Ministrio de Minas e Energia Secretaria de Geologia

Ministério de Minas e Energia Secretaria de Geologia, Mineração e Transformação Mineral Small – Scale Mineral Production in Brazil CURRENT DAYS AND PROJECTION FOR THE FUTURE CASM - Communities and Small - Scale Mining Brasília, 8 de outubro de 2008 1

Summary I. Brazilian Constitution and government's management on geology and mining II. Actions and Propositions of Lula's government III Actions and Propositions of Lula's government to small scale mining 2

I. Brazilian Constitution and Government’s Management on Geology and Mining 3

BRAZILIAN FEDERAL CONSTITUTION - 1988 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 – mining and metallurgy; XVIII – national geological, cartographic and statistics systems. 4

MINISTER OF MINES AND ENERGY Minister Bureau Executive Secretariat Legal Advisory Economic Advisory Secretariat of Planning and Energetic Development AUTARCHIES ANEEL ANP DNPM Secretariat of Oil, Natural Gas and Renewable fuels Secretariat of Electric Energy MIX ENTERPRISES ELETROBRÁS PETROBRAS Secretariat of Geology, Mining and Mineral Processing PUBLIC COMPANIES EPE CBEE CPRM 5

Secretariat of Geology, Mining and Mineral Processing Department of Political Administration of Geology, Mining and Mineral Processing Department of Geology and Mineral Production National Department of Mineral Production – DNPM Autarchy manager of the Brazilian Mineral Assets BRAZILIAN BUREAU OF MINES Department of Processing and Mineral Tecnology Department of Sustainable Development in the Mining 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 6

II. Actions and Policies of Lula's Government 7

Brazilian Geology Brazilian Ores… 8

Brazilian World Ranking in Mineral Production Global Player Niobium(1º) Iron (1º) Manganese (1º) Bauxite (2º) Tantalum (2º) Graphite (3º) Amianthus(4º) Importer Self Sufficiency /Producer Dimension Stones Limestone Phosphate Potassium (cement) Kaolin Cooper Sufur Chrome Magnesite Zinc Vermiculite Industrial Diamond Metallurgic Coal Mica Titanium Exporter Diatomite Tungstenium External dependence Rare Earth Elements Gold Talc Nickel 9

Mining Sinopsis & Metalic and Non Metalic Mineral Transformation 2005 Brazil GDP US$ billions 2006 2007 / 06 External Trade – Mineral Sector (1978 – 2007) 1. 029 1. 067 1. 314 5, 4 % Industry GDP 313 323 398 5, 5 % M&TM GDP 47, 8 48, 2 59, 7 5, 9 % M&TM no PIB Industrial 15, 3 % 14, 3 % 15, 0 % External Trade (US$ billions) Brazilian Commercial Surplus 15, 0 17, 3 17, 4 15, 3 % Commercial Surplus M&TM 44, 8 46, 1 40, 1 2, 9 % M&TM / Brazilian Surplus 33, 7 % 37, 5 % 43, 5 % Fonte: Sinopse M &TM, 2007 , DTTM/SGM/MME US$ Mil 10 Fonte: DNPM, SECEX

GEOLOGIC KNOWLEDGE 1: 500. 000 1: 250. 000 1: 100. 000 detail 32% 1: 500. 000 54, 6% 1: 250. 000 Retomada dos Levantamentos PLGB: 1995 -2002 14 % 1: 100. 000 PLGB integração Pré PLGB 11

PER CAPITA CONSUMPTION OF MATERIALS (2006) (kg/hab) MATERIAL BRAZIL WORLD CHINA Ciment Steel Copper Aluminum 206 110 1, 8 4, 5 380 190 2, 6 4, 9 800 286 2, 2 7, 0 Fonte: Sumário Mineral DNPM, 2007 12

Mine in Nova Iguaçu, Rio de Janeiro 13

Mineral Development Strategies ØImproving geological and aerogeophysical knowledge ØDiversifying and expand mineral production ØAdding values to mineral goods ØDeveloping equipment and services Ø Mining in order to promote local, regional and national sustainable development 14

