Brazil niobium producer launching US$1.9bn investment cycle

Brazilian niobium producer CBMM is embarking this year on a cycle of investments that will likely total 9bn reais (US$1.87bn) through 2030. 

"These investments are part of the company's 2030 plan, which is expected to double the firm's sales volume over the next eight years," a company spokesperson told BNamericas. 

"The proceeds will be used for a new expansion cycle, which began in 2022, but it’s worth emphasizing that new investments are conditioned to the growth of the market and the evolution of CBMM's strategic plan."

CBMM, an integrated producer whose operations range from mining to finished products, aims to expand sales from 85,000t of niobium products in 2021 to 185,000t in 2030. 

The company is also looking to diversify its revenues, with 40% coming from products outside the steel sector by 2030. In addition to batteries, which are expected to represent 25% of revenue, products such as nano-electronic components and electronic car systems are targeted to account for a significant portion of revenues.

The company will finance its investments with its own cash and overseas financing, added the spokesperson. 

In 2021, CBMM concluded the expansion of its Araxá unit in Minas Gerais state (in photo), increasing capacity from 100,000t to 150,000t of niobium products, more than current global demand. 

The company's total production last year was 99,710t, of which 91,920t were ferroniobium and 7,790t special products. 

CBMM is the world’s largest supplier of niobium products.