COPY OF FINAL PROSPECTUS - Mirabela Nickel

27MAR200712114903
Source: World Bureau of Metal Statistics, INSG & GFMS Metals Consulting
The following information regarding the location, economy and political system is derived from the
technical report dated March, 2007 prepared in respect of the Santa Rita Project and from publicly available
information.
BRAZIL
Location, Economy and Political System
Brazil occupies a surface area of about 8.5 million square kilometres, an area slightly larger than Australia.
The climate is largely tropical with more temperate regions in the south. The topography is mostly flat with
rolling lowlands in the north, some plains and a narrow coastal belt. The total population is about 182 million
and literacy is about 86%. The official language is Portuguese, although English, Spanish and French are also
spoken. The capital city is Brasilia, located in the centre of the country.
Political conditions in Brazil are generally stable. Brazil has been a member of the World Trade
Organization since 1995 and is a founding member of Mercosur, a trade liberalisation program which also
includes as members, Argentina, Chile and Uruguay.
Brazil’s GDP (gross domestic product) in 2006 was US$943 billion. Brazil is one of the top five largest
mining countries in the world. In 2006, 5.5% of Brazil’s GDP was due to the mining sector, which amounts to
overall sales of approximately US$46 billion. Brazil is the world’s largest producer of iron ore. In 2005, Brazil
produced 280 million metric tonnes of iron ore, accounting for approximately 25% of the world’s total output.
Other minerals mined in Brazil include copper, bauxite, manganese and niobium. Brazil alone accounts for 95%
of the world’s niobium production.
The Brazil Mining Law Regime
General
Set out below is a summary of certain provisions of the mining legislation in Brazil. It does not purport to be
a comprehensive statement of all relevant provisions. It is included for the purposes of background information
only and should not be relied upon or used for any other purpose.
The 1995 Constitutional Amendment to Brazilian mining legislation granted foreign companies the right to
hold majority ownership in Brazilian projects and the right to equal fiscal and economic treatment. Today,
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