巴西礦業(yè)指南2023

BrazilCountryMiningGuide-2023Brazil

CountryMining

Guide

2023.br1BrazilCountryMiningGuide-2023ContentsABOUT

KPMG3ABOUT

IBRAM

401

Executive

summary502

Country

snapshot603

EIU

rankings:

Ease

of

doing

business704

Type

of

government

and

judiciary

805

Economy

and

?scal

policy906

Fraser

institute

rankings

1107

Regulatory

environment1208

BM&FBOVESPA

–

Brazil

exchange1709

Sustainability

and

Environment

1810

Taxation2211

Power

supply2712

Infrastructure

development2813

Labor

relations

and

employment

situation3014

Inbound

and

outbound

investment3215

Key

commodities

–

Production

and

reserves

3416

IBRAM

Associated

Mining

Companies38KPMG

Global

Mining

practice

41Further

insight

from

KPMG

412BrazilCountryMiningGuide-2023ABOUT

KPMGThrough

helping

other

organizations

mitigate

risks

and

graspopportunities,

we

can

drive

positive,

sustainable

change

for

clients,our

people

and

society

at

large.KPMG

?rms

operate

in

143

countries

and

territories,

and

in

FY22,collectively

employed

more

than

265,000

partners

and

people,serving

the

needs

of

business,

governments,

public-sectoragencies,

not-for-pro?ts

and

through

KPMG

?rms’

audit

andassurance

practices,

the

capital

markets.

KPMG

is

committed

toquality

and

service

excellence

in

all

that

we

do,

bringing

our

bestto

clients

and

earning

the

public’s

trust

through

our

actions

andbehaviors

both

professionally

and

personally.KPMG

has

developed

an

international

network

of

experiencedprofessionals

in

the

Mining

industry.

KPMG

International’s

member?rms

operate

in

the

three

regions

–

Americas;

Europe,

Africa

andMiddle

East;

and

Asia

and

Oceania

–,

each

one

with

a

dedicatedteam

to

the

industry.This

structure

enables

its

professionals

tostrike

the

right

balance

between

identifying

and

understandingdomestic

markets,

thus

helping

ensure

that

they

are

able

toimplement

global

strategies

and

practices

in

a

consist

manner.KPMG

in

BrazilIn

Brazil,

approximately

5,000

professionals

work

in

22

cities

located

in13

States

and

the

Federal

District.

KPMG

in

Brazil

has

of?ces

locatedin

S?o

Paulo

(head

of?ce),

Belém,

Belo

Horizonte,

Brasília,

Campinas,Cuiabá,

Curitiba,

Florianópolis,

Fortaleza,

Goiania,

Joinville,

Londrina,Manaus,

Osasco,

Porto

Alegre,

Recife,

Ribeir?o

Preto,

Rio

de

Janeiro,Salvador,

S?o

Carlos,

S?o

José

dos

Campos

and

Uberlandia.From

small

and

middle-sized

mining

companies

to

large

miningcompanies

and

from

the

beginning

of

the

exploitation

to

the

miningcapping,

KPMG

in

Brazil

has

the

resources,

technical

knowledge

andteam

focused

on

satisfying

your

needs.In

Brazil,

KPMG

relies

on

one

of

the

largest

Mining

practices

in

thecountry,

with

professionals

providing

Audit,

Tax

and

Advisory

servicesfocused

on

this

industry.

Weprovide

services

to

approximately

60%

ofthe

major

mining

companies

in

the

world3BrazilCountryMiningGuide-2023ABOUT

IBRAMIBRAM

is

a

Brazilian

private

non-pro?t

organization,

with

more

than

130associates

responsible

for

85%

of

Brazil′s

mineral

production.

It

carrieswith

it

the

essence

and

strength

of

the

true

#BrazilianMining.This

mining

is

the

one

aligned

with

sustainability.

Inductive

of

goodESG

(environment,

social

responsibility

and

governance)

practicesin

everything

it

does.

Ethical

and

transparent

in

its

relationships

withpeople.

Inclusive.

