Analysis of the Energy Efficiency of Diesel Oil Consumption in the Brazilian Iron Ore Mining Company

Abstract

This paper aims to evaluate the diesel oil consumption between 2008 and 2015 in the production of iron ore in Brazil, creating correlations between energy intensity (production), economy and checking the impact of fuel prices on the commodity. During the analyzed period, the years 2008-2009 indicated economic crises, which interfered in the price and the commercialization of iron ore products. The physical intensity was 0.2% higher than the economic intensity. In the period from 2010 to 2014, economic activity remained more stable, with a decreasing trend, mainly due to the increase of iron ore prices. The physical intensity is much higher than the economic intensity influenced by the expansion of the Chinese economy. The year of 2014 indicated the end of the high iron ore price cycle and the beginning of supply and demand stabilization with consequent reduction in prices. In 2015, the market entered the stabilization phase, with a continuous reduction in unit production costs and transportation logistics. There was an abrupt change due to the strong increase of the economic intensity due to the fall of the international prices of iron ore. The diesel oil consumption plays a vital role in the scenario of cost reduction in iron ore production and a deeper analysis must be done in order to discover some options to change the energy matrix.