BRAZILIAN MINERAL POLICY 2008 PRIORITIES Geology, Mining and Mineral Processing Long Term Policy Plan 2008 – 2028 Improving modernization of Mineral Code and governmental institutions that generate and spreading geological and hydrological knowledge (CPRM), and monitoring the mineral resources of the Country (DNPM); Continuing geological mapping and airborne geophysical survey; STRENGTHENING ACTIONS TO IMPROVE SMALL - SCALE MINING 15

GEOLOGICAL MAP OF BRAZIL 1: 1. 000 - in SIG q 46 sheets avaliables in CD ROM q Text – book with DVD August, 2005 16

GEODIVERSITY MAP OF BRAZIL - 1: 2. 500. 000 2006 17

STATES DIAGNOSTICS PROGRAM Relationship with states for development of Diagnostics and State Gudelines for Public Policy for the Mineral Sector Situação maio 2008 Estados com diagnósticos concluídos anteriormente a 2003 Estado Ano conclusão Mato Grosso 2002 Goiás 2002 Estados com diagnósticos concluídos entre 2003 -2008 Estado Ano conclusão Piauí 2005 Rio Grande do Norte 2005 Rio de Janeiro 2008 Tocantins 2008 Estados com diagnósticos em curso ou * em contratação – 2008 Estado Ano contratação Amapá 2007 Sergipe *2008 Amazonas *2008 Maranhão *2008 Acre *2008 Estados com realização prevista para 2009 -2010: Pará, Roraima, 18 Bahia, Rondonia, Ceará, Paraíba

III. Actions and Policies of Lula's Government for Small Scale Mining 19

IMPORTANCE OF SMALL – SCALE MINING IN BRAZIL Account for about 73% of mining companies. Responsible for about 25% of the total amount of employment in the formal mineral activity. Dominates the production of: Shale, Sand, Gravel, Limestone, Gems, Gypsum, Granite, Bentonite, Calcite, Diamond, Feldspar, Mica, Silex, Talc, Quartz, Cassiterite. 20

Small – Scale Mining Problems Informality, hidering financial, technical and manangerial support; Precarious mineral processing and treatment, not always providing desiderable recovery; The quality of the final production often does not meet the requirements of the market, hidering the trade; Often damage the health of workers and enviromental factors that could be avoided or minimized. 21

Small – Scale Mining Problems Insufficiency of geological information; No utilization of available technologies ; Labor worker without the necessary qualification; Little knowledge of the market; Low level of administrative structure. 22

National Seminars of Mineral Cooperatives 2005 2006 2007 Average participants: 300 Main Objective: national discussion and organization of mineral cooperatives in order to better define demands and solutions for the problems 23

National Program on Legalization 100. 000 Workers benefited by the Program until 2008 Serra Pelada (ouro) Apuí (ouro) São Luis (areia) 9 municípios RN, PB, (gemas, caulim) Tapajós (ouro) Recife (areia) Juína (diamante) 7 municípios nordeste de MG (gemas, feldspato) 9 States 89 Municipalities Coromandel (diamante) Curitiba e 27 municípios do norte (argila) 3 municípios na Serra da Canastra (quartzito) Itariri, Itaquruçú, Igrejinha (ametista), Itaoca (areia) Porto Alegre e 37 municípios (areia) 24

Arrangements Productives of Mineral Base ARRANJOS PRODUTIVOS LOCAIS DE BASE MINERAL Shale -AP Opal de Pedro II - PI Gems and jewlery - Pará Calcareous and shale – CE Shale -TO # Gypsum - PE Quartzite/Shale- GO Dimension Rock - BA Shale – MG Quartzite – MG Pedra Sabão – MG Calcareous, Talc - PR Gems and jewlery RS Industrial Minerals – RN-PB # Gems and jewlery - MG Dimension Rock - ES Dimension Rock - RJ Ceramic - SP Ceramic - SC 25

