Aluminio do Brasil, S.A., 100%)
Poços de Caldas, Minas Gerais State (mine)
1,000 (bauxite).
Do.
Alcoa Aluminio, S.A. (ALUMAR)(Aluminum Co. of
America, 60%; Billiton International Metals B.V.,
40%)
São Luís, Maranhão State (refinery)
(smelter)
400 (bauxite).
550 (alumina).
174 (metal).
Do.
Aluminio do Brasil Nordeste, S.A. (Alcan Aluminum
Ltd., 100%)
Aratu, Bahía State (smelter)
58 (metal).
Do.
Billiton Metais, S.A. (Billiton International Metals
B.V., 100%)
São Luís, Maranhão State (refinery)
375 (refinery).
Do.
Compahnia Brasileira de Aluminio (CBA) (private,
100%)
1,000 (bauxite).
Sorocaba, São Paulo State (refinery)
(smelter)
170 (alumina).
170 (metal).
Poços de Caldas, Minas Gerais State
(refinery)
(smelter)
275 (alumina).
90 (metal).
Do.
Do.
do.
Compahnia Geral do Minas (private, 21%; Aluminum
Co. of America, 79%)
69
Commodity
Aluminum—Continued:
Annual
capacity
Mineração Rio do Norte, S.A.(MRN) (Government,
24%; private, 32%; Alcan Empreendimentos Ltda.,
24%; Billiton International Metals B.V., 10%; Norsk
Hydro Comercio e Indústria, 5%; Reynolds Aluminio
do Brasil, 5%)
Oriximina, Pará State (mine)
8,000 (bauxite).
Vale do Sul Aluminio, S.A. (Government, 27%;
private, 25%; Shell do Brasil, S.A., 44%; Reynolds
Metals Co., 4%)
Santa Cruz, Rio de Janeiro State (smelter)
86 (metal).
Coitezeirio Mineração, S.A. (COMISA) (private,
75.4%; Bayer do Brasil, S.A., 24.6%)
Campo Formosa, Bahía State (mine)
50 (ore).
Companhia de Ferro Ligas da Bahía (FERBASA)
(private, 100%)
Campo Formoso, Bahía State (mine)
(beneficiation plant)
370 (ore).
292
(concentrate).
Companhia Brasileira de Metalurgia e Mineração
(COMM.) (private, 55%; Molycorp, Inc., 45%)
Araxa, Minas Gerais State (mine)
1,200 (ore).
44.
Mineração Catalão de Goiás Ltda. (private, 68.5%;
Anglo American Corp. do Brasil, 31.5%)
Ouvidor, Goiás State (mine)
500 (ore).
Copper
Companhia Brasileira do Cobre (CBC) (private,
100%)
Cacapava do Sul, Rio Grande do Sul State
(mine)
1,000 (ore).
1,800
(concentrate).
Do.
Mineração Caraiba Ltda. (Government, 100%)
Jaquarari, Bahía State (mine)
3,000 (ore).
5,700
(concentrate).
Do.
Chromite
Do.
Columbium
Do.
70
Commodity
Ferroalloys
Annual
capacity
Companhia Brasileira Carbureto de Calcio (CBCC)
(private, 100%)
Santos Dumont, Minas Gerais State (plant)
54.
Do.
Companhia Ferro Ligas de Bahía, S.A. (FERBASA)
(private, 100%)
Pojuca, Bahía State (plant)
194.
Do.
Companhia Ferro-Ligas Minas Gerais
(MINASLIGAS) (private, 100%)
Pirapora, Minas Gerais State (plant)
58.
Do.
Companhia Paulista de Ferro-Ligas (private, 100%)
Barbacena, Caxambu, Jeceaba, Passa
Quatro and Passa Vinte, Minas Gerais State;
Corumbá, Mato Grosso do Sul State; and
Xanxere, Santa Catarina State (seven plants)
326.
Do.
Italmagnesio, S.A. Indústria e Comercio (private,
100%)
Bragança Paulista, São Paulo State; and
Varzeada Palma, Minas Gerais State (two
plants)
63.
