legislation and political factors in …...may 18, 2016 brazilian mining: industry slowdown and...

Frederico Barbosa, Business News Americas Presentation for VII SIMEXMIN May 18, 2016

Brazilian Mining: Industry Slowdown and Political Gridlock Belie True Potential

LEGISLATION AND POLITICAL FACTORS IN MINERAL EXPLORATION

Contribution of mineral extraction to Brazilian GDP

Source: BNamericas Data

BNamericas Mining

External Factors

Metal Prices

Economic Uncertainty

Capital Availability

Source: BNamericas Data

Iron Ore Prices: Monthly Average

Source: BNamericas 2016 Mining Survey

Outlook for Iron Ore Prices

Metals Price Forecasts

Source: BNamericas Data

BNamericas Average

Source: BNamericas 2016 Mining Survey

Financing for Mining Projects

Internal Factors

Nation in Crisis

Long Mining Code Reform Process

Presidential Changes

New Mining Minister

Fernando Coelho Filho

Source: BNamericas 2016 Mining Survey

Political Risk

Source: BNamericas 2016 Mining Survey

Investment Climate

Source: Ibram

Mining Investment

Source: Ibram

Production Value

Still hope? Of Course.

Brazil’s Share of Global Reserves

Source: US Geological Survey

Mineral Reserves

What needs to happen?

Political Stability

Mining Code

Economic Recovery

Metal Prices

Intelligence Series

Frederico Barbosa www.BNamericas.com

fbarbosa@bnamericas.com Los Militares 6191, Las Condes, Santiago, Chile

+55 11 3360-1229 Presentation for VII SIMEXMIN