In?uential

and

partner

in

initiatives

that

promotesocioeconomic

development

and

quality

of

life

for

people

in

general.All

IBRAM′s

actions

are

directed

toward

building

a

new

perspectivefor

the

future

of

Brazilian

Mining

by

outlining

strategies

and

leadingthe

sector′s

transition

to

an

even

more

productive

scenario,

withsustainability,

safety

and

responsibility

to

all

those

around

it.In

this

sense,

IBRAM

works

to

strengthen

the

relationships

betweenmining

companies

and

their

various

publics,

such

as

their

professionalsand

suppliers,

the

government

and

society.

It

also

works

to

connectthe

sector.

Encourages

innovation,

disseminates

knowledge,fosters

and

disseminates

good

practices,

articulating

business

anddevelopment

opportunities

for

the

mining

industry.The

Association

is

always

open

and

willing

to

dialogue

with

otherpublic

and

private

organizations,

with

full

knowledge

of

the

facts,commitment

and

competence

to

listen,

understand,

propose,negotiate,

motivate,

engage

and

unite.

Sustainable,

responsible,

closerto

people

and

partner

of

the

Country′s

development

–

this

is

the

true#BrazilianMining.4BrazilCountryMiningGuide-202301

Executive

summaryBrazil

occupies

a

place

among

the

top

?ve

mineral

producers

in

theworld

-

producing

and

marketing

more

than

90

mineral

commodities.It

is

the

world’s

largest

producer

of

niobium

and

second

largestof

iron

ore.The

world’s

third

largest

mining

company

overall

is

theBrazilian

Vale,

leading

iron

ore

production.

Other

important

mineralsfrom

the

Brazilian

mining

sector

include

gold,

kaolin,

nickel,

coal

andphosphates.

It

presents

great

opportunities,

as

the

country

possessesproven

reserves

of

several

strategic

commodities

and

less

than

50%

ofthe

territory

is

geologically

mapped.New

mining

operations

require

environmental

licenses

at

threedifferent

stages

of

development

–

a

preliminary

environmentallicense,

an

installation

license

(before

the

start

of

construction),

and

anoperational

license.The

World

Bank

expectations

of

ongoing

slowdown

and

likely

globalrecession

in

the

world

economy,

as

well

as

a

scenario

of

high

interestrates

and

in?ation

in

Brazil

has

affected

minerals

prices.

Steel

companiesare

more

impacted

and

mining

companies

expect

a

recovery

in

theeconomic

activity

in

China

after

governmental

measures

to

boostconstruction

sector.Investment

on

the

infrastructure

front,

however,

is

expected

to

growin

the

near

future,

considering

new

government′s

declaration

ongovernmental

priorities.There

are

high

expectations

on

investments

notonly

in

thee

energy

sector,

but

also

housing,

water

and

sanitation.Thereare

45

assets

in

the

transportation

agenda

for

the

next

few

years.Thegovernment

has

opted

for

private

participation

in

infrastructure

relatedprojects

in

order

to

attract

the

required

funds.

However,

President′sdeclarations

of

reviewing

recent

regulatory

frameworks

advances

fromprevious

government

has

concerned

the

market.There

is

a

very

good

expectation

for

the

new

renewables

technologiesgrowth

in

Brazil,

such

as

offshore

wind

and

hydrogen,

as

it

has

animportant

potential

to

explore

them.

Brazil

is

one

of

the

frontrunnersin

meeting

the

carbon-emission

reduction

targets.

It

has

laid

greatemphasis

on

promoting

the

exploitation

of

renewable

energy

potentialin

the

country.

In

2021,

the

country

generated

85

percent

of

itstotal

electricity

from

renewable

sources.

In

addition

to

having

vasthydroelectricity

potential,

Brazil

also

had

has

an

estimated

20

GWin

wind

power

potential

in

2021

with

30.8

GW

forecast

by

2031.It

isexpected

that

solar

will

follow

the

same

way,

reaching

at

least

45.3

GWof

installed

capacity

by

2031.5BrazilCountryMiningGuide-202302

Country

snapshotBRAZILThe

Federative

Republic

of

Brazil,

commonly

known

as

Brazil,

is

the

?fth

largest

country

in

theworld,

and

the

third

largest

in

the

Americas,

after

the

US

and

Canada.GEOGRAPHYLocated

in

the

eastern

part

of

South

America

(10o00

S,

55o00

W)

and

spread

over

8.510.345

squarekilometers,

Brazil

is

slightly

smaller

in

size

compared

to

the

US.The

climate

in

Brazil

varies

considerably

with

latitude

and

elevation.