Companhia de Mineração e Participações (CMP)
(private, 100%)
Lourenço, Amapá State (mine)
Currais Novos, Rio Grande do Norte (mine)
Gold
kilograms
300.
Do.
do.
Mineração Morro Velho, S.A. (private, 50%; Anglo
American Corp. do Brasil, 50%)
Novo Lima, Raposos, and Sabara , Minas
Gerais State; and Jacobina, Bahía State (four
mines)
2,000.
Do.
do.
São Bento Mineração, S.A. (Gencor Indústria e
Comercio Ltda., 49%; Amcor, S.A., 29.4%; Amcor
Metais Ltda, 21.6%)
Santa Barbara, Minas Gerais State (mine)
500.
Companhia Vale do Rio Doce (CVRD) (Government,
51%; private, 49%)
Serra dos Carajás, Pará State; and Itabira,
Ouro Preto, and Santa Barbara, Minas Gerais
State (four mines)
91,000.
Iron ore
71
Commodity
Iron ore—Continued
Annual
capacity
Ferteco Mineração, S.A. (Ferteco) (Exploration und
Bergbau Gmbh, 100%)
Ouro Preto and Brumadinho, Minas Gerais
State (two mines)
12,800.
Do.
Minerações Brasileiras Reunidas (MBR) (private,
85.3%; Mitsui e Co. Ltd., 14.7%)
Novo Lima and Itibirito, Minas Gerais State
(two mines)
31,500.
Do.
Samarco Mineração, S.A. (SAMARCO) (private,
51%; Broken Hill Properties Ltd., 49%)
Mariana, and Alegria Mines, Minas Gerais
State, Anchieta Mine, Espírito Santo State
11,700.
Do.
S.A. Mineração da Trindade (SAMITRI) (private,
100%)
Mariana, Rio Piracicaba, Itabira, Ouro Preto
and Sabara; Minas Gerais State (five mines)
9,300.
Lead
Mineração Boquira, S.A. (private, 100%)
Boquira, Bahía State (mine)
(Beneficiation plant)
300 (ore).
310
(concentrate).
Manganese
Companhia Vale do Rio Doce (CVRD)
(Government, 51%; private, 49%)
Corumbá, Minas Gerais State (mine) Serra
dos Carajás, Pará State
500 (ore).
1,000
(concentrate).
Indústria e Comercio de Minerios, S.A. (ICOMI)
(private, 100%)
Macapá and Mazagão, Amapá State (two
mines)
1,500 (ore).
800
(concentrate).
Nickel
Companhia Niquel Tocantins (private, 100%)
Niquelandia, Goiás State (mine)
150 (ore).
Steel
Aço Minas Gerais, S.A. (AÇOMINAS) (private,
100%)
Rodovia, Minas Gerais State
2,000.
Do.
Companhia Siderúrgia Nacional (CSN) (private,
100%)
Volta Redonda, Rio de Janeiro State
4,600.
Do.
72
Commodity
Steel—Continued
Annual
capacity
Companhia Siderúrgica Paulista (COSIPA) (private,
100%)
Cubatão, São Paulo State
3,900.
Do.
Companhia Siderúrgica de Tubarão (CST) (Other,
74%; Kawasaki Steel Corp.,13% Societa Finanziaria
Siderúrgia-Finsider, 13%)
Serra, Espírito Santo State
3,000.
Do.
Usinas Siderúrgicas de Minas Gerais,
S.A.(USIMINAS) (Others, 86%; Nippon Usiminas,
14%)
Ipatinga, Minas Gerais State
4,400.
Do.
Companhia Aços Especiais Itabira (AÇESITA)
(Government, 90.9%; private, 9.1%)
Timoteo, Minas Gerais State (stainless steel
plant)
600.
Do.
Companhia Siderúrgica Belgo - Mineira (private,
100%)
João Monlevade, Minas Gerais State
1,000.
