Brazil: Minas Gerias & Slate

   The first step financed by the Brazilian Exports Promotion Agency – APEX BRASIL, was a media tour that included FEINAR, a local fair for slate that took place here in July, and a visit to the main quarries and production sites around the region. Geologist Cid Chiodi, one of the most-knowledgeable professionals in the sector, organized the program.
   Minas Gerais is a state of history and tradition; it had an abundant reserve of gold and diamonds, explored by the Portuguese during the 1700s. When the production of gold started to decline in 1750, Minas Gerais was kept isolated for a better control of the metal and precious-stone resources.
   The move inhibited the development of any other economy. For over 50 years the state was in the hands of land holders and the economy was basically of subsistence, predominantly agricultural.
   In the beginning of the 1800s, the coffee economy started to bloom and brought significant growth to the state. In the 1950s, Minas Gerais went back to its natural tendency of exploring its rich mineral resources, particularly for the steel industry.
   During the ‘60s, the decisive participation of the Brazilian government helped the state to make major steps towards industrialization, and it changed the face of Minas Gerais. Slate started being quarried in the beginning of the ‘70s for the internal market, with a continuing growth that intensified in the ‘90s for the international market.
   Today, exports of Brazilian slate are divided between Europe and North America. The roofing segment seems to be responsible for developing of the European market, while the United States mostly imports billiard tabletops, tiles, slabs and cut-to-size projects. This phenomenon is helping the Brazilian slate producers to continue rapid growth and technical innovation.
   Among the major slate companies in the province are:
  
Mineração Retiro
   On entering the factory, there’s a sign that states the number of days without accidents, as evidence of pride in their ISO 9001. This factory, founded in 1990, belongs to a group called Santa Catarina. M. Retiro is specialized in slate for billiard tabletops and has 95 percent of its production exported to the U.S. market.
   There is a sophisticated production line based on simple mechanical principles in combination with modern technology. Because of the seasonal nature of the billiard market, the company produces a large stockpile for the active market period of August-November.
  
TB Loch
   This factory, also owned by Santa Catarina, produces slabs and tiles in slate of all colors, and is developing a line of soapstone products. They work slate from their own quarries, and have achieved a significant success in the European market by developing a complete roofing line of all sizes and colors. The company also delivers cut-to-size projects worldwide.
   
Micapel
   The largest employer in the slate province with 800 employees, Micapel produces slabs, tiles, roofing and, more recently, mosaics. The factory is located at its quarry and has large reserves of slate. It exports one-third of production to the European market (especially in the roofing segment), and the remaining share goes to the United States. This site is situated far away from the city (approximately 30 miles by dirt roads), so the company has accommodations and infrastructure for its employees to stay at the site for the whole working week.
  
MAP – Mineração Alto das Pedras
   In business for more than 20 years, the company is a pioneer in developing an extensive line of high-quality products, including tiles, slabs, mosaics, roofing and cut-to-size projects. It was very refreshing to visit one of their sites that’s now reforested, and to see a lake full of fish formed in the pit of a deactivated quarry. The water system that maintains the lake is connected with the water filter utilized in the production line. MAP slate products can be found in countless works worldwide.
  
Pevex
   Founded in 1983 for the domestic market, the company is becoming export-oriented. It produces slabs, tiles and cut-to-size projects; more-recently, for the European market, it took on roofing. Its line of production is very modern, and the company pays special attention to production waste; the material is ground into a paving material that’s distributed free to the municipality or sold for a nominal price. The company also is selling quartzite for the external market with a factory in Pernambuco.
  
Altivo Pedras
   The company produces slabs, tiles, roofing and material for billiard tabletops, and has a sophisticated line of production with state-of-the-art equipment. It’s best known for its quarry of black slate, and just inaugurated a large new factory close to one of its quarries. Altivo Pedras is also offering quartzite. 
  
   The stone industry in Brazil – including slate – is suffering dramatically with the devaluation of the U.S. dollar against the Brazilian real. Since November of last year, the dollar fell from $2.80 to $2.30 per one real (as of this August), causing a decrease of 18 percent in the price of products previously calculated at the $2.80 conversion rate. A high level of competition in the United States with similar products from China and India is keeping the Brazilian industry on a very tight budget until the exchange rate is corrected.
  
This article first appeared in the November 2005 print edition of Stone Business. ©2005 Western Business Media Inc.