Bahia state sees strong Q1 mining revenues

Mining revenues in the Brazilian state of Bahia increased 8% year-on-year in the first quarter, representing a better performance than the sector as a whole, which reported a drop in revenues in the same period.

Bahia saw its mining revenues reach 2.2bn reais (US$427mn) in Q1, according to the state-owned mineral research company CBPM.

The mining sector posted Q1 revenues of 56.2bn reais, down 20% y-o-y, according to Brazilian mining association Ibram. 

One of the reasons for Bahia’s positive performance was the diversification of mining production in the state. 

“The mining advance in Bahia is mainly due to the geological diversity of the state. In 2021, for example, Bahia led the production of 19 types of substances," said CBPM president Antonio Carlos Tramm in a press release.

The state, which is the country's third largest in terms of mining production behind Pará and Minas Gerais, mainly produces copper, gold, nickel and iron ore.

INVESTMENTS 

Of the US$40.4bn projected to be invested by mining companies in Brazil in the 2022-26 period, around US$6bn is expected go to Bahia. 

One of the main projects that have already been unveiled is the US$590mn investment plan by Largo Mineração, which is a subsidiary of Canadian Largo Resources. 

The main part of the investment – US$360mn – will finance the construction of a titanium dioxide pigment plant in the Camaçari petrochemical complex. 

Copper producer Ero Brasil, formerly Mineração Caraíba, has also said it will invest US$94.5mn in the municipalities of Jaguarari, Juazeiro and Curaça to expand capacity and improve operational performance.