Mineração Jacundá Ltda (private, 100%)
Santa Barbara, Novo Mundo, and Potosí;
Rondônia State (six mines)
(three beneficiation plants)
108 (ore).
450
(concentrate).
Paranapanema, S.A. Mineração, Indústria e
Construção (private, 100%)
Aripuana, Mato Grosso State; Ariquemes,
Rondônia State; Novo Aripuana and
Presidente Figueiredo, Amazonas State; and
São Felix do Xingu, Pará State (five mines)
(two beneficiation plants)
Piraporada Bom Jesús, São Paulo State
(refinery)
Tin
Do.
Titanium
Rutilo e Ilmenita do Brasil, S.A. (RIB) (private, 100%)
Mataraca, Paraíba State (mine)
5,420 (ore).
1,400
(concentrate).
25 (metal).
4,200 (ore).
120
(concentrate).
73
Commodity
Zinc
Do.
Do.
Zirconium
Companhia Minera de Metais (CMM) (private, 100%)
Annual
capacity
Vazante, Minas Gerais State (mine)
800 (ore).
48 (concentrate).
Tres Marias, Minas Gerais State (refinery)
72 (metal).
Mineração Areiense, S.A.-MASA (MASA) (private,
100%)
Vazante, Minas Gerais State (mine)
400 (ore).
Nuclemon Minero-Química Ltda. (Government,
100%)
São João da Barra, Rio de Janeiro State
(mine)
660 (ore).
do.
Do.
do.
Itapemirim, Espírito Santo State (mine)
90 (ore).
Do.
do.
Prado, Bahía State (mine)
(three beneficiation plants)
(three separation plants)
90 (ore).
123
(concentrate).
90 (concentrate).
Asbestos
SAMA-Sociedade Anonima Mineração de Amianto
(SAMA) (private, 100%)
Minacu, Goiás State (mine)
9,000 (ore).
230
(concentrate).
Cement
Cimento Santa Rita, S.A. (private, 100%)
Itapevi, São Paulo State (plant)
Salto de Pirapora, São Paulo State (plant)
1,000.
1,200.
Do.
Companhia Cimento Portland Itau (private, 100%)
Itau de Minas, Minas Gerais State (three
plants)
2,400.
Do.
Companhia de Cimento Portland Paraiso (private,
100%)
States of Espírito Santo, Goiás, Minas Gerais
and Rio de Janeiro (five plants)
4,000.
Do.
Companhia de Cimento Portland Rio Branco
(private, 100%)
Rio Branco do Sul, Paraná State (two plants)
5,000.
74
Commodity
Annual
capacity
Diamond
Mineração Tejucana, S.A. (private, 100%)
Diamantina, Minas Gerais State (mine)
100.
Fluorspar
Mineração Nossa Senhora do Carmo Ltda. (private,
100%)
Morro da Fumaça and Pedras Grandes,
Santa Catarina State (four mines)
180 (ore).
220
(concentrate).
Do.
Mineração Santa Catarina Ltda. (private, 100%)
Morro da Fumaça and Pedras Grandes,
Santa Catarina State (four mines)
100 (ore).
120
(concentrate).
Do.
Nacional de Grafite Ltda. (private, 100%)
Itapecerica and Pedra Azul, Minas Gerais
State (three mines)
840 (ore).
720
(concentrate).
CBE-Companhia Brasileira de Equipamento (CBE)
(private, 100%)
Codo, Maranhão State and Ipubi,
Pernambuco State (two mines)
100.
100%)
Ipubi, Pernambuco State (mine)
50.
Caulim da Amazonia, S.A. (CADAM) (private, 100%)
Mazagão, Amapá State (mine)
720 (ore).
360
(concentrate).
Empresa de Mineração Horii Ltda. (Horii) (private,
100%)
Biritiba and Mogi das Cruzes, São Paulo
State (two mines)
200 (ore).
180
(concentrate).
100%)
States of Goiás, Minas Gerais, and Rio de
Janeiro (five mines)
2,000.
