In the first quarter of 2024, the mining sector demonstrated notably superior performance compared to the same period in the previous year. Revenue recorded an increase of 25%, while exports grew 18.3%.
These numbers were released by the Brazilian Mining Institute (Ibram), which represents the main companies in the sector in the country. In addition to presenting the results, the institution’s directors criticized the implementation of the Selective Tax, as proposed in the tax reform.
The sector’s total revenue in the first quarter of 2024 reached R$68 billion. This 25% increase was mainly driven by the two main ore-producing states, which recorded growth above the national average. Minas Gerais, with an increase of 29% compared to the same period of the previous year, reached revenues of R$28.2 billion. Meanwhile, Pará saw an increase of 34%, reaching R$25.1 billion.
Mining sector
Iron ore was responsible for 64.2% of the sector’s total revenue, standing out as the product with the greatest impact on performance. Next come copper, with a 7% share, and gold, with 6.8%.
Julio Nery, sustainability director at Ibram, noted that this year’s rains did not have as negative an impact as in the past, contributing to better performance. He emphasized that projections for the remainder of the year are also optimistic, as indicated by partial reports from companies in the sector.
Selective Tax
Ibram expressed concern about the implementation of the Selective Tax, arguing that, as proposed, the tax assumes a predominantly collection nature. Rinaldo Mancin, director of institutional relations at Ibram, highlighted the institution’s commitment to providing qualified information and presenting studies on competitiveness and taxation.
The Selective Tax, which has as its principle selectivity to discourage the consumption of certain goods, was adopted by other nations and is known in English as “Sin Tax” (sin tax). In Brazil, it is one of the new taxes provided for in the tax reform approved the previous year, but its implementation requires a Complementary Law to regulate the products to be taxed, the rates and the rules.
In addition to introducing the Selective Tax, the tax reform provides for the unification of ICMS and IPI with three other taxes from 2033, aiming to simplify the tax system. However, Ibram disagrees with the collection of the Selective Tax, although it shares a convergent vision with tax reform.
Mining map
Raul Jungmann, CEO of Ibram, commented on the survey of industrial mining and mining areas carried out by MapBiomas. The data shows that since 2018, mining areas have surpassed industrial mining areas, and mining as a whole grew by more than 600% in Brazil between 1985 and 2020.
In 2020, mining areas totaled 107.8 thousand hectares, while industrial mining explored 98.3 thousand hectares. Most of the mined areas are in the Amazon Forest (72.50%), followed by the Atlantic Forest (14.7%) and the Cerrado (9.9%).
Jungmann expressed concern about bills that are being processed quickly in Congress, without proper discussion, warning of proposals that could facilitate the expansion of mining, including illegally.
Illegal mining
Ibram has been pushing for greater supervision of illegal mining and for discussions on the regulatory framework. While mining companies can refine, smelt and export extracted minerals, miners are only allowed to extract locally and sell to Distribuidoras de Titos e Valores Mobiliários (DTVMs), which act as intermediaries in the process of selling gold and other minerals to the financial and international market.
(With Agência Brasil).
