Brazilian Mining Industry 2015-2019
Outlook of the Brazilian mining industry
Technavio's market research analyst predicts the Brazilian mining industry to witness a steady growth at a CAGR of around 5% during the forecast period. The increased demand for minerals globally is driving the growth of this market. Brazil is rich in mineral ores and is one of the chief exporters of minerals. For instance, China is heavily dependent on Brazil for iron ore for its steel production. The growth of the global automobile industry is also creating a demand for various products thereby driving the Brazilian mining industry.
The difficulty in procuring licenses for mining is expected to deter the market growth during the forecast period. Brazil has a very complex regulatory framework for the mining sector. Approval processes and jurisdiction is divided among the federal, state, and municipal governments. Mineral exploration licenses are approved by the DNPM at the federal government level, and development concessions are issued by the MME. The licenses are renewed on the basis of the final exploration report.
Segmentation by minerals and analysis of - aggregates, iron ore, bauxite, and phosphate concentrate
The aggregates segment dominated the market during 2014 with a market share of 54% and is anticipated to witness the fastest growth during the forecast period. The increased demand from the construction sector is driving the growth of this segment. For instance, nearly 10 thousand tons of aggregates is required for paving a road of one kilometer while a 50 square meter low-cost house requires 68 tons of aggregates. Minas Gerais, Sao Paulo, Rio de Janeiro, and Parana are the key regions in Brazil driving the growth of the aggregate segment.
The report offers an analysis of each of the following segments and discusses its impact on the overall market growth -
Technavio Announces the Publication of its Research Report – Brazilian Mining Industry Outlook 2015-2019
Technavio recognizes the following companies as the key players in the Brazilian Mining Industry Outlook: VALE, MMX Group EBX, Votorantim Metals, Alumar Consortium and MRN
Other Prominent Vendors in the market are: Anglo American, AngloGold Ashant, and ArcelorMittal.
Commenting on the report, an analyst from Technavio’s team said: “Brazil in undergoing a major change in terms of economic and infrastructure development. Also, improvements in HR policies are expected to further enhance employee satisfaction and will help in retaining employees. By developing employee's schemes, senior employees can be retained in the company, thus using their knowledge and skills for the betterment of the company.”
According to the report, Brazil was facing a major problem in a lack of infrastructure due to which the mining industry was also becoming affected in terms of transport, development, talent retention, and profits. Due to initiatives taken by the government and global events, such as the Olympics, Brazil is investing in the development of infrastructure.
Further, the report states that dealing with declining iron ore quality is a major threat to the Brazilian mining industry.
VALE, MMX Group EBX, Votorantim Metals, Alumar Consortium, MRN, Anglo American, AngloGold Ashant, and ArcelorMittal.