GOLD
Miguel Antonio Cedraz Nery, D.Sc. - DNPM/BA - Phone: (71) 371-4010 - E-mail: miguelnery@ig.com.br Emanoel Apolinário da Silva - DNPM/BA - Phone: (71) 371-4010 - E-mail: apolinario@ig.com.br
I - WORLD SUPPLY - 2001 World reserves of gold (measured + indicated), according to the USGS, were estimated at 78 thousand tons, which is 62.2% higher than in 2000. Brazil’s reserves are estimated as 1,600 tons. A total of 2.2 thousand tons of metallic gold is estimated, if the average contents of measured and indicated reserves are also assumed for inferred calculations. There are occurrences of gold in thirteen States, but five alone contain 93.0% of the total reserve. Total reserves (measured+indicated+inferred) are distributed as follows Pará (40.0%), Minas Gerais (33.4%), Goiás (9.0%), Bahia (6.1%), Mato Grosso (4.3%), and other (7.2%). World production of primary gold in 2001 was 2,530 tons (USGS), 0.8% less than 2000. Brazil primary gold th production was 56 tons (DNPM), slightly lower than 2000. Brazil’s production was 9 in world ranking.
World Reserves and Production Specifications Countries Brazil South Africa United States Australia Canada Indonesia China Russia Peru Uzbekistan Other Countries TOTAL
Reserves (tons) 2001
(p)
Production (tons) (%) 0.0 42.8 7.1 7.1 4.2 3.3 5.1 4.2 0.8 6.3 19.0 100.0 2000 51 431 353 296 154 125 180 126 133 735 2,584 2001
(p)
(%) 56 400 350 290 160 120 185 155 140 725 2,581 2.2 15.5 13.6 11.2 6.2 4.7 7.2 6.0 5.4 28.1 100.0
1,600 36,000 6,000 6,000 3,500 2,800 4,300 3,500 650 5,300 16,000 84,050
Sources: DNPM-DIRIN, USGS Bureau of Mines and GFMS Notes: (p) Preliminary (...) Not Available, included in "other".
II - DOMESTIC PRODUCTION Preliminary data on domestic production of gold was 56 tons, 5 tons (9.8%) higher than in 2000. The trend of price stabilization in the world market accounted for sustaining production level of the companies, which amounted to 46 tons (garimpos excluded), a slight positive variation of 4 tons, i.e. 9.5% higher than in 2000. The low price in the foreign market plus depletion of the rich ground deposits in digging areas (garimpos) caused a fall in domestic production. The persistence of low prices, kept many of the areas shutdown in previous years out of operation, and forced selective mining of higher content ores, and a slowing down of operations, in the majority of companies. Garimpos produced 5.9 tons, a 43.3% lower than in 2000 (10.4 tons).
III - IMPORTS In 2001, imported products containing gold, including objects, jewelry and chemical compounds, totaled US$ 220,1 thousand, 57.7% lower than in 2000 (US$ 520 thousand). Chemical compounds, gold-sulfides included totaled 86.3% of imports. Main sources of these goods were Japan (61.0%) and the United States (33 .0%).
IV - EXPORTS Gold exports, excluding international exchange arbitration of gold as financial asset, totaled US$ 183 million, 44.0% superior to the US$ 116 million mark of 2000. The increase in export value was basically due to a slight raise in quotation in foreign markets, which presented a slight variation from US$ 279.85/oz.tr. in 2000, to US$ 295/oz.tr., in 2001. In volume, exports amounted to 44,034 kg against 42,399 kg in 2000. Gold semi-manufactured was mainly exported to the United States (94.0%) and United Kingdom (4.0%). Manufactured went mainly to Japan (98.0%). Chemical compounds including gold sulfides and other compounds went to the United States (97.0%) and to Germany (2.0%).
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GOLD
V- DOMESTIC CONSUMPTION Most of the gold produced in Brazil is exported as commodity, since the Kandir Law (1996) exempted exports of primary goods and semi-manufactured products from export levies, unwrought and semi-manufactured gold have been exported as commodity, without further aggregate value. On the other hand, the classification of gold as commodity, making it liable to high ICMS rates in the domestic market, has created difficulties for the expansion of the jewelry sector despite low gold prices that otherwise would have favored demand. It is estimated that the jewelry industry consumed 35 tons of primary and recycled gold in 2001, a 60.0% increase compared to 2000.
Salient Statistics - Brazil Specifications Mines (companies) Production, Primary Garimpos, Official Garimpos, Real Production, Secondary
(e) (e) (1)
Gold and jewelry Imports
(2)
Chemical Compounds Gold, bars Exports
(2) (e)(3)
Gold, jewelry Chemical Compounds Official Data
Apparent Cons.
(e)
Estimated Data Foreign Market (4) Domestic Market
Average Prices
(kg) (US$ 1.000) (kg) (US$ 1.000) (kg) (US$ 1.000) (kg) (US$ 1.000) (kg) (US$ 1.000) (kg) (US$ 1.000) (kg) (US$ 1.000) (kg) (US$ 1.000) (kg) (US$ 1.000) (kg) (US$ 1.000) (kg) (US$ 1.000) (US$/oz.tr.) (R$/g) (US$/oz.tr.)
1999 42,367 348,181 9,055 81,176 10,267 96,929 9,530 78,322 645 74 4,949 297 39,028 347,726 69 181 26,632 160,325 28,661 175,897 278.85 16.26 254.03
(r)
2000 42,025 376,773 10,395 93,197 8,368 111,040 9,453 84,753 719 283 4,185 237 40,748 116,487 1,651 10,044 22,278 466,600 22,278 456,556 279.85 16.41 258.11
(r)
2001
(p)
46,001 400,661 5,866 51,092 7,206 52,076 10,347 90,126 445 76.0 2,795 144 44,034 182,049 952 5,805 20,468.4 354,246 21,808.2 355,229.3 295.00 19.05 270.90
Sources: DNPM-DIRIN, BACEN, SECEX-DTIC, OURINVEST, and GFMS. Notes: (r) Revised; (p) Preliminary; (e) Estimated; (...) Not available; (1) Production with IOF collection; (2) In US$-FOB; (3) international Arbitration; (4) Prices in US$/oz.tr. Converted by commercial exchange, except for foreign market, other values are estimated by external price.
VI - ONGOING AND/OR PLANNED PROJECTS Jacobina Mineração, Bahia State, shut down in 1999 due to the low quotation of gold is considering the retake of activities once the price has reached US$ 327.5/oz. tr. In 2001, CVRD shut down Almas Mine in Tocantins that produced 2.7 tons of gold in five years. Gold Fields acquired two gold mines in Australia at the total value of US$ million.
VII - OTHER SIGNIFICANT FACTORS The steady growth trend in gold quotation suggests a value of US$ 350 /oz.tr. by the end of 2000 and over US$ 440/ounce after mid-2003, and it is expected that the tendency should hold at high levels. The favorable panorama has led Anglo Gold to a decision of investing US$ 260 million in some countries, from this some US$ 70 million should be directed to Brazil and Argentina. One of the possible targets is the retake of operations in Cuiabá Mine. Peru plans to attract some US$ 11 billion investments in the mining sector up to 2008, including gold exploration and mining.
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