DO

BR

A

Min

ing

Indu

stry

Trends for the sector within the sustainability framework

• Implementing and maintaining ethical businesspracticesandsoundcorporategovernancesystems;

• Contributing to the conservation of biodiversity andintegratedapproachestolanduseplanning;

• Supporting and encouraging the development, use,reuse, recycling, and disposal of our products in aresponsiblemanner;

• Contributing to the social, economic and institutionaldevelopmentofthosecommunitiesthatliveintheareaswhereminingoperationsarecarriedout;

• Establishing effective and transparent agreementswiththestakeholdersforcommitment,disclosureandindependentverificationofinformation.

• Pursuingongoingimprovementofitshealthandsafetyandenvironmentalperformance.

Opportunities available to the mining sector related to Green economy

• Metals and minerals have proven ability to becontinually recycled, alleviating the pressure on theuseofprimaryresources;

• Technological innovations that promote energyefficiencyareonlypossiblethankstotheuseofmetals.

• Itisessentialforthedevelopmentof‘hightech’greentechnologies,suchasthoseinelectricvehicles,hybridbatteries;

Industry MeetIng for sustaInabIlIty

MInIng & green eConoMy

• The alternative use of minerals in innovativetechnologiescontributestoboostefficiencyandlowerenergyconsumption;

• Therapidgrowthofthesectorinabsolutetermshascontributed to developing the economy and reducepovertyinthecountry;

• Mining industry acts both as a foundation and as acatalystforlocaleconomicandsocialdevelopment;

• Thedevelopmentofaminingprojectinamunicipalityincreasesthelifequalityofthepopulationand,duetoits long termprofile, itgeneratesaseriesofpositiveimpactsforthelocalandregionaleconomy;

• Theimpactsgeneratedbymininghasdirect,indirectand inducedeffects on the supply chain towhich itbelongs;

• The entrepreneurial action of the local community,businesspeople and leaders is determinant of theextent of the positive impact of investments arisingfrommining.

Photo:Dario

Zalis

DO

BR

A

MInIng & green eConoMy

Economic and Socio-environmental Profile

The mining sector provides a major socio-economic contribution to the Brazil and theworld. It accounts for much of GDP growth,

enables investments in infrastructure and logistics, intechnologydevelopment,andinimprovedprofessionalqualification. When used adequately, the proceedsfromminingsupport thesocioeconomicdevelopmentof the communities locatedaround theminingareas.Moreover,ifmanagedresponsibly,theminingbusinesspromotes conservation of the environment andecosystemservices,keepingitthroughoutitsexistenceandafterendingtheiractions.

Relevance of BRazil in the gloBal mining pRoduction

globalexporterPlayer

exporter Self-sufficientimporter/ producer

Reliance on foreign Soucers

Niobium (1st)

Iron Ore (2nd)

Manganese (2nd)

Tantalite (2nd)

Nickel

Magnesium

Kaolin

Tin

Limestone

Industrial Diamonds

Titanium

Copper

Metallurgic Coal

Potash

Graphite (2nd)

Bauxite (2nd)

Ornamental Rocks (4th)

Vermiculite

Chromium

Gold

Tungsten

Talc

Phosphate

Diatomite

Zinc

Sulphur

Rare Earths

Strategic Itens

Source:DNPM/Ibram/MME

gRoWth of BRazilian mineRal pRoduction (IN uS$ BILLIONS)

Source:Ibram,2011

Theminingindustryplaysapivotalroleinboostingtheeconomy of Brazil – it accounted for 3% to 4%of theGDPand20%oftotalexports,generating175thousanddirect jobs and 2.2 million indirect jobs, i.e., 8% ofindustrialjobsin2010.

From the year2000, increaseddemand forminerals –especiallyduetothehighrateofglobalgrowth–boostedthevalueofPMB(anacronymthatstandsfor‘BrazilianMineral Production’ in Portuguese). In 2001-2011, thevalue of the PMB grew by 550% – jumping from $7.7billion to$50billion in2010,according to theNationalMiningPlan(PNM/2030).

Environmental Conservation

Several mining companies have pursued biodiversitymanagementstrategiesaspartof theircommitment toestablishandmaintainits‘operatinglicense.’Thus,thecommitmentbytheminingindustrytorespect,preserveandrestorethelandscapeandtoconservebiodiversityin the areaswhere theirmining operations are carriedout is intended to go beyond legal environmentalrequirements, i.e., socio-environmental responsibilityis perceived as strategic for the performance of theiractivitiesandnotasmerebudgetedcosts.

type of mineRal

BiodiveRSity

protected area (hectare)

Revegetation (ha/year)

Seedling nursery

(seedlings)

Iron ore 2,8 thousand 350 120 thousand

Gold 3.506 12 20 thousand

Coal 0,45 23,6

Kaolim 1,3 thousand 50 50 thousand

Industrial quartz sand, limestone and dolomite

377 10 3 thousand

Bauxite 377 254 400 thousand

Chrysotile mineral fiber

2,5 thousand 9 400 thousand

Iron ore pellets 2,2 thousand 61,78 20 thousand

Nickel 1.400 51 25 thousand

Phosphates 6 thousand 78,7 25 thousand

Gold 408,5 12,6 20 thousand

Iron Ore 1,1 thousand 7 thousand 5 million

Bauxite 1,4 thousand 122 400 thousand

Source:IntheMine,2011

Climate Change

Knowing the volume of GHG emissions is the firststep towards a low carbon economy. In line with thisparadigm, the mining sector developed the “InventoryofGHGEmissionsintheMiningSector”that,inadditionto reporting GHG emissions to 10 minerals mostrepresentative in terms of value, provided the basis fordevelopingthe“SectorPlanforMitigationandAdaptationto Climate Change in Mining”, in compliance with thespecificationsof theNationalPolicyonClimateChange(LawNº.12.187/2009).

Fonte:Ibram,2011

Astrictanalysisofmininginthisstudyrevealed8,855,655tCO2e.ConsideringthelatestofficialdataavailableforBrazil(2005),totalemissionsforCO2alone,were1,637,950,000tCO2. This warrants the conclusion that the contributionofminingisoflittlesignificance.Oftheseemissions,over90%ofthecorporateemissionscoveredinthestudyarisefromtheburningoffuelinstationaryandmobilesources.Thus,acontributionofminingcompaniestotheabatementofGHGemissions is related to theefficientuseof fossilfuels,aswellastheuseofrenewablefuels.

Water Use

For the mining industry, water is a strategic, scarceand economically valuable element. Therefore, there isgrowinginterestinthequantityandqualityofwater,whichisaviablealternativetoincreased,lowercostproduction,process efficiency, among others. Due to the massivevolumes involved, the use of recycling processes andwater recirculation is quite commonplace in theminingsector.Themostcommonsourcesarefromthereservoirsof tailings damsor those resulting from theprocess ofdewateringbyfiltration,screening,andthickening,etc.

type of mineRal Recycling/ReciRculation (%)

Iron 90

Coal 90

Kaolim 85

Bauxite 85

Nickel 74,3

Phosphate 50 - 83

Gold 90