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Main ores exported from BrazilPosted 12/05/2023
When planning to open a company in Brazil, it is essential to evaluate opportunities in different markets and niches. One of the segments with the greatest potential for Business in Brazil is the mining sector, since the country has large mineral reserves.
So, if you are thinking of registering a company in Brazil, find out which ores are prominent in exports and offer good profitable business opportunities!
Main ores extracted in Brazil
According to data from ANM – National Mining Agency, the most extracted and exported ores in Brazil are iron, copper, niobium and others, which add up to 98.6% of the commercialized Brazilian mineral production.
It is surely the most exported ore in Brazil. About 68% of the exports of the Brazilian mineral industry are iron, and Brazil is the 2nd largest producer of the ore in the world.
The states of Pará, Minas Gerais and its Iron Quadrangle are the major producers of iron ore in the country.
The Brazilian Mineral Yearbook published by the National Mining Agency (ANM) in 2018 informs that copper ore is extracted from places such as Pará, Goiás and Bahia.
Considered as one of the main ores extracted in Brazil, copper is used in the production of electrically conductive materials and in metallic alloys.
Brazil ranks 11th place in gold ore exploration. The country has deposits in little-known areas with great potential for exploration, such as the Carajás Province.
According to the National Mining Agency, two companies concentrate 51% of gold extraction: Canadian company Kinross and South African company AngloGold. Now, the small prospectin fields extract 10% of the production in the country.
About 98.4% of the world’s niobium reserves are in Brazil. In second and third places are Canada and Australia with just 1.11% and 0.46% respectively.
The cities of Araxá and Tapira (both in MG), São Gabriel da Cachoeira and Presidente Figueiredo (AM) and Catalão and Ouvidor (GO) are the sites of the largest national reserves.
The main nickel producing states are Goiás, Bahia, Piauí, Minas Gerais and Pará. According to the ANM, the multinational Anglo American company extracts almost more than half of Brazil’s nickel production.
About 65% of nickel is intended for the manufacture of stainless steel. In addition, 12% is used in the production of nickel superalloys. The other 23% is used in the production of rechargeable batteries, metal alloys and other uses.
Aluminum ore is found in the earth’s crust as bauxite. In addition, aluminum oxide is part of its composition, and is an important raw material for the production of metallic aluminum.
Why open a company in Brazil in the mining sector?
Brazil, the fifth largest country in the world by land area, has many natural resources and a very strong mining sector. So much so that it corresponds to 2.5% of the Brazilian GDP, which is highly profitable for those who plan to register a company in Brazil.
Opportunities are concentrated, for example, in the extraction and sale of ores, given that the Brazilian government has opened areas for mining activities, which were previously protected by law.
The incentives for foreign investment in the Brazilian mining industry derive from the new policies established by the Brazilian government on royalties, which determine that they can vary from 1% to 3.5%, according to the mineral resource.
In addition, the government plans to implement policies whose purpose is to debureaucratize and provide more transparency to the mining sector. Finally, there is an intention to raise the current limit of 40% foreign share in mining projects in Brazil.
Based on this information, bet on the mineral sector to open a company in Brazil and count on Europartner‘s experience to register your company in the country!Author's post: Europartner Accounting