10/09/07

Delays and hurdles to securing environmental licenses are taking a toll on bauxite mining in Brazil`s Minas Gerais state, Marcelo Ribeiro Tunes, mineral affairs director at mining institute Ibram, told BNamericas. Also, communities in project areas are opposed to mining operations, according to Tunes. “Initiatives are underway to host presentations for the population in order to show the benefits of bauxite mining and try to stop opposition to the activity,” he said. Meanwhile, Brazil`s aluminum industry is facing problems due to high power costs, Tunes said. “We have many bauxite deposits and great hydroelectric potential,” the Ibram executive said, adding the high price of energy is forcing aluminum makers to set up plants in locations where power is cheap, such as the Middle East. According to data divulged in a seminar promoted by Ibram in late August, Brazil has the third largest bauxite reserve in the world – of 5.9Bt – in Minas Gerais and also in northern Pará state. Bauxite producers in Brazil include Mineração Rio do Norte, controlled by Rio de Janeiro-based mining and metals group CVRD (NYSE: RIO) and aluminum company CBA, among others.

Business News Americas