Cia. Brasileira de Metalurgia e Mineração – CBMM, the world leader in production accounts for 78.3% of the Brazilian output of niobium concentrate and Anglo American of South America Ltda. (formerly Mineração Catalão de Goiás Ltda.) supplies the remainder.

World Reserve and Production

Specifications	RESERVES (2) (103tons)		PRODUCTION (1) (tons)
Countries	2001 (p)	(%)	2001 (p)	(%)
Brazil	5,200	91.1	41,772	94.3
Canada	400	7.0	2,300	5.2
Nigeria	90	1.6	30	0.1
Australia	6	0.3	200	0.5
TOTAL	5,706	100.0	44,302	100.0

Sources: DNPM-DIRIN, Mineral Commodity Summaries - 2001.
(1) In Nb₂0₅ - contained                    (p) Preliminary     (-) Not available
(2) Measured + Indicated Reserve      (r) Revised

II - DOMESTIC PRODUCTION
Anglo-American of South America Ltda. of the Anglo American Group plc, has a nominal installed capacity of 670 thousand tons/year. It produced 9,275 tons of Nb₂O₅ contained in ore, and 5,153 tons Nb₂O₅ contained in concentrate and 3,397 tons of Nb-contained in FeNb alloy, which represents an increase of 23.9% compared to the previous year due to a growth in demand and a higher Nb₂O₅ content in the processed ore.

Companhia Brasileira de Metalurgia e Mineração - CBMM (Grupo Moreira Sales and Molycorp), has an installed capacity of 50,400 tons/year of Nb₂O₅ contained in the concentrate. It produced in the Araxá plant (MG), 540,077 tons of Nb₂O₅ contained in processed ore, 33,886 tons of Nb₂O₅ contained in concentrate, 21,467 tons of Nb-contained in FeNb alloys and 2,632 tons of Nb₂O₅. CBMM's production achieved a significant growth compared to 2000, especially in Nb₂O₅ (106.6%). The increases in production resulted from sales improvement, good performance of the automobile and aeronautics industries, markedly in Europe, and demand requirements for lighter and more resistant materials.

III - IMPORTS
There have been no imports of FeNb alloys since 1985. Brazil is self-sufficient and world leader in niobium production.

IV - EXPORTS
Foreign consumers of ferroniobium were the European Union (41.0%), Asia (25.0%), USA (24.0%), and others (10.0%).

Anglo American exported 97.88% of its production of 3,325 tons of Nb-contained in FeNb alloy to Germany (35.8%), USA (20.9%), Japan (19.9%), England (7.2%), Canada (6.7%) and the 9.5% remainder to Korea, Taiwan, Saudi Arabia, Mexico, totaling an income of US$ 44,582,601.55, a 17.8% increase compared to the year before, due to an increase in sales volume. The main applications of FeNb in the market are in the manufacture of alloys and special steels.

V - DOMESTIC CONSUMPTION
Anglo American directs the whole of its production to the foreign market.

CBMM directed 998 tons of its production of Nb-contained in FeNb alloys to the domestic market, which is an increase of 26.33%.

The major consumer is Minas Gerais (62.3%), Regions South and Southeast  (28.5%) and Northeast (9.2%).

Salient Statisctics - Brazil

Specifications			1999 (r)	2000 (r)	2001 (p)
	Concentrate(1)	(tons)	31,352	31,190	37,283
Production	Fe-Nb Alloy (2)	(tons)	18,866	18,218	24,864
	Nb Oxide	(tons)	1,375	1,274	2,632
	Alloy Fe-Nb(2)	(tons)	16,821	17,407	18,339
Exports		(103 US$-FOB)	223,945	232,084	242,024
	Nb Oxide(5)	(tons)	1,064	639	903
		(103 US$-FOB)	18,170	11,080	13,986
Apparent Consumption	Alloy Fe-Nb(2)	(tons)	2,045	811	6,525
	Columbium Oxide	(tons)	311	635	1,729
Average Price*	Fe-Nb Alloy (2)	(US$/ton-FOB)	13,313	13,333	13,197
	Nb Oxide	(US$/ton-FOB)	17,077	17,340	15,488

SOURCES:  DNPM-DIRIN; MDIC-SECEX, CBMM
NOTES: (1) Data in Nb₂O₅ contained in concentrate;  (2) Data in Nb contained in Nb-alloy;    (r) Revised.
           (*) Average Price Base for Export

VI - ONGOING AND/OR PLANNED PROJECTS
Anglo American foresees promising levels of growth for the Nb market in 2002, increase in foreign demand, reduction in labor, continuation of technological and geological researches in environmental projects, same production capacity, no changes in infrastructure, in processing circuit or product stocking.

Many years ago CBMM established a program for research and development of new usages and applications for niobium together with research entities, universities and final consumers. The company invests significant resources in such programs and reassesses them in a yearly base. The programs should continue this year for they have proved very effective in expanding market opportunities.

VII - OTHER SIGNIFICANT FACTORS
Mineração Catalão Ltda. changed its social corporate name on 25/10/2001 to Anglo American of South America Ltda.

CBMM has a reserve of 449.2 million tons with contents of 2.5% Nb₂O₅ which is sufficient for supplying the domestic and the foreign market. The company increased production at levels higher than real demand in Brazil and abroad, as a market strategy which intends to create 'just in time' deliveries, from several storage points spread conveniently all over the world.