Companhia de Cimento Portland Rio Branco
(private, 100%)
Rio Branco do Sul, Paraná State (three
mines)
5,500.
Gypsum
Do.
Kaolin
Do.
Limestone
Do.
75
Commodity
Annual
capacity
Limestone—Continued
S.A. Indústrias Votorantim (private, 100%)
States of Rio de Janeiro, and São Paulo (four
mines)
1,000.
Magnesite
Magnesita, S.A. (private, 100%)
Brumado, Bahía State-(one major mine and
numerous small mines)
770 (ore).
820
(concentrate).
Phosphate rock
Arafertil, S.A. (ARAFERTIL) (Government, 33.33%;
private 66.67%).
Araxa, Minas Gerais State (mine)
5,000.
Do.
Copebras, S.A.(Copebras) (private, 90.55%; Anglo
American Corp. do Brasil, 9.45%)
Ouvidor, Goiás State (mine)
4,400.
Do.
Fertilizantes Fosfatados, S.A. (FOSFERTIL) (private,
100%)
Tapira, Minas Gerais State (two mines)
10,500.
Serrana, S.A. de Mineração (Serrana) (private,
100%)
Jacupiranga, São Paulo State (mine)
6,000.
Mineração e Química do Nordeste, S.A. (Dow
Produtos Químicos Ltda., 100%)
Vera Cruz, Bahía State (mine)
1,000.
Carbonífera Criciuma, S.A. (private, 100%)
Circiuma and Sideropolis, Santa Catarina
State (two mines)
4,000.
Do.
Companhia Carbonífera de Urussanga (CCU)
(private, 100%)
Criciuma, Sideropolis, and Urussanga; Santa
Catarina State (three mines)
7,200.
Do.
Companhia de Pesquisas e Lavras Minerais-Copelmi
(COPELMI) (private, 100%)
Arroio dos Ratos, Butia, and Charqueadas;
Rio Grande do Sul State (four mines)
5,700.
Salt (rock)
Do.
Coal
76
Commodity
Petroleum
thousand 42-gallon barrels
Petroleum products
do.
Petroleo Brasileiro, S.A. (PETROBRAS)
(Government, 81.4%; private, 11.8%; public, 6.8%)
do.
Annual
capacity
99 fields in the States of Alagoas, Amazonas,
Bahía, Ceará, Espírito Santo, Rio de Janeiro,
Rio Grande do Norte, Pará, Maranhão, and
Sergipe States
220,000.
11 refineries in the States of Amazonas,
Bahía, Ceará, Minas Gerais, Paraná, Rio de
Janeiro, Rio Grande do Sul, and São Paulo
503,000.
Do.
do.
Refinaria de Petroleo Ipiranga, S.A. (private, 100%)
Ipiranga, Rio Grande do Sul
3,400.
Do.
do.
Refinaria de Petroleos de Manguinhos, S.A. (private,
100%)
Manquinhos, Rio de Janeiro State
3,650.
77
Mining in Urban Areas.—The procedure for registering mining claims in urban areas is
becoming more restrictive because of the environmental impact to which a particular area is
subjected. However, a company registered with DNPM, under the 1967 mining code, may claim
available areas by submitting a "Pedido de Pesquisa" or claim application for a particular mineral.
A claim normally covers an area of 1,000 hectares in most of Brazil, but may cover 10,000
hectares north of the 11 degree latitude in the Amazon region, and in the urban areas may cover
an area granted on a case-by-case basis.
A company may file up to five claims for a single mineral. Inasmuch as there are 9 classes
of minerals and a company may claim up to 10 minerals in each class, a total of 50 claims may be
filed for each given class. Some of the larger corporations set up dummy companies in order to
acquire additional claims. The result has been a very large number of interrelated mining
companies being registered with DNPM. For instance, in Rondônia about 2,000 tin exploration
licenses and 40 mining concessions are held by 120 operating companies. However, most of the
120 companies are controlled by 5 holding companies. In any available area, if the exploration
effort is successful, the holder of the Exploration Permit has one year in which to request a
Mining Lease for exploitation. If the lease application, "Decreto de Lavra," is approved by
DNPM, the document is signed by the President of the Republic. Following approval of a mining
lease, it is published in the Official Gazette ("Diario Oficial") and the company then has 6 months
to commence mining operations. This process in urban areas becomes more difficult and
complicated. Urban mining is dedicated mostly to produce construction materials. More than
70% of the Brazilian population lives in urban areas, which exerts a tremendous constraint on the
demand for materials for civil construction, especially in the largest cities.
