1. Expo 2010 Shanghai China 05/July/ 2010 Paulo Camillo Vargas Penna Investment Opportunities in Brazil IBRAM – The Brazilian Mining Association

2. Non-profit private organization that represents the Brazilian Mineral Industry; Founded in 1976; Congregates 182 companies [mining and non-mining]; Represents more than 85% of the Brazilian Mineral Production (US$ 24 billion in 2009 – excluding oil and natural gas ).  IBRAM has two regional offices in the States of Minas Gerais and Pará. The Headquarters is located in Brasilia - Capital of Brazil. IBRAM- Brazilian Mining Association

3. INVESTMENT OPPORTUNITIES IN BRAZIL  Opportunities in Mining Sector  Opportunities in Mining Infrastructure  Opportunities in Mineral Exploration  New challenges in Mining in Brazil

4. Opportunities in mining sector

5. China Drivers of demand Urbanization of the World Population Economic Perspectives World Rural Urban Rural

6. 20502009 $80 $70 $60 $50 $40 $30 $20 $10 $0 ChinaUSAIndiaBrazilRusUSAJapan Ger ChinaUK US$ trillion Fonte: Goldman Sachs, september 2008 The 5 largest Economies Current comparison and a project for the year 2050

7. Brazil in a Global Context GDP > US$ 1 trillion Area > 5 million Km² Pop > 150 million Russia USA BRAZIL China Canada Australia Germany Spain Italy South Korea France United Kingdom Mexico India Japan Indonesia Pakistan Nigeria Bangladesh

8. BRAZIL-Social and Economic Overview LONG-TERM TRENDS – 5-YEAR AVERAGES 2000-04 2005-09 2010-14 Population (million):174.6 185.4 200.6 GDP (USD bn): 566.8 1,346 2,222 GDP per capita (USD) 3,244 7,240 11,062 GDP growth (%) 3.0 3.6 4.8 Inflation (%) 8.7 5.1 4.6 External Debt (%of GDP) 38.9 14.7 11.9 Land Area (km²) – 8,511,965 Opportunities in mining sector

9. Not included oil and gas Evolution of The Brazilian Mineral Production in US$ Billion Estimates are for the Brazilian Mineral Production to reach US$ 35 Bilion in 2010 Variation 2000/2008 250% 2008 = US$ 28 Billion2009 = US$ 24 Billion Forecast 2010 US$ 35 billion Year 100908060402009896949290868482807888 35 25 20 15 10 5 0

10. Main Brazilian Mineral Provinces Bacia do Reconcavo -Tucano Rondônia Bacia do Paraná Maciço de Goiás Borborema Vila Nova Centro-Sul Baiano Rio do Peixe Escudo Sul Rio Grandense Bacia do Bambuí e Espinhaço Meridional Opportunities in mining sector

11. Brazilian Status on the Mineral Global Market Exporter Global Player Exporter Self Sufficiency Importer/ Producer Importer Nickel Magnesium Kaolin Tin Vermiculite Chrome Mica Niobium (1st) Iron Ore (1st) Bauxite (2nd) Manganese (2nd) Graphite (3rd) Crysothile (4°) Tantalum (2nd) Dimension Stone (4°) Limestone (cement) Industrial Diamond Titanium Gold Tungsten Talc Zinc Phosphate Zirconite Diatomite Copper Metallurgic Coal Sulfur Potash Rare Earth Elements Opportunity? Opportunities in mining sector

12. Major mineral products imported in 2009 and 2008 Opportunities in mining sector

13. Crisis Investments in Mining Sector 2010 a 2014 Evolution of investments estimates in the mineral sector in US$ billion

14. Investment in Mining Sector 2010 to 2014 36.530 31.565 6.716 3.546 1.000 1.500 987 2.519 2.200 2.510 2.057 2.357 2.739 1.401 979 300 44 270 Iron Ore NickelAluminaBauxite Aluminium Phosphate CopperGold Manganese Coal Vanadium Opportunities in mining sector New investments in the Mining Sector from 2010 to 2014 – US$ 54 billion Investments in Mining Sector from 2009 to 2013 – US$ 47 billion

15. Opportunity in infrastructure

16. Brazil is one of the countries with the highest mineral potential in the world. Opportunities in infrastructure Abundant geological potential to be explored in an 8,514,876.599 km2 continental extension Infrastructure undergoing an expansion process Skilled labor creates an environment conducive to the growth of mining and metallurgy in the country. A country with ample tradition in mining An enormous territory with the potential for great mineral reserves

17. Source: Brazilian Association of infraestructure -Abdib Transportation and Logistics US$ 13,5 BRAZIL It is necessary to invest US$ 90 billion per year in infrastructure ENERGY US$ 16 Sanitation US$ 7,5 Telecommunications US$ 11 Oil and Gas US$ 42,5 Opportunity in infrastructure Annual investments necessary in infrastructure in BRAZIL

18. Indicative areas for port installation and expansion Opportunity in infrastructure Ports New areas for port facilities Natural vocation for port activities Hydrography South America Brazil

20. Milions of Tons Transported 472 22 Mississippi USA Brazil Araguaia-Tocantins Paraguai Paraná Atlântico Sul São Francisco Parnaiba Amazônica Atlântico Sudeste Opportunity in infrastructure Brazil’s Main Hydrographic Basins

21. Opportunities in Mineral Exploration

22. Canada (US$ 1,2 billion) 16% Australia (US$ 1 billion) 13% BRAZIL (US$ 234 million) 3% Opportunities in mineral exploration Mineral Exploration Investments by the 10 Leading Countries 2009 Source: Metals Economics Group

23. Opportunities in Mineral Exploration 2004 – 2008 Program: mapping 30% of the Brazilian Territory focused on mineral potential areas. LEGEND Sedimentary areas Basement areas PREVIOUS MAPPING PROGRAM Maps 1:100.000 Maps 1:250.000 Program 2004-2008 Maps 1:100.000 (283) Maps 1:250.000 (94)

24. NEW CHALLENGES IN MINING

25. Mining Process Indigenous Areas Indigenous Areas: 13% of National Territory 25% of the Amazon Region New Challenges Mining in Indian Lands

26. New Challenges Brazilian Continental Platform Aggregates Gold Diamond Coal Phosphate Cobalt Others Territory emerged 8.500.000 Exclusive economic zone 3.500.000 Extension of the continental platform referred to the UN Total area of continental and marine 1.000.000 13.000.000

27. New Challenges Modification of Monopoly - exploration and mining of Nuclear Ores Inasmuch as Brazil has only 30% of the territory prospected for Uranium, the country ranks as the 7th richest nation in the world in this mineral. Currently Brazil has a reserve of 310 thousand tons, but there are estimates that it has more than 800 thousand tons, which will bring the country to rank the second or third largest reserves in the world.

28. Investment opportunities in the BRAZIL Conclusion BRAZIL TODAY Macroeconomic stability Sustainable growth Need to expand and improve its infrastructure Needs to increase the area of geological and geophysical mapping Great opportunities for investments in mining companies

29. Thank You http://www.ibram.org.br Paulo Camillo Vargas Penna President