Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr
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BRAZILIAN GROWTH Preparing for Brazilian Growth Long before the BRIC acronym became popular, Liebherr was helping Brazil build By Steve Fiscor, Editor-in-Chief Estadio Mineirao in Belo Horizonte is one of 12 stadium construction projects Brazil is conducting to host the 2014 FIFA World Cup. Because of the emergence of Vale as a leader, many in the mining industry already understand the importance of Brazil to the world economy. The same generalization could be made for the agriculture and petroleum industries as well. Then, of course, there is football and fans know that Brazil is the only country to hold three World Cup Championships. So, the decision to host the 2014 FIFA World Cup in Brazil seemed logical. Preparing for that event should serve as a great transition for the 2016 Olympics, right? The growth that Brazil is about to experience, both domestically and abroad, will be staggering. The Brazilian government's Growth Acceleration Program is expected to invest $486 billion for infrastructure improvements during the next four years. These activities will be complemented by on-going private investment from major Brazilian companies. Those that deal with the traffic congestion in Sao Paulo and Belo Horizonte know that logistics will have to improve to support these special events in addition to the normal growth rates. During November, Liebherr invited a group of journalists from several international trade journals to see first-hand how it was preparing to support its customers in the aerospace, shipping, construction and mining fields. Engineering & Mining Journal was representing the international mining industry. During a week-long trip, the group toured different facilities, saw how Liebherr was investing in its factories and its people, and heard stories about the past and predictions for the future from executives and dignitaries. 80 E&MJ; • JANUARY 2013 During the last 50 years, Brazil has advanced from a dictatorship to a consolidated democracy. It's now not only a great place to do business, but one of the world centers for capital investment. Brazilians number nearly 200 million and it's a race, religion, education and age diversified population. They have an optimistic approach to life. In the next four years, a whole new generation will be exposed to a vibrant culture that deserves respect. Historical Perspective Brazil is the seventh largest economy. In 2011, the Brazilian GDP was $2.37 trillion, which placed it above the U.K.'s $2.26 trillion. The IMF has predicted that the Brazilian economy could surpass the French economy in 2015. A weaker global economy caused the Real to lose value (R:$, 1.71:2.03) in 2012, which will probably push the country back to the seventh position, behind U.K., France, Germany, Japan, China and the U.S. Iron ore, energy and agriculture played a crucial role in propelling Brazil to its current status. During the late 1960s and early 1970s, an economic modernization and growth cycle began in Brazil. At that time large state-owned companies were created or consolidated and a military dictatorship ruled the country. Plenty of financial resources were available and the Brazilian Miracle is well documented. In the 1980s, democracy was re-introduced, but times were difficult. A downturn in the economy did not help the situation. www.e-mj.com