Brazil’s mineral output could fall by 45pc over the next three quarters, due to the effects of the COVID-19 pandemic, according to the Brazilian Mining Association (Ibram).
The association reported that development of mining projects will be deferred during this period with gross domestic product (GDP) of the country likely to decrease by 8-25pc during the year. However, output levels will likely improve in the last quarter of this year with a gradual recovery in 2021.
Brazil’s total mineral output dropped by 17.67pc to 220.4mn mt in Q1 2020 compared to the same period last year, due to heavy rains that hit the country earlier this year, declines in world growth rates and uncertainties in the financial markets, Ibram noted, adding Brazilian mining companies reached an output value of BRL$36bn ($6.8bn).
According to Ibram data, mineral exports fell by 17.7pc to 147mn mt in the first quarter of this year, compared to the same period in 2019. Iron ore exports also decreased by 17.6pc to 70.2mn mt in Q1 2020 compared the same period last year, while exports of copper fell by 24pc to 230,026mt and aluminum shipments dropped by 41pc to 938,910mt during the period.