In

the

north,

the

climate

ismostly

tropical,

while

in

the

south,

it

is

temperate.

Brazil’s

climate

is

characterized

by

?ve

climaticregions

equatorial,

tropical,

semi-arid,

highland

tropical,CLIMATEand

subtropical.With

an

estimated

population

of

215.64

million,

Brazil

is

the

seventh

most

populated

country

in

theworld.The

country’s

population

is

relatively

young,

with

a

median

age

of

32.6

years.POPULATIONCURRENCYAverage

exchange

rate

in

Q4

2022

was:

BRL5,25:

US$1Figure1:CountrySnapshotMINING

IN

BRAZILREVENUEESTIMATEDPRODUCTION1.05BILLION

TONSR$250BILLIONSTAXES

AND

TRIBUTESMore

than90MINERALSR$86.2BILLIONScommodities

producedMore

than204THOUSANDSdirect

jobsAround2.25MILLIONindirect

jobsMore

than7,300COMPANIES123InstitutoBrasileirodeGeogra?aeEstatística2022UnitedNations2022BancoCentral20236BrazilCountryMiningGuide-202303

EIU

rankings:

Ease

ofdoing

business4Brazil

ranked

51st

among

the82

countries

covered

under

thebusiness

environment

ranking

ofthe

Economic

Intelligence

Unit(EIU).

In

the

regional

rankingsof

the

South

American

regionfor

2017-21,

which

included

12countries,

Brazil

ranked

?fth.compared

with

the

2017-21historical

period,

but

fasterimprovements

in

other

countriesmean

that

Brazil

falls

three

placesglobally,

to

54th,

and

one

placeregionally,

to

sixth.

EIU

expectsincreased

adjustments

of

someeconomic

policies

in

2023with

new

government,

such

asimprovements

in

some

categoriesof

the

business

environment,foreign

trade

and

exchangecontrols,

and

technologicalreadiness.The

labor

market

willstrengthen

but

will

remain

a

weakpoint

overall.Over

the

forecast

period

of

2022-26,

EIU

expects

Brazil

to

slightlydecreased

rank

(54st)

globally.The

2022

electoral

cycle

hasdelayed

efforts

to

consolidatethe

public

?nances,

improve

thebusiness

environment

and

enactstructural

reforms.

Accordingto

EIU,

some

factors

are

likelyto

limit

Brazil’s

growth

such

aspoor

effectiveness

of

the

publicBrazil’s

score

for

tax

isunchanged,

and

it

remainsthe

weakest

aspect

of

thesector;

a

burdensome

tax

system;

overall

investment

climate

bypoor

infrastructure;

weak

marketdynamics;

shortages

of

skilled-labor;

and

failure

to

advancestructural

as

well

as

growth-enhancing

reforms,

etc.,

alongwith

softer

Chinese

demand

andslower

credit

growth.some

margin.

However,

the

taxreform

is

expected

to

be

voted

inCongress

in

the

?rst

half

of2023,

which

may

affect

positivelythis

result.Brazil’s

overall

businessenvironment

score

rises

inthe

2022-26

forecast

periodValue

of

indexAGlobal

rankBRegional

rankC2017-212022-262017-212022-262017-212022-265.816.27515456Table

1:EaseofdoingbusinessNotea.Outof10Noteb.Outof82countries.Notec.Outof12

countries:

Argentina,Brazil,Chile,Colombia,CostaRica,Cuba,DominicanRepublic,Ecuador,ElSalvador,Mexico,Peruand

Venezuela.45EIU2022G120237BrazilCountryMiningGuide-202304

Type

of

governmentand

judiciary6,7,8Brazil

–

a

federal

republic

–

is

oneof

the

largest

democracies

in

theworld.

Voting

is

compulsory

forevery

literate

Brazilian

residentbetween

the

ages

of

18

and

69years.The

president,

elected

fora

term

of

four

years,

is

the

headof

the

state

and

the

government.The

executive

powers

rest

withthe

cabinet,

which

is

appointedand

headed

by

the

president.Control

over

the

budget

also

lieswith

the

president.an

eight-year

term,

while

thosein

the

lower

house

serve

for

afour-year

term.The

Supreme

Federal

Courtis

the

highest

court

in

thecountry,

comprising

11

justices.The

President

appoints

thejustices

and

are

approved

bythe

Federal

Senate.