The mining of materials for immediate consumption in construction frequently encounters
land-use conflicts. Owing to the industrial mineral's low intrinsic unit value, the distance to be
78
transported may leave a limited profit margin, presenting a dilemma for expanding urban areas.
Although the 1967 mining code removed clauses giving priority to surface landowners in the case
of industrial minerals destined for urban use, the provisions were reversed in 1978 to reconcile the
interests of all affected parties. Licenses were issued to mine clay, sand, and gravel by the
respective city governments.
DNPM provides advice to Government housing authorities, in mineral related projects, for
sanitation, transportation networks, and other urbanization factors. The agency strives to assist
mining operations to become more compatible with other land uses within the urban fabric,
assuring that new mining operations do not erode the quality of life in the surrounding
metropolitan areas. DNPM is especially vigilant in assisting to keep the adverse environmental
impact of urban mining operations to an absolute minimum. As a result of DNPM's urban policy,
planning directors were assigned to the São Paulo, Rio de Janeiro, Belo Horizonte, Salvador, and
Recife metropolitan areas, where mineral supply problems were most pressing. These directors
are responsible for establishing zoning regulations for urban mining activities.
To establish a crushed-stone or limestone-mining operation requires sizable investments
for medium to large outputs. In contrast, sand and clay operations tend to be smaller enterprises,
many of them operated in a clandestine manner. Some of these smaller operators failed to respect
environmental regulations, clearing forests along river margins, exploiting river beds carelessly,
and neglecting to restore areas degraded by their operations. Regulation of these smaller mining
operations has been problematic owing to their large numbers and wide distribution, demanding
vigorous efforts on the part of DNPM, local city governments, and environmental agencies. From
1987 to 1991, mining projects, alone, accounted for 61.4% of all environmental impact
evaluations undertaken by the State. The rest of DNPM's studies involved urban projects related
to sewer treatment, solid waste disposal, agriculture, transportation, and energy. It is clear that
79
the environmental regulation of the mining industry does not involve the magnitude of those
activities. Mining in the urban areas is more heavily regulated.
Garimpos/Garimpeiros.—The first prospecting activity in Brazil coincided with the
discovery of gold and diamonds in the State of Minas Gerais in the 18th century. The prospecting
was mostly restricted to alluvial deposits for gold, cassiterite, and diamonds and gems. Currently,
there are about 2,000 active prospecting activities in the Brazilian Amazon, where the land is
mostly public domain. Prospecting and mining activities are carried out by hydraulic extraction,
50%; milling, 17%; panning, 17%; and dredging, 16%.
The informal sector miners, called Garimpeiros, often work with scant regard for the
Brazilian mining legislation. However, they are important producers of gold, tin, precious and
semi-precious stones, and mica (in order of importance). This informal mining sector of Brazil is
represented by about 500,000 to 1,000,000 people. The Garimpeiros mostly produce (in order of
importance) gold, gemstones, and tin valued at $1.0-1.5 billion per year. The closure of the
largest garimpo mine, the Bom Futuro tin mine in the State of Rondônia, to protect the
Yanomami Indians, may have reduced the number of garimpeiros marginally.
