Iron Ore Reserves in Brazil Market Forecast: Ken Research

The report titled “Iron Ore Mining in Brazil to 2021-Production Remains Buoyant Supported by New Projects”, provides a comprehensive analysis of iron ore extraction, brazil iron ore mining procedures, leading players in mining sector, growth in Brazilian mining market, and future of iron ore mining in Brazil.

Industry Overview: Processed metallic iron is extracted from rocks and minerals known as iron ore. Almost all the extracted ores are typically high in iron oxides and vary in colour. Iron is found in forms such as magnetite (Fe304), hematite (Fe203), goethite (FeO(OH)), limonite (FeO(OH).n(H20)), or siderite (FeC03). 98 percent of the iron ore mined or extracted is used in the manufacture of steel. There are various methods used in mining based on the type of ore. There are four types of ore deposits such as magnetite, titanomagnetite, massive hematite, and pisolitic ironstone deposits. Pig iron is a necessary raw material in making steel. The global demand for minerals is driving the growth of the iron ore market in Brazil. The country is rich in mineral ores and is the chief exporter of minerals. The increasing growth of the global automobile industry is creating a huge demand for various products thereby witnessing a continuing growth in the Brazilian mining industry. Iron ore is majorly used for steel production in Brazil.

In Brazil, there is a difficulty in procuring licenses for iron ore mining. Therefore, it is expected to discourage the growth in this sector. The country has a very complex regulatory framework for the mining sector. All the approval processes and jurisdiction is divided among the federal, state, and municipal governments. All the licenses in Brazil are renewed on the basis of the final exploration report. It was observed that there is a huge demand for steel in the construction sector and the aggregates are used for paving roads. Minas Gerais, Sao Paulo, Rio de Janeiro, and Parana are the major regions in Brazil driving the development and growth of the aggregate segment. The Brazilian mining industry is adopting innovative methods to withstand the increasing competition in the mining sector. The mining market is experiencing an increased number of private labels. The leading vendors in the Brazilian mining market are Vale S.A., MMX Group EBX, Votorantim Metals, Alumar Consortium and MRN. Other leading vendors are Anglo American, AngloGold Ashant, and ArcelorMittal.

Brazil is ranked third after Australia and Russia in the iron ore reserves within the country. Brazil has high-grade reserves in the state of Para and most of the country’s operational mines are located in Minas Gerais. Brazil ranked second globally after Australia in iron ore production with the expansion of existing mines and the upcoming projects in the country. Vale SA’s Apolo Mine in Minas Gerais, the Pedra de Ferro Project of Eurasian Natural Resources Corporation Plc in Bahia, Vale SA’s Serra Leste Project in Para, Honbridge Holdings Ltd’s SAM Iron Ore Project in Rio Grande do Sul, and the Jambreiro Project in Minas Gerais are the projects due to commence over the coming years. Almost all the iron ore mined in Brazil is exported to China, Japan, the Netherlands, South Korea, Germany, France, and Oman. However, the Brazilian iron ore industry is dominated by Vale SA which is the world’s largest producer of iron ore in Brazil.

Future Of Brazilian Mining Sector: It is estimated that Brazil’s iron ore production growth will remain strong in the coming years with low operating costs and solid projects in the pipeline. Other foreign and domestic firms will continue advancing Brazilian’s 14 iron ore projects in the near future. It was observed that Brazil in undergoing a major change in terms of economic and infrastructure development in the recent years. The Brazilian government is taking initiatives and the global events, such as the Olympics are investing in the development of the country’s infrastructure. Brazil’s mining sector recovery is steadily progressing; however, the declining iron ore quality and prices will maintain a limited growth. It was observed that the Brazilian mining industry will witness a steady growth over the next few years.

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