Each

statehas

its

own

judicial

system.Thejudicial

system

is

responsiblefor

contesting

and

supportingany

decisions

made

by

thegovernment

that

affect

the

rightsof

Brazil’s

individual

residents.In

addition,

the

country

has

asystem

of

courts

to

deal

withdisputes

between

states

andmatters

that

lie

outside

thejurisdiction

of

state

courts.Brazil

has

26

states

and

1

federaldistrict,

which

constitute

itsadministrative

divisions.The

National

Congress

is

thelegislative

body

of

Brazil

thatfollows

a

bicameral

structure.The

Federal

Senate

(the

upperhouse)

has

81

representatives(three

from

each

of

the

26

statesIn

2022,

general

elections

wereheld

to

elect

the

president,

vicepresident,

the

National

Congress,and

three

from

the

federal

district

the

governors,

vice

governors,of

Brasilia).and

legislative

assemblies.

LuizInácio

Lula

da

Silva

becamepresident-elect

of

Brazil.The

Chamber

of

Deputies

(thelower

house)

has

513

directlyelected

members,

with

thenumber

of

deputies

fromeach

state

proportional

to

thepopulation

of

the

state

or

FederalDistrict,

with

a

minimum

limitof

eight

and

a

maximum

ofseventy

for

each.The

membersof

the

upper

house

serve

for678STF2019NationalCongresss.dBrazilianFederalConstitution19888BrazilCountryMiningGuide-202305

Economy

andfiscal

policyBrazil

is

the

world’s

twelfthGDP

GrowthMonetary

and

Fiscal

Policylargest

economy

according

tothe

latest

World

Bank

data.

Asper

the

2021

estimates

of

WorldBank

data

the

nominal

GDP

ofBrazil

was

$1.60

trillion,

while

interms

of

purchasing

power

parityit

stood

at

$3.43

trillion.

Brazil

isa

well-diversi?ed

middle-incomeeconomy,

with

developed

andlarge

mining,

manufacturing,

andservice

sectors.The

country’sservice,

industry,

and

agriculturesectors

contribute

57.8

percent,20.2

percent,

and

7.

5

percent,respectively,

to

the

total

GDP.Most

of

the

country’s

industriesare

located

in

its

southern

andsoutheastern

regions.9After

a

pandemic-inducedMonetary

and

?scal

reformsintroduced

in

1994,

whichrecession

from

COVID-19

in2020

(-3.9

percent),

the

economyrebounded

in

2021

(+5.0

percent).The

post-pandemic

recovery

wasmainly

driven

by

the

growth

ofindustry,

4.8

percent,

and

theservice

sector,

5.3

percent,

whileagriculture

sector

had

a

lowerincrease,

only

0.3

percent,

due

toadverse

weather

conditions

suchas

drought

and

frost.10included

the

introduction

of

thecurrent

currency

Real

(R$

orBRL),

the

launch

of

an

extensiveprivatization

program,

and

thefocus

shift

on

?scal

discipline,Brazil

has

signi?cantly

improvedits

macroeconomic

stability.The

in?ation

rate

was

5.79

percentin

2022,

a

drop

from

the

previousyear

(10.06

percent)

in?uenced

bythe

improved

global

and

domesticeconomic

situation

after

the

worstpart

of

the

COVID-19

pandemicwith

“price

freeze”

policies

fortransportation

fuel.12However,

the

GDP

growthrate

has

been

increasing

in

therecent

years.

It

was

estimatedat

-3.5

percent

in

2015,

but

thecumulative

growth

between2015

and

2021

was

0.4

percent.In

2023,

the

Brazilian

economyis

expected

to

witness

0.8percent

growth.119IBGE202210

BancoCentral202211

BancoCentral202212

IBGE20239BrazilCountryMiningGuide-2023Economic

stabilization,

growthand

in?ation

reduction

are

someof

the

priorities

for

the

mandateof

Brazil’s

new

Finance

MinisterChina,

the

US,

and

the

EU

beingthe

largest

trading

partners.13(20.2

percent,

to

US$

37.4).

