(MENAFN- Brazil-Arab News Agency (ANBA))
São Paulo – mining products offer Brazil a chance to boost its presence in Arab countries, diversifying trade beyond agribusiness. This information is part of a study by the market Intelligence Department of the Arab-Brazilian Chamber of Commerce (ABCC ) that indicates the potential for partnerships between Brazil and Arab countries in this sector.
ABCC Market Intelligence Manager Marcus Vinícius points out the Brazilian miner Vale, which operates in Oman, and suggests that this business model be utilized more, with Brazilian companies establishing there, exporting their products from Brazil and processing them locally to supply the markets of the countries themselves and nearby nations.
“Some countries can be logistical hubs for the re-export of minerals to other Arab nations, as well as to those in nearby Asian, European, and African continents, thus optimizing and reducing logistics costs,” says Vinícius, noting that there is currently an increase in transportation costs and that the maritime transit time averages 40 days from Brazil to the Arab nations.
The study highlights the business opportunities in the industry, as Brazil has the potential to supply critical minerals such as lithium, graphite, and rare earth elements, all of which are crucial for the energy transition. The country is also the second-largest producer of iron ore in the world, the largest producer of niobium, the third-largest of bauxite, the seventh of manganese, the fourteenth of gold, the fifteenth of nickel, and the fifth of phosphate, according to the data.
Brazi-Arab mineral trade
Last year, the Brazilian mining industry grossed USD 49.64 billion in revenue. Some USD 64.5 billion are expected to be invested by industry companies in the Latin American giant by 2028, driven by socio-environmental, logistics, and critical minerals projects. The study notes that the mining production chain has a significant impact on Brazil's gross domestic product, highlighting iron and steel production in particular.
On the other hand, Arab countries imported USD 8.36 billion worth of ores, slags, and ashes in 2022, with Bahrain, Oman, Egypt, the United Arab Emirates, and Egypt being the main buyers of these products in the region. Brazil is one of the major suppliers to the Arabs in this industry, along with countries such as Canada, Sweden, Chile, Guinea, India, and Australia.
Read more:
Saudi Arabia wants Brazil in its mining industry
Translated by Guilherme Miranda
©Mauro Pimentel/AFP
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