industrial minerals conference - pgina normal sem ttulo

Industrial Minerals Conference

The Americas - Minerals into the Millennium

Industrial Minerals ConferenceIndustrial Minerals Conference

The Americas The Americas -- Minerals into the MillenniumMinerals into the Millennium

Brazilian Industrial Minerals Overview:Brazilian Industrial Minerals Overview:Selected Highlights and PerspectivesSelected Highlights and Perspectives

Presentation by Eduardo Vale

Industrial Minerals Information Ltd.Industrial Minerals Information Ltd.Cancun 1997Cancun 1997

Brazilian Industrial Minerals Overview:Selected Highlights and Perspectives

Brazilian Industrial Minerals Overview:Brazilian Industrial Minerals Overview:Selected Highlights and PerspectivesSelected Highlights and Perspectives

Macroeconomic Environment

Mineral Sector Overview

Supply of Industrial Minerals

Highlights from the Demand Side

Outlook and Perspectives

Macroeconomic EnvironmentMacroeconomic Environment

Inflation & Growth

Balance of Payments

International Reserves

Net Flow of Foreign Investments

Climate of Investments

Fundamental Challenges

International Reserves1986 / 1997

International ReservesInternational Reserves1986 / 19971986 / 1997

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86 87 88 89 90 91 92 93 94 95 96 97

US$ Million

Oct

Net Flow of Foreign InvestmentsNet Flow of Foreign Investments

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-2000

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2000

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US

$ M

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n /

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

CruzadoPlan

ConstitutionElectionCollor Plan

Net Stock of Foreign Capital: US$115 Billion

Profile: 1981/96

Net Stock of Foreign Capital: US$115 Billion

Profile: 1981/96

Debt50%

Invest.40%

Others10%

Climate of InvestmentsClimate of Investments

Political Stability

Confidence in the Political Economy

Tradition as a Good Guest to Foreign Capital

Actual and Potential Size of Domestic Market

Diversity, Level of Integration and Sophistication of the Industrial and Technological Base

Speed and Scope of the Privatization Program

Climate of InvestmentsClimate of Investments

Competitive Advantages as a Launch Pad to Global Exports

Significance within the MERCOSUR

Competitive Taxation System

Modern and Large Financial Market

Clear and Liberal Legal Frame Regulating Flows of Foreign Capital

Mineral Sector OverviewMineral Sector OverviewMineral Sector Overview

Basic Indicators

Links with the Macroeconomic Expectancies

The Role of Foreign Capital

The Change in Minebusiness Climate

Mineral Sector Indicators : 1996Mineral Sector Indicators : 1996Mineral Sector Indicators : 1996

Gross Value of Mining Production : US$ 14.4 Billion

Added Value of Mining Production : US$ 10.3 Billion

Added Value of Mineral Production : US$ 76.9 Billion

Total Exports of Mineral Products : US$ 11.4 Billion p

Total Imports of Mineral Products : US$ 10.0 Billion p


35,50%

32,70%

31%

0,80%

FuelMetalsNon MetalsGems


Relevance in World Reserves

Niobium : ( 1st / 88% )Kaolin : ( 2nd / 14% )Graphite : ( 2nd / 13% )Aluminum : ( 3rd / 14% )Vermiculite: ( 3rd / 6% )Iron Ore : ( 5th / 9% )Magnesite :( 5th / 5% )Manganese : ( 5th / 1% )Fluorite : ( 6th / 3% ) Tin : ( 7th / 7% )

Mineral Sector Indicators : 1996Mineral Sector Indicators : 1996Mineral Sector Indicators : 1996Relevance in World ProductionRelevance in World Production

Niobium : ( 1st / 88% )Iron Ore : ( 2nd / 18% )Tin : ( 4th / 10% )Magnesite: ( 4th / 12% )Aluminum : ( 4th / 9% )Kaolin : ( 4th / 4% )Manganese : ( 5th / 13% )Asbestos : ( 5th / 7% )Graphite : ( 5th / 4% )Talc : ( 6th / 6% )Fluorite : ( 6th / 2% )Dim. Stones : ( 7th / 5% )

Foreign Investments in Mineral SectorForeign Investments in Mineral SectorForeign Investments in Mineral Sector

CountriesCountries

❏ Australia, Argentina, Belgium,Canada,

❏ China, France, Germany, Holland, Italy,

❏ Japan, Norway, Portugal, South Africa,

❏ South Korea, Spanish, United Kingdom,

❏ United States


Groups and/or CompaniesGroups and/or Companies

■ AKW, Alcan, Alcoa, Ambrex, Anglo American, ■ Bayer, Barrick, BHP, Billiton, CEMEX, Echo Bay, ■ Eldorado, ECC, Gold Star, Gencor, Holderbank, ■ Homestake, IFC, Inco, Itochu, JMC, Jordex,■ Kawasaki, Lafarge, Lysander, Madison, Marubeni, ■ Mitsubishi, Mitsui, Molycorp, Newmont, Nippon■ Steel, Nisho Iwai, Noranda, Norsk Hydro, Nomura,■ Pegasus, Posco, Placer, Reynolds, RTZ, Santa Fe,■ Southern Copper, Teck, TVX, Utah, WMC


