Category: Industry

Information about Brazil’s economic sectors

Vale boosts Brazil dam closure provisions by $671 mln

Brazilian iron ore miner Vale SA said will boost provisions to decharacterize upstream tailings dams by $671 million after conducting engineering studies following a disaster at its Brumadinho mining site last year. The charge, to be taken against Q4 earnings, includes a series of revisions including reclassifying two dams previously categorised as having been built by the “center-line” method to the upstream structure considered to be more unstable, the company said in a regulatory filing.

Brazil MVNO market grows to 1.2 mn lines, 80% are M2M

The number of lines at MVNOs in Brazil grew 128 percent per year, on average, in the last three years, reaching 1.2 million in 2019. M2M terminals accounted for 80 percent of the total. According to data published by Teleco, Brazil has 24 MVNOs, of which eight are authorized. Of note, Arquia (Datora), Safra and Surf Telecom are the largest, and also operating are America Net and Vecto. 

Petrobras oil production in Brazil grows 16.5% in Q4

Brazil’s Petrobras hit a new production record in Q4 of ca. 2.4 million barrels of oil equivalent per day (boepd), which means an increase of 16.5% on average production of oil and liquefied natural gas (LNG) compared to the same period in 2018. Compared to the third quarter, there was a 5.7% increase. The improvement in performance was largely due to the ramp-up of platforms in the prolific pre-salt formation, says the company’s report.

Petrobras cuts gasoline price by 4.3% and diesel by 4.4%

Petrobras applied a price reduction on petroleum products in its refineries as of Thursday 6. The litre of gasoline will cost 4.3% less, diesel, 4.4%, S10 diesel for thermal power plants 4,6%, and marine diesel, 4.5%. Petrobras has not increased gasoline since December 1 and diesel since December 21. The accumulated fall in the year is R $ 0.02156 for gasoline and R $ 0.03236 for diesel.

Volvo to invest $ 237mn in Brazil

Swedish truck and bus manufacturer Volvo announced an investment of R$ 1 billion ($237 million) in Brazil in the period between 2020 and 2023 for research and development of products and services, including construction of equipment and marine engines. Brazil was the second market of the group in the world in 2019 when heavy truck sales grew 58%, light heavy 55.5%, buses 73% and exports, mainly to Colombia and Chile, went up 77%.

14,750 Petrobras workers are on strike, but production is still not affected

A strike by workers at Brazil’s Petrobras started on Saturday, has not yet affected “production or supply to the market” and “all of its oil, fuel and derivatives production units are operating within safety standards,” the state-owned oil company said. Around 14,750 workers are on strike, or 80% of the total in the 12 states where the industrial action is taking place, according to Federação Única dos Petroleiros (FUP).

Government speeds up approvals for mining exploration to up to 120 days

Brazilian mining lobby group Ibram praised a government decision to speed up approvals for mining exploration. Under new rules, the National Mining Agency (ANM) will have to rule on exploration requests within 120 days, and if the deadline passes, the request will be automatically approved. This will “create a more favourable environment” for raising funds for mining in Brazil, Ibram’s Chief Executive Flavio Penido said.

Industrial production fell 1.1% in 2019

After two years of expansion, Brazilian industrial production fell 1.1% in 2019, compared to the previous year, according to data from the Brazilian Institute of Geography and Statistics (IBGE). The extractive industry was the one with the greatest negative influence on the results for 2019, decreasing 9.7%, pressured by the lower production of iron ore after the Brumadinho tragedy.

Meatpackers build up expectations on Chinese market

“ASF, coronavirus and a new outbreak of bird flu influence consumer habits and may drive Chinese demand for Brazilian meat,” said Francisco Turra, president of Brazil’s meat industry association ABPA. The new threat reported on Saturday comes as China has been trying to increase local poultry output to substitute for pork. Last year, Chinese imports of Brazilian chicken rose 34% while its imports of Brazilian pork jumped 61%.

Brazil and US sign nuclear energy cooperation agreements

The Brazilian Association for the Development of Nuclear Activities (ABDAN) and the Nuclear Energy Institute of the United States (NEI) signed a memorandum of understanding during the Brazil-USA Energy Forum in Rio do Janeiro. In the presence of Brazil’s Energy Minister, Bento Albuquerque, and US Energy Secretary Dan Brouillette, a letter of intent was also signed between Eletronuclear and the US company Westinghouse to extend the life of the Angra I nuclear power plant.