Brazilian metal products manufacturer Paranapanema (Bovespa: PMAM3) is drawing up an inventory of its reserves in a bid to attract partners to explore for copper, tin, gold and silver, local news service Rio Negcios reported.

Paranapanema holds 140 mining rights to explore for these and “several other metals,” CEO Luiz Antonio Ferraz said.

The company is compiling a detailed survey of reserves located in Bahia, Par, Pernambuco and Rio Grande do Sul states, according to the executive.

The study, which aims to be completed later this year, will be used to negotiate joint exploration with small and medium-sized companies.

Copper is the third most imported mineral in Brazil, after coal which is used by steelmakers and potash for fertilizers. The red metal accounted for 12.3% of the US$7.76bn in primary minerals imported in 2010, according to the report.

Copper prices have been enjoying record highs, boosted by escalating industrialization in Asian countries such as China and India.

Paranapanema imports 85% of the red metal used at its semi-finished copper products subsidiary Eluma from Chile. Partnerships with small copper producers will help the company to reduce costs.

The company is currently negotiating the sale of its fertilizer unit Cibrafrtil in order to better concentrate on copper.

“We’re talking with a good number of companies and with a lead arranger,” Ferraz said, adding that the deal is expected to close by year-end.

Small mining companies represent only 5% of the 230,000t of copper produced in Brazil last year, according to the report.

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