News

16/10/24

The mining sector recorded a 5% increase in revenue during the third quarter of this year (Q3 2024), compared to the same period in 2023 (Q3 2023), totaling BRL 56.7 billion. In Q3 2024, the positive balance resulting from the difference between mineral imports and exports (USD 8.74 billion) accounted for 50% of Brazil’s total trade balance. According to Raul Jungmann, CEO of the Brazilian Mining Institute (IBRAM), “This mining result was significant, as it helped mitigate the decline in the trade balance,” which fell by 35%, dropping from USD 26.99 billion to USD 17.51 billion between Q3 2023 and Q3 2024. With over 221,000 direct jobs (and more than 2 million indirect jobs), the mining sector generated 8,786 new positions between January and August 2024, according to official data from IBRAM.

Jungmann presented the mining industry data on Wednesday (October 16), based on information collected by IBRAM. The data is available on the IBRAM website.

Strategic Operational Agreements to Boost Brazil’s Mining Sector

Looking ahead, IBRAM projects that newly established cooperation agreements will be crucial for driving productivity and business in the mining sector. These agreements include partnerships between IBRAM and the Brazilian Service of Support to Micro and Small Enterprises (Sebrae), IBRAM and ApexBrasil, as well as the National Mining Agency (ANM) and the Brazilian Agency for Industrial Development (ABDI). The agreement between ANM and ABDI aims to fund modernization efforts in the agency’s operational processes. The cooperation agreement between IBRAM and Sebrae focuses on training mining companies to make them more competitive, with actions aimed at improving governance, workforce, and production. The agreement between IBRAM and ApexBrasil seeks to attract international investment to the sector and open up international markets for Brazilian mining companies.

Criticism of Selective Tax 

Regarding the positive sector data for Q3 2024, IBRAM’s president noted that “the result of the mining industry directly reflects the performance of the Brazilian economy, and the numbers prove that.” He emphasized that, “if mining has legal security, predictability with stable regulations, and lower costs, including taxes, it can significantly contribute to boosting economic indicators.” He also referenced the ongoing debate in the Federal Senate over the regulation of tax reform, which could impose a selective tax on mining, adding extra costs to the industry.

The selective tax is rejected by IBRAM, as the sector already pays compensation for its environmental impacts. The tax would harm Brazil’s international mining competitiveness, and is traditionally applied to goods that pose health or safety risks, such as beverages, tobacco, firearms, etc. “Minerals do not fit into this category; they are public goods, raw materials for all industries, and essential for agribusiness and energy transition. Therefore, they should not be subject to the selective tax,” stated Jungmann.

Amazon in Focus at Conference 

During the press briefing, IBRAM also shared further details on various issues, including environmental and climate-related topics concerning the Amazon, which will be discussed from November 6 to 8 at the second edition of the International Amazon and New Economies Conference in Belém, Pará. The event is organized by IBRAM in partnership with the state government of Pará. The conference is free to attend and is presented by Vale, with sponsors including BHP (Master category), Hydro (Premium category), Itaú and MRN (Belém category), Alcoa (Waste Management category), and FIEPA (Industry category).