1. THE BRAZILIAN MINERAL SECTOR MINISTRY OF MINES AND ENERGY Secretariat of Geology, Mining and Mineral Processing Brasília, September, 2008

2. Summary 1. Brazil in the world 2. Brazilian laws and government's management on geology and mining 3. Mining in Brazil nowadays 4. Actions and Propositions of Lula's government

3. 1. Brazil in the world

4. Brazilian Geology

5. Pop> 150 million Country Area > 5 million [Km 2 ] GDP > 600 billion USD BRAZIL IN THE WORLD (comparing with others countries)

6. 6 Sources: World Bank, Reuters, Ipeadata 9th Economy in World – 2007 (trillion of US$ PPP) 2 BRAZIL: ECONOMIC INDICATORS

7. 7 Sources: World Bank, Reuters, Ipeadata International Reserves Growing and Low Risk Perception BRAZIL: ECONOMIC INDICATORS

8. 2. Brazilian Laws and Government Management on Geology and Mining

9. Art. 20 – Brazilian State is the owner of the following goods: IX – mineral resources, including underground Art. 22 – Brazilian State has exclusive competence to make the laws on: XII – mines and other mineral metallurgical resources; XVIII – national geological, cartographic and statistics systems. BRAZILIAN FEDERAL CONSTITUTION - 1988

10. 10 The Mining Code The systems for exploration and exploitation of mineral resources, can be classified as follows: Broad Application Authorization Concession Restricted Application Licensing Small-scale Mining Permission Register of Extraction Systems

11. Minister Bureau Legal Advisory Economic Advisory Executive Secretariat MINISTER OF MINES AND ENERGY Secretariat of Planning and Energetic Development Secretariat of Oil, Natural Gas and Renewable fuels Secretariat of Electric Energy Secretariat of Geology, Mining and Mineral Processing ANEEL ANP DNPM AUTARCHIES ELETROBRÁS PETROBRAS MIX ENTERPRISES EPE CBEE CPRM PUBLIC COMPANIES

12. Secretariat of Geology, Mining and Mineral Processing National Department of Mineral Production – DNPM Autarchy manager of the Brazilian Mineral Assets BRAZILIAN BUREAU OF MINES Company of Research and Mineral Resources– CPRM (act as the Geological Survey of Brazil) Public Company responsible for the generation and diffusion of the basic geological and hydrological knowledge of the Country GEOLOGICAL SURVEY OF BRAZIL Department of Political Administration of Geology, Mining and Mineral Processing Department of Geology and Mineral Production Department of Processing and Mineral Tecnology Department of Sustainable Development in the Mining

13. 3. Mining in Brazil nowadays

14. More attractive economies for location of foreign investments 2007 – 2009 Brazil – 5 th Position Brasil

15. 2004200520062006 / 05 Brazil GDP1.0001.0291.0673,7 % Industry GDP3013133233,4 % M&TM GDP44,047,848,20,8 % M&TM in the Brazilian Industrial GNP 4,4 % 14,6 % 4,7 % 15,3 % 4,5 % 14,3 % External Trade (US$ billios) Brazilian Commercial Surplus 33,744,846,12,9 % Commercial Surplus M&TM 10,415,017,315,3 % M&TM Brazilian Surplus 31,0 %33,7 %37,5 % Sector economic data (US$ billions) Source: Sinopse M &TM, 2007, DTTM/SGM/MME

16. Niobium(1º) Iron (1º) Manganese (1º) Bauxite (2º) Tantalum (2º) Graphite (3º) Amianthus(4º) Global PlayerExporter Self Sufficiency Dimension Stones Kaolin Magnesite Vermiculite Mica Limestone (cement) Chrome Industrial Diamond Titanium Gold Talc Nickel Mineral Production: Brazilian World Ranking External dependence Phosphate Cooper Zinc Diatomite Tungstenium Potassium Sufur Metallurgic Coal Rare Earth Elements Importer /Producer

17. Main Brazilian Mineral Provinces Carajás: ferro, cobre, níquel

18. Iron Ore Overall Reserves (tons): 21 billion MAIN DEPOSITS 1 - Serra dos Carajás - PA 2 - Quadrilátero Ferrífero- MG 3 - Urucum - MS 4 - Rio Peixe Bravo - MG 5 - Guanhães, Morro do Pilar - MG 1 2 3 4 5 Carajás N4W Mine (Parauapebas – Pará State) 40,2 million t/y ROM

19. Chromium Ore Overall reserves of contained metal (tons): 7 million MAIN DEPOSITS 1.Vale do Jacurici - BA 2.Pindobaçu - BA 3.Campo Formoso - BA 4.Dom Joaquim - MG 5.Piuí-Nova Rezende - MG 6.Mazagão - AP 7.Fazenda Lageado - GO 7 5 4 1 6 2 3 Ipueira Mine (Andorinhas-Bahia State) 738 thousand t ROM

20. Nickel Ore Overall reserves of contained metal (tons): 8.3 million MAIN DEPOSITS 1.Puma - Onça - PA 2.Vermelho - PA 3.S.João do Piauí - PI 4.Niquelândia - GO 5.Barro Alto – GO 6.Americano do Brasil - GO 7.Fortaleza de Minas - MG 8.Morro do Níquel - MG 9.Jacupiranga - SP 4 6 5 7 1 2 3 8 9 Niquelândia Mine (Niquelândia - Goias State) 4,4 million t/y ROM

21. Aluminum Ore Overall reserves (tons): 4.3 billion MAIN DEPOSITS 1.Trombetas-Oriximiná - PA 2.Paragominas - PA 3.Almeirim - AP 4.Sudeste de Minas Gerais 5.Poços de Caldas - MG 6.Morro Redondo - RJ 4 1 2 3 5 6 Aviso’s Mine (Poto Trombetas-Pará State) 12 million t/y ROM

22. 4.Actions and Policies of Lula's Government

23. Development Strategy of the Brazilian Government (President Lula) The conditions for sustainable economic growth have been established. To keep this favorable scenario, it is necessary to:  Reduce external vulnerability by increasing export surpluses (MINING);  Attract foreign investments (MINING);  Strengthen internal market (MINING).

24. Mineral Development Strategies  Improving geological and aerial geophysical knowledge  Diversifying and expand mineral production  Adding values to mineral goods  Stimulating investments in infrastructure  Developing the Brazilian equipment industry and services

25. 2008 PRIORITIES MODERNIZE MINING REGULATION WITH MORE SAFE, SECURE AND TRANSPARENT PERMITS Geology, Mining and Mineral Processing Long Term Policy Plan 2008 – 2028 Strenthening actions to improve small scale mining NEW LEGAL BENCH MARKS: mining in native Brazilian lands and in the country border zone. BRAZILIAN MINERAL POLICY (1)

26. New Geological and airborne geophysics Geological Survey of Brazil (CPRM) Main Mineral States (Goiás, Minas Gerais, Bahia, Pará states) Attract investments for mineral exploration and reduce risks BRAZILIAN MINERAL POLICY (2)

27. Modernize and Strengthen the Mining Bureau DNPM Efficiency, Safety and Transparency in the Mining Concessions BRAZILIAN MINERAL POLICY (3)

28. USEFUL LINKS http://www.mme.gov.br Ministry of Mines and Energy http://www.cprm.gov.br Brazilian Geological Survey http://www.dnpm.gov.br National Department of Mineral Production