TheAgriculture

and

Livestock

Sectorwas

the

one

with

the

biggestgrowth

in

2022

in

relation

to

2021,which

showed

an

increase

in

thevalue

of

exports

of

36.1

percent.15The

total

import

and

export

forFernando

Haddad.The

expectation

the

year

2022

was

US$272.7is

to

create

a

new

?scal

anchorin

the

?rst

half

of

2023,

and

tobring

reliability,

respect

andviability

to

his

?scal

policy

withthe

support

of

the

IMF.Despitebillion

and

US$334.4

billion,respectively.14Brazil

has

been

maintaininga

sizeable

foreign

reserve

ofUS$324.4

billion

(as

on

December31,

2021,

Banco

Central

doBrazil

has

maintained

a

positiveannual

trade

balance

since

2014this,

the

projected

in?ation

rate

for

and

reached

its

highest

value

inthe

current

year

has

undergonesuccessive

increases,

the

mostrecent

rate

being

5.74

percent

for2023,

according

to

data

providedby

the

Brazilian

Central

Bank.2022

with

a

surplus

of

$61.7

billion.

Brasil

estimates)

in

recent

years.Exports

in

2022

also

reached

thehighest

value

in

the

historicalseries,

up

19percent

from

2021.Its

public

debt

has

decreasedfrom

78.3

percent

of

GDP

in2021

to

73.5

percent

of

GDPThe

value

exported

grew

to

Brazil’s

in

2021.Moreover,

the

currentmain

trading

partners,

such

asChina

(1.5

percent

increase

in

thedaily

average,

to

a

total

of

US$91.3

billion),

the

European

Union(39.6

percent

increase

to

US$51

billion),

and

the

United

Statesdebt

represents

a

regressionForeignTradecompared

to

2018

(77.3

percentof

GDP).

Brazil’s

external

debtincreased

from

US$554.9

billion

onDecember

31,

2020,

to

US$567.5billion

as

on

December

31,

2021.16Foreign

trade

constituted

nearly40

percent

of

Brazil’s

GDP

(WorldBank

estimates)

in

2021,

withIncome

levelUpper

middle

incomeGDP

(current

US$)$1.6trillion

(2021

estimates)17EconomicStatisticsPopulation

(total)215.6

million

(January

2023

estimates)18Unemployment

rate8.7%

(3rd

quarter

2022

estimates)19In?ation

rate5.79%

(2022

estimates)2013

AgenciaBrasil202314

BancoCentraldoBrasil202315

MDIC202316

IPEA202217

World

Bank202218

IBGE202319

IBGE202220

IBGE202310BrazilCountryMiningGuide-202306

Fraser

institute

rankingsEconomic

Freedom

of

the

World202221Survey

of

Mining

Companies

202122Among

the

165

countries

covered

in

the

FraserInstitute’s

‘Economic

Freedom

of

the

World2022’

report,

Brazil

ranked

114th,

increasing

eightpositions

from

its

last

year’s

rank

as

it

scored

6.33on

a

scale

of

one

to

ten.In

2021,

Brazil

ranked

51

on

‘InvestmentAttractiveness

Index’

among

the

84

countries

inthe

Fraser

Institute

‘s

‘Survey

of

Mining

Companies2021’.

On

other

indexes

such

as

Policy

Perceptionand

Best

Practices

Mineral

Potential,

Brazil

ranked68

and

40,

respectively.Table

2

has

the

evolution

ofBrazil

in

the

ranking

position

of

the

survey.

Figure

2provides

the

country’s

scores

evolution

on

the

keyindices

of

the

survey.The

annual

peer-reviewed

report

ranked

countriesbased

on

42

data

points

to

study

the

level

ofeconomic

freedom

in

165

countries.The

reportanalyzes

the

business

and

political

environmentin

terms

of

personal

choice;

voluntary

exchange;freedom

to

enter

markets

and

compete;

andsecurity

of

people

and

privately

owned

property

inthe

following

?ve

broad

areas:?

Size

of

government:

expenditures,

taxes,

andenterprises?

Legal

structure

and

security

of

property

rights?

Access

to

sound

money?

Freedom

to

trade

internationally?

