Brazil Mining 2011 - GBR

BRAZIL MINING
production. As far as uranium is concerned,
Latin American Reserves are
Brazilian reserves and there is a big interest
on the part of MERCOSUR to create
some continental integration based on a
strategy of creating mutually beneficial
partnerships.”
Niobium
Niobium prices have almost doubled over
the course of the past decade, increasing
from $13,197/mt in 2001, to $23,091/mt
in 2010. Brazil’s 5.2 million mt of niobium
represent more than 90% of the global
known total of 5.7 million mt. Given the
above figures, Brazil dominates global niobium
production accounting for 80,000 of
the 83,000 mt produced in 2010. Brazil’s
key niobium producing regions are Minas
Gerais, Goias and Amazonas, each
accounting for 57%, 42% and 1% of
national production respectively.
Three companies effectively control the
Brazilian niobium productive sub-sector.
Companhia Brasileira de Metalurgia e
Mineração (CBMM) accounted for 60% of
production in 2010, while Anglo American
and Mineracao Taboca accounted for 21%
and 12% of output respectively. CBMM, a
From Chapada mine, Yamana sells copper concentrate to Hindalco (India) and Atlantic Copper (Spain), as well as to
Trafigura, Louis Dreyfus (trade companies) and Paranapanema in the domestic market. (Photo courtesy of Yamana Gold)
predominantly family-owned business with
minor participations owned by U.S. company
Unocal and the Minas Gerais state,
sells more niobium or niobium-derived
products than the rest of its competitors
together.
CBMM owns the world’s largest deposit
of pyrochlore, the most important mineral
for niobium extraction and production. This
mine, located at Araxá, in Minas Gerais
State (Brazil), is operated as an open-pit,
without much need for drilling or explosives
and its production supplies between 65%
and 70% of the world demand for niobium
products. China is the world’s largest producer
of steel, and therefore the singlelargest
consumer of niobium. Brazil has the
world’s largest reserves of niobium.
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JANUARY/FEBRUARY 2011 • E&MJ 79