According to head of Brazil government"s mining department DNPM, Brazilian iron ore output could fall 30% and investment in the country"s mining sector could plunge even more in 2009.
Mr Miguel Nery director general said that interest in prospecting for mineral resources and opening new mines had flagged amid the global economic downturn but investments were continuing on established projects or those close to becoming operational.
He said that production of gold, grown popular as an investor safe haven amid volatility on global markets, would rise by around 10% this year.