Regulation

of

credit,

labor,

and

businessBRAZILIAN

POSITION,

SURVEY

OF

MINING

COMPANIES

2021POLICY

PERCEPTION2017201820192020202166/9157/8339/7656/7768/84MINERAL

POTENTIAL59/9165/9156/8358/8348/7646/7624/7738/7740/8451/84INVESTMENTATTRACTIVENESSTable

2:BrazilianpositionintheMiningCompaniesSurvey757071.169.369.865605550454066.764.463.459.161.956.255.755.154.858.654.847.620172018201920202021Policy

Perception

indexMineral

Potential

indexInvestment

Attractiveness

IndexFigure2:Brazil’s

scores,SurveyofMiningCompanies2021Note*:ThePolicyPerceptionIndexisacompositeindexthatmeasurestheeffectsofgovernmentpolicyonattitudestowardexplorationinvestment.Note**:TheMineralPotentialindexisbasedonrespondents’answerstothequestionontheattractivenessoftheregion’s

“pure”mineralpotentialindependentofanypolicyrestrictions.Theindexratesregionsbasedontheirgeologicattractiveness.Note***:TheInvestment

AttractivenessIndexisconstructedbycombiningtheBestPracticesMineralPotentialindexandthePolicyPerceptionIndex.Theindexre?ectstheperceivedimportanceofpolicyversusmineralpotential.1211FraserInstitute202222

FraserInstitute2022BrazilCountryMiningGuide-202307

Regulatory

environment23,24,25Brazil

has

a

complex

regulatory

framework,

withjurisdiction

and

approval

processes

divided

amongmunicipal,

state,

and

federal

governments.

At

thefederal

level

the

main

institutions

involved

directlyin

the

mining

sector

are

the

ministry

the

Ministryof

Mines

and

Energy

(MME),

the

National

MiningAgency

(ANM),

and

the

Geological

Service

of

Brazil(CPRM).

However

there

are

several

entities

involvedin

the

Brazilian

government’s

regulation

of

safety,labor

and

environmental

standards.

Figure

3

showsfederal

institutions

involved

in

the

mining

sector.Civil

HouseMinistry

of

Science,Technology

andInnovationsMinistry

of

MinesMinistry

ofTreasuryMinistry

ofEnvironmentMinistry

of

Healthand

EnergySecretariat

ofSpecial

Secretariat

ofSecurity

and

LaborGeology,

Miningand

MineralTransformationBrazilian

Instituteof

Environment

andRenewable

NaturalResources

-

IBAMANationalCommission

ofNuclear

Energy

-CNENNational

HealthSurveillance

Agency-

ANVISANational

miningAgencyGeological

Surveyof

Brazil

-

SGB-CRPMFigure3:StructureofthefederalinstitutionsinvolvedintheminingsectorSource:MinistériodeMinaseEnergia2023Ministry

of

Mines

and

Energy

(MME)The

Ministry

of

Mines

and

Energy

(MME)

isresponsible

to

create

and

guarantee

the

practiceof

public

policies

related

to

the

sustainable

useof

energy

and

mineral

resources

in

Brazil.

It

has

4secretariats

which

are

responsible

for

proposingnational

guidelines

and

policies

in

its

areas

ofoperation.The

Secretariat

of

Geology,

Mining

andMineralTransformation

oversees

the

preparation

andpublication

of

global

policies

for

the

mining

sector.

Ithas

also

agencies

that

are

responsible

for

regulationand/or

supervision

of

the

activities

of

the

sectorslinked

to

the

body.The

National

Mining

Agency

is

theone

that

manages

the

use

of

mining

resources,

aswell

as

regulates

and

supervises

activities

involvingthe

use

of

mining

resources.In

addition,

another

function

of

the

MME

is

tomonitor

and

evaluate

the

performance

of

the

geology,mining

and

mineral

transformation

sectors,

with

theobjective

of

promoting

updates

and

corrections

in

theexisting

regulatory

models.With

respect

to

mining

concessions,

the

MME

issuesconcessions

and

decides

on

the

validity

or

expirationof

mining

concessions

for

speci?c

substances

notcovered

by

the

ANM,

such

as

metallic

substancesand

mineral

waters.

Likewise,

the

MME

authorizesthe

approval

of

the

assignment

or

transfer

of

thesemining

concessions.23

MinistériodeMinaseEnergia202324

OECD202225

IBRAM201912BrazilCountryMiningGuide-2023The

Secretariat

of

Geology,

Mining

and

MineralTransformation

(SGM)federal

agency

responsible