The 1988 Brazilian Constitution has established the "Garimpo(s)" individual or collective
mining unit(s), which are organized in cooperatives and receive State support. They have priority
in the granting of mineral rights in areas where Garimpos were active and/or in new areas
designated by the DNPM. Tax evasion, smuggling of gemstones, gold, and tin, and illegal labor
practices by Garimpeiros have been minimized by transferring taxation from the Federal
Government to the states. Gold is considered a financial asset by the states, and to promote gold
production by Garimpeiros, taxation has been reduced from 17% to 1%. The tax reduction, use
of real exchange rate, fair market value, and no royalty payment have reduced gold smuggling to
significantly low levels in the last three years. Garimpeiro’s activities must be carried out in
80
conformance with the requirements of DNPM, and only after their environmental impact
statement and application has been approved by the Brazilian Environmental Institute (IBAMA).
These requirements are to prevent repetition of past mercury pollution, particularly in the Amazon
region. Currently, Garimpos are seeking a policy similar to that of gold for their gemstones.
Garimpos must report mineral production and commercialization annually to DNPM no later than
March 15 of the following year. Any damage to third parties resulting directly or indirectly from
Garimpos' activities must be accounted for. Noncompliance with these directives may result in
fines or cancellation of their Mining Permit. Also, mining minerals without official license is
considered a crime, and subject to fines or imprisonment. In addition, Garimpos' production and
equipment may be confiscated and sold at public auction, with the proceeds being deposited in the
Fundo Nacional de Mineração (FNM-National Mining Fund). The Border Zones, adjacent to
other countries, are subject to terms established by Article 91, Clause III of the 1988
Constitution. It stipulates that the National Defense Council proposes the conditions regarding
the use of areas considered to be "indispensable to the security of the national territory, and to
give an opinion regarding their effective use," particularly the border strips and areas related to
the preservation and production of natural resources of any type. Garimpos do not necessarily
have access to Border Zones.
Role of the Foreign Mining Companies.—Foreign corporations, from the United States,
Canada, Europe, and Japan, have played an effective role in the development of the Brazilian
minerals sector, having contributed to the exploration and development of Brazil's mining
industry. Foreign investment was always welcomed in Brazil, an attractive and reliable country in
which to invest, particularly in the mining sector. The Brazilian Constitution promulgated in
1988, however, played a negative role by restricting foreign capital to a maximum of 49%
ownership of equity.
81
Prior to the 1988 Constitution, equity in the hands of foreign investors evolved to joint
ventures, with domestic capital participation, which contributed to 33% of iron ore, 90% of
bauxite, 76% of aluminum, 83% of gold, 68% of nickel, and 100% of asbestos and columbium
(niobium) production. The respective degree of participation of foreign and domestic capital
varied proportionately with each project and mineral commodity produced (table 3-1).
Foreign companies were allowed by the Constitution of 1988 to operate in Brazil if they
would nationalize or "verticalize" their operations until October 1992. The majority of them
opted for joint ventures with Brazilian investors. However, some exploration projects were
canceled or postponed. Since 1990, the Brazilian mining sector has experienced a reduced
scenario. Capital for exploration decreased from an historical annual average level of about $160
million for the 1980's to about $40 million. Investments for development of new mines and
expansions, in the same period, dropped from an annual average of $600 million to $400 million,
representing a 33% reduction.
The sources of risk capital in mining are: state-owned, domestic private, and foreign
investments. The annual average investments for the period 1981-89 were: state-owned sources
amounting to $48 million per year, or 30%; domestic Brazilian capital accounting for $52 million
per year, or 32%; and foreign sources amounting to $61 million, or 38%. After 1990, sources of
risk capital changed dramatically, both in terms of dollar value and composition. The state-owned
investments represented 68%, or $32 million per year; the Brazilian private sector contributed
26%, or $12 million per year; and contributions of foreign investment amounted to $3 million per
year, or 6%.
Foreign investors departed from the mineral scene because of, in each case, some
combination of the following factors: recession; high inflation rates; an unbearable tax system;
restriction on foreign capital, enforced minority participation; and international competitiveness in
82
the attraction of risk capital, particularly in Argentina, Chile, China, Peru, and Mexico, where
better environments were offered for foreign investment.