Mineral Products

◆ Alumina, Aluminum, Bauxite,

◆ Cement, Copper, Chromium,

◆ Diamonds, Dimension Stones,

◆ Feldspar, Gold, Gypsum, Iron ore,

◆ Kaolin, Mineral Water, Niobium,

◆ Nickel, Steel, Tin, Titanium, Zinc

Sources of Funds: 1980’sProspection and Exploration

Sources of Funds: 1980’sProspection and Exploration

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State

Climate of Investments in Mineral SectorClimate of Investments in Mineral Sector

❖ Removal of Constraints to Foreign Capital

❖ Sensitive Reduction in Taxation

❖ Modernization of the Mining Code

❖ Administrative Reform of Government Agencies

❖ Determination to Guarantee Legal Stability

❖ Ample Privatization Program

Climate of Investment in Mineral SectorClimate of Investment in Mineral Sector

❖ Real Commitment to Reduce the Brazil’s Cost => taxation + infrastructure + cost of capital + administrative costs

❖ Extension and Diversity of Geological Environments

❖ Mining Legislation Clear and Transparent in Granting Explorationand Mining Concessions

❖ Exploration Permits are Granted for an Initial Maximum 3 year Period, but can be Extended if Justified

❖ It does not have a Maximum Period for the Mining Concession

Climate of Investment in Mineral SectorClimate of Investment in Mineral Sector

❖ Good Flexibility in Transferring Exploration and Exploitation Rights

❖ Great Number of Mining , Suppliers and Consulting Companies Composing an Expressive Network of Potential Partners, Sellers, Buyers and Customers

❖ A Modern and Seasoned Institutional Frame of Specialized Government Agencies

❖ Several Incentives at Regional and Sector levels

IRR of a Simulated Gold ProjectIRR of a Simulated Gold Project

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IRR

( %

ChileBoliviaBrazilVenezuelaArgentinaPeru

Supply of Industrial MineralsSelected Issues

Supply of Industrial MineralsSupply of Industrial MineralsSelected Issues

Expressive Geological Potential and Modest Reserves

The Importance Attributable to the Exploitation and Processing of Industrial Minerals is Relatively Recent

The Non Metals Answer for 31% of the Value of Mineral Production butthe Major Share is Relating to Construction Industry

Great Number of Small and Medium Sized Companies

Low Price Products

Focus on Regional Markets

Low Level of Industrial Integration

Low Level of Investments in R&D

Mine Sizes ProfileMine Sizes ProfileMine Sizes Profile

0% 20% 40% 60% 80%

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Supply of Industrial MineralsSupply of Industrial Minerals

MINERALS RESERVES1 PRODUCTION2 UNIT COST OF RESERVES3

UNIT COST OFPRODUCTION4

Asbestos 159,000 3,706 1 1,723Barite 50,000 43 3.12 278Refr. Bauxite 565,200 1,109 70.20Bentonite 33,652 167Clays 1,957,227 25,475Dolomite 1,800,971 2,912Fluorite 177,664 271 2.50 1,051Gypsum 1,081,778 953 14 27Granite3 1,669,611 512Graphite 96,672 710 38 1,683Kaolin 1,156,170 1,958 19 226Magnesite 720,023 1,211 3.20 453Phosphate 2,712,062 24,761 96 196Potash 9,179,902 1,294 194 2372Talc 64,018 298 6.54 89

(1) Measure and Indicated Reserves (103 tons of ore)(2) Run of Mine. (103 tons of ore)(3) Unit Average Cost for Incorporation of New Reserves (US$/t)(4) Unit Average Investment for the Increase of Annual Production

Cement Production( Million of tons )

Cement Production( Million of tons )

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Cement ConsumptionPer Capita (kg/year)


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Consumption of Glass( Thousand of tons )

Consumption of Glass( Thousand of tons )

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1996 1997 1998 1999 2000 2001 2002 2003

Float Package

Consumption of Kaolin( Thousand of tons )

Consumption of Kaolin( Thousand of tons )

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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Filler Coating

Investments in Mining: 1978 / 2010Investments in Mining: 1978 / 2010

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1978 / 92 1993 / 10

US

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Prospection / Exploration Expansion / New Projects Total

Projected

industrial minerals conference - pgina normal sem ttulo

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