CBMM is a Brazilian company
70% of CBMM’s capital is Brazilian and 100% of the company’s production and manufacturing is based in Brazil (Araxá, Minas Gerais). Almost 98% of CBMM’s nearly 1,700-strong workforce is located in Brazil, which is also home to the company’s Technology Center that employees over 80 researchers and technicians who work to perfect industrial processes.
Niobium is found around the world
The assertion that Brazil hosts 98% of all niobium deposits is not correct. Niobium has been identified in deposits in Russia, Canada, Greenland, Angola, Gabon, Kenya, the United States, China, Saudi Arabia, Australia, Tanzania, Democratic Republic of the Congo, Finland, Malawi, Norway, South Africa, Zambia, Namibia, India, Spain and others.
CBMM does not sell ore
rather, the company markets only value-added manufactured products. Over 15 processing and production steps are required to make final niobium products. CBMM supplies approximately 80% of the world’s industrialized niobium products. Nearly 60 tonnes of ore are necessary to produce one tonne of ferroniobium, a key product of the company. Niobium products are used primarily to make special steels and the customers who buy niobium products are largely steelmakers.
CBMM has commercial subsidiaries
in Singapore, the United States and the Netherlands. These subsidiaries are important to ensure the efficient and secure distribution of CBMM products.
A stable, reliable supply
is what CBMM offers to customers around the globe. The company’s production capacity is scaled to guarantee a reliable, consistent supply to the market. CBMM maintains two months of inventory at key distribution centers to ensure delivery to most customer locations within 48 hours of the time CBMM accepts the order, even when there is an unplanned surge in demand.
The price of niobium products is not determined by stock exchanges
CBMM has competitors and the price of niobium products is dictated by the market. The cost of niobium products is based on the value that the product adds to the chain as a whole (e.g., the price of ferroniobium is based on the value it adds to steel).
Partnership with the state of Minas Gerais
Mining rights for the niobium deposit in Araxá were conceded to both Codemig, a state-owned company, and CBMM, and they both have leased their mining rights to Comipa, a privately held, profit-sharing corporation constituted for the sole purpose of mining the ore deposit. Comipa sells the ore exclusively to CBMM, which is responsible for processing, industrializing and commercializing final niobium products. Through the profit-sharing corporation, Codemig receives 25% of the net profits of the operation (including from the sale of products resulting from CBMM’s mining rights). Through Codemig, the state of Minas Gerais shares in the profits from subsidiaries, which are consolidated in CBMM Brazil. Codemig performs quarterly audits of the profit-sharing partnership with CBMM. The partnership has existed in its current form since 1972.