Marcos A

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					                                                                          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                                  Reserves (tons)                         Production (tons)
                                                                (p)                                               (p)
                 Countries                               2001                (%)        2000               2001                 (%)
 Brazil                                                           1,600           0.0             51                       56      2.2
 South Africa                                                    36,000          42.8            431                      400     15.5
 United States                                                    6,000           7.1            353                      350     13.6
 Australia                                                        6,000           7.1            296                      290     11.2
 Canada                                                           3,500           4.2            154                      160      6.2
 Indonesia                                                        2,800           3.3            125                      120      4.7
 China                                                            4,300           5.1            180                      185      7.2
 Russia                                                           3,500           4.2            126                      155      6.0
 Peru                                                               650           0.8            133                      140      5.4
 Uzbekistan                                                       5,300           6.3              -                        -        -
 Other Countries                                                 16,000          19.0            735                      725     28.1
 TOTAL                                                           84,050         100.0          2,584                    2,581    100.0
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
                                                                                                                   (r)                     (r)                      (p)
                                          Specifications                                                   1999                    2000                     2001
                                           Mines (companies)                       (kg)                        42,367                   42,025                    46,001
                                                                                (US$ 1.000)                  348,181                  376,773                   400,661
                                                                         (1)
 Production, Primary                       Garimpos, Official                      (kg)                         9,055                   10,395                     5,866
                                                                                (US$ 1.000)                    81,176                   93,197                    51,092
                                                                   (e)
                                           Garimpos, Real                          (kg)                        10,267                    8,368                     7,206
                                                                                (US$ 1.000)                    96,929                 111,040                     52,076
                                    (e)
 Production, Secondary                                                             (kg)                         9,530                    9,453                    10,347
                                                                                (US$ 1.000)                    78,322                   84,753                    90,126
                                           Gold and jewelry                        (kg)                           645                      719                       445
             (2)
 Imports                                                                        (US$ 1.000)                        74                      283                      76.0
                                           Chemical Compounds                      (kg)                         4,949                    4,185                     2,795
                                                                                (US$ 1.000)                       297                      237                       144
                                                          (e)(3)
                                           Gold, bars                              (kg)                       -                       -                         -
                                                                                (US$ 1.000)                   -                       -                         -
             (2)
 Exports                                   Gold, jewelry                           (kg)                        39,028                   40,748                    44,034
                                                                                (US$ 1.000)                  347,726                  116,487                   182,049
                                           Chemical Compounds                      (kg)                            69                    1,651                       952
                                                                                (US$ 1.000)                       181                   10,044                     5,805
                                           Official Data                           (kg)                        26,632                   22,278                 20,468.4
                          (e)
  Apparent Cons.                                                                (US$ 1.000)                  160,325                  466,600                   354,246
                                           Estimated Data                          (kg)                        28,661                   22,278                 21,808.2
                                                                                (US$ 1.000)                  175,897                  456,556                 355,229.3
                                           Foreign Market                       (US$/oz.tr.)                   278.85                   279.85                    295.00
                                                           (4)
 Average Prices                            Domestic Market                        (R$/g)                        16.26                    16.41                     19.05
                                                                                (US$/oz.tr.)                   254.03                   258.11                    270.90
Sources: DNPM-DIRIN, BACEN, SECEX-DTIC, OURINVEST, and GFMS.
Notes: (r) Revised; (p) Preliminary; (e) Estimated; (...) Not available; (1) Production with IOF collection; (2) In US$-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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