Brazil's mining sector 'to grow during 2009'
Date added: 9th April, 2009 at 09:45
(view all articles from April, 2009)
A new report into the mining industry in Brazil has concluded that the sector is poised for growth in 2009, news which could be good for potential investors in the Latin American country.
Business Monitor International's research, using statistics from the first quarter of the year, found that not only will the sector expand in real terms this year, it will increase by 70 per cent by 2012 to become worth $41.65 billion (£28.35 billion).
It also stated that Brazilian exports will increase by an average of 12.4 per cent a year as the country grows more self-sufficient.
The news follows a series of new natural resource discoveries this year and in 2008 - Horizante Minerals recently announced "encouraging results" after beginning work on the Carajas Mineral Province's Tangara Gold Project, while mining exploration company Luna Gold said in September that its Aurizona project in Maranhao, north east Brazil, had been delivering "great results" that surpassed those forecasted.
Meanwhile, the diamond mining industry is also looking promising for Brazil - according to Khulsey.com, the best locations for future discoveries are in Matto Grosso and Bahia states and activity has picked up in anticipation of finding new deposits.
Brazil has an extensive mining industry thanks to its wealth of natural resources, including iron ore, bauxite, copper, tin, gold and emeralds.
The country produces a quarter of the world's iron ore output and is second only to Canada in terms of alluvial diamond production, Companies and Markets states.
However, Brazil is no longer simply relying upon its natural resources, but is working towards more sustainable development. It now leads the world in the production of biofuels and is the world's second-largest producer of renewable resources, according to greenlandsecurities.com.
Unlike western countries including the UK and the US, it does not import petroleum products from the Middle East, instead producing fuel from sugar cane in the form of ethanol, meaning it is not at the mercy of fluctuating oil prices and potential conflict.
Hydroelectric power is also an important resource for the Latin American country, since it is home to over a third of the world's reserves of fresh water, much of which is fast flowing.
Indeed, over 85 per cent of Brazil's energy now comes from renewable resources, which could have significant benefits for its economy as non-renewable resources are depleted.
These factors have combined to make Brazil among the most industrialised countries in South America and the most developed country economically in Latin America, Encarta figures attest.