Capacity building of the ceramic – pottery sector Macapá São Miguel do Guamá Belém São Luís Iranduba Manaus Itapecurú Mirim Itaituba Fortaleza Russas Timon # Teresina Assu # # Campo Maior Limoeiro Natal do Norte Caruaru Recife Marabá Porto Velho Palmas 16 ESTADOS CONTEMPLADOS # Cacoal # Pimenta Bueno Alagoinhas Salvador LOCALIDADE Nº Participantes Teresina/PI 20 Russas/CE 55 Assu/RN 21 Alagoinhas/BA 26 S. Miguel do Guamá/PA 12 Porto Velho/RO 19 Macapá/AP 50 Itapecurú/MA 50 Socorro/SP 28 Foz de Iguaçu/PR 45 Iranduba/AM 56 Goiânia/GO 44 Assu/RN 21 Morro da Fumaça/SC 23 Monte Carmelo /MG 44 Itaituba/PA 27 TOTAL 541 local dos 16 cursos/UF Mara Rosa Cuiabá Anicuns # Nazário # PERÍODO 2005 - 2006 Goiânia # Anápolis Goiânia Monte Carmelo Ituiutaba Campo Grande (2) Pres. Prudente Itauna Colatina Belo Horizonte Itu Socorro Cornélio Procópio São Paulo Curitiba Foz do Iguaçu S. João Batista Florianópolis Criciúma Morro da Fumaça Porto Alegre Pelotas Campos Itaboraí Rio de Janeiro previsão de 22 cursos em 13 UF PERÍODO 2007 - 2008 26

Seminars and short techinical training and management in the sector of minerals aggregates for construction. (2005 -2006) All Brazilian States 1. 500 producers of sand NACIONAL PLAN OF AGGREGATES 27

Quilombolas Inclusion Production through the Mineral Activity Quilombos are indepent territories where the liberty, the social – politicies, economics and culturals dimensions are significant to the maintenance of their identity. Communities in Brazil: 5. 200 SGM WITH SECRETARIA ESPECIAL DE POLÍTICAS DE PROMOÇÃO DA IGUALDADE RACIAL - SEPIR 28

Plan of Implementation Agenda 21, Rio + 10 Paragraph 46 Mining, the minerals and metals are important for the economic and social development of many countries. Mineral is essencial for the modern life. O Setor Mineral Project: Diagnosis of the Mineral Sector as a subsidy to the deployment of Agenda 21 Mineral Municipalities: Nova Era (MG), Coromandel (MG), Campos Verdes (GO), Tenente Ananias (RN), Pimenta Bueno (RO), Vila Pavão (ES) Campos Verdes – GO / 2007 AGENDA 21 MINERAL IN LARGE MINERAL MUNICIPALITIES: Ouro Preto, Mariana, Arcos, Congonhas, Itabira, Paracatu, Corumbá 29

NATIONAL PROGRAM OF MINERAL EXTENSION ACTIVITY Objective: Consolidate actions to promote and support the small – scale mining Bases of national action: PORMIN is a tool for spreading information and capacity building. MINERAL TELECENTERS are physical structure for extension activities Coordination: SGM, DNPM, CPRM 30

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Mineral Telecenters and Centers of Digital Inclusion Pedro II Manicoré Santana do Cariri Canaã dos carajás Currais Novos Humaitá 27 TELECENTERS AT THE MUNICIPALITIES Nova Palmeira Boa Vista Monte Santo, Palmas Viitória da Conquista Juína Itambé Cristalina Teófilo Otoni, Araçuaí, Coronel Murta, Salinas Corinto, Joaquim Felício Chopinzinho Coromandel, Monte Carmelo Guapiara Ametista do Sul Morro da Fumaça 27 Centers of Digital Inclusion in the Municipalities (Final fase of implementation) Edital to new 19 Telecenters 32

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 THANK YOU 33