The iron ore segment will account for US$ 17 billion of the total
Brazilian industrial institute IBRAM predicts that investment in the country's mining industry in 2024-2028 will be US$64.5 billion. S&P Global.
This is 28.8% more than previous study calculations covering 2023-2027 (about $50 billion).
Of the investments planned for 2024-2028, the iron ore segment will represent 17 billion dollars, or 26.8% of the total, which is 2.1% higher than the value indicated in the previous study.
16.6% of the total (US$10.67 billion) will be spent on social and environmental activities, 16% (US$10.36 billion) on logistics.
The country's mining sector recorded profits of 248.2 billion reais ($50.50 billion) in 2023, a 0.7% drop from the previous year, partly due to lower market prices for some goods.
Brazil increased mineral exports by 9.5% year on year last year, according to IBRAM. – up to 392.34 million tons. Iron ore accounted for 71% of exports, the volume of deliveries of this raw material abroad increased by 10% year on year – up to 378.5 million tons. In monetary terms, iron ore exports amounted to US$30.5 billion, which represents an increase of 5.7% compared to 2022.
At the Institute rate , the data points to a positive outlook for the sector in 2024 and beyond. The new industrial policy, announced in January this year, identifies mining as the country's strategic sector to achieve Brazil's economic goals, focusing on the energy transition, decarbonization and technological development of the national industry.
We would like to remind you that the largest consumer of iron ore from Brazilian mining companies at the end of last year was China – 260.9 million tons (+9% y/y). Malaysia consumed 21.1 million tons of iron ore (+16% annual), Japan – 13.7 million tons (+18% annual), Bahrain – 11.4 million tons (-6% r./ y), Oman – 10.3 million tons (+1% y/y). Other countries imported 63.1 million tons of ZRS from Brazil.
The country exported 39.65 million tons of iron ore in December 2023, the highest amount in one year. Compared to December 2022, it increased by 24% y/y, and compared to the previous month, 25.5%.