In October 1994, a new Administration was elected and three-fifths of the members of the
elected Brazilian Congress was expected to support the Government's economic plan for
stabilization (Plano Real) based on strict control of the domestic deficit, issuance of the new
currency as of July 1, 1994, stable foreign exchange rates, and renegotiation of Brazil's foreign
debt on favorable terms.
During 1995, the Government continued to utilize monetary policy and high interest rates
(29% for 1995) with the objective of curbing inflation from the current 22% per year to 15%,
preventing price explosion and indicating, in part, a successful “Plano Real.” The Brazilian
Government’s stabilization plan introduced in mid-1994 succeeded in restraining Brazil’s chronic
high inflation (5,000% for 1993).
In 1995, the Brazilian Congress approved constitutional amendments allowing the
participation of the private sector, equal treatment of domestic and foreign investors, via
privatization, joint ventures, and deregulating investment in the sectors of mining, petroleum
exploration, natural gas distribution, coastal and river shipping, and telecommunications. Other
measures were undertaken by the Brazilian Government: the maximum Brazilian tariff was set at
20% (the commonly applied tariff is 14%), compared to 42% in 1993; the elimination of red tape
affecting trade; an Industrial Products Tax, a Federal tax levied on most domestic and imported
products, was set between 0% and 15%; and the allowance of 100% of equity ownership through
privatization and expatriation of profits. These actions were taken to create a favorable and
positive environment to attract both domestic and foreign investments.
Brazil is enjoying a boom in domestic and foreign investments, which increased from
$17.7 billion in 1992, to $32.6 in 1993 and $28 billion in 1995, and Brazilian stock markets, in
83
Rio and São Paulo, absorbed more than $12 and $15 billion in foreign investment in 1994 and
1995, respectively.
Since the opening of the service sector, Brazil is attracting direct foreign investment which
is expected to be sustainable during the decade. According to preliminary data released by the
Central Bank of Brasil (CBB), in late September 1996, net direct foreign investment from January
to August totaled $5.4 billion, 237% higher than the $1.6 billion in the same period of 1995. The
Planning Ministry of the Presidency is predicting that total direct foreign investment will reach $7
billion in 1996 and about $10.5 billion in 1997.
In August 1995, the 1988 Constitution was reviewed by both houses of Congress,
changing the State's monopoly powers by allowing the private sector to generate electricity and to
build and operate highways; privatize the state-owned mining giant, CVRD; end the monopoly
held by PETROBRÁS in the country's petroleum and natural gas industries; and approve the
concept of what constitutes a Brazilian corporation. The latter should benefit Brazilian companies
with foreign shareholders, which means that they will be considered Brazilian when they are
managed or have their headquarters in Brazil. Previously, only Brazilian firms were allow to
exploit the country's minerals endowment or to operate hydroelectric power stations.
Privatization and joint ventures could be the sources for future investments in mining, which were
estimated by the "Plano Plurianual" of the new Administration to be $35 billion by 2010, of which
$4 billion would be dedicated to exploration and $31 billion for production.
The country's mining industry is enjoying a boom in foreign investment in exploration and
mine development, particularly in gold. According to CBB, during 1990-94, Brazil received an
annual average of just $40 million in mining investments. Since late 1995, foreign mining
companies investments amounted to $2.5 billion. The DNPM estimated that gold production
from existing undeveloped reserves would require at least $1.3 billion. The Government's
84
aggressive economic policies, Brazil's diversified minerals endowment, and skilled labor base
stimulated a return of the major international mining corporations to Brazil. Several of them,
which fled Brazil after the promulgation of the Constitution of 1988, began acquiring exploration
properties and mining prospects, particularly for gold.
Currently, corporations active in Brazil include: Barrick Gold, Anglo-American, BHP,
RTZ, INCO, TVX, Western Mining Company, Newmont, Placer Dome, and GENCOR. A
strong consensus existed in Brazil for fiscal reform and for restrictions on investment to be
reversed. The Brazilian minerals sector, and the country as a whole, are benefitting by reversing
domestic capital flight and attracting foreign investment.

Chapter 3.—Structure of the Mineral Industry

Transcrição

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