Iron ore

The iron ore segment will account for $17 billion of the total amount

The Brazilian industry institute IBRAM predicts that investments in the country’s mining industry will amount to $64.5 billion in 2024-2028. This is reported by S&P Global.

This is 28.8% more than the estimates of the previous study covering 2023-2027 (about $50 billion).

Of the investments planned for 2024-2028, the iron ore segment will account for $17 billion, or 26.8% of the total, which is 2.1% more than the amount in the previous study.

Social and environmental activities will account for 16.6% of the total ($10.67 billion), and logistics will account for 16% ($10.36 billion).

In 2023, the country’s mining sector registered a profit of R$248.2 billion ($50.50 billion), down 0.7% year-on-year, partly due to lower market prices for some commodities.

According to IBRAM, last year, Brazil increased its mineral exports by 9.5% y/y – to 392.34 million tons. Iron ore accounted for 71% of exports, while the volume of supplies of this raw material abroad increased by 10% year-on-year – to 378.5 million tons. In monetary terms, iron ore exports amounted to $30.5 billion, up 5.7% compared to 2022.

According to the Institute, the data indicate positive prospects for the sector in 2024 and beyond. The new industrial policy, announced in January 2024, defines the mining industry as a strategic sector of the country to achieve Brazil’s economic goals with a focus on energy transition, decarbonization and technological development of the national industry.

As GMK Center reported earlier, China was the largest consumer of iron ore by Brazilian mining companies last year, with 260.9 million tons (+9% y/y). Malaysia consumed 21.1 million tons of iron ore (+16% y/y), Japan – 13.7 million tons (+18% y/y), Bahrain – 11.4 million tons (-6% y/y), Oman – 10.3 million tons (+1% y/y). Other countries imported 63.1 mln tonnes of iron ore from Brazil.

In December 2023, the country exported 39.65 million tons of iron ore, the highest figure for the year. Compared to December 2022, it increased by 24% y/y, and by 25.5% compared to the previous month.