BRAZIL Law and Practice Contributed by: Roberta Bilotti Demange and Marina Bertucci Ferreira, Pinheiro Neto Advogados
2.9 Good and Bad Examples of Community Relations/Consultation Impacting Mining Projects Generally, good examples are set when mining com - panies believe in including the local communities as part of the project itself. This can be by creating jobs, developing local infrastructure and, in short, engag - ing communities to a certain extent in the project or operations. However, companies that do not involve local com - munities in their projects from the outset usually face conflicts and popular rejection, which may result in the decrease of political will and support for the project, creating larger difficulties for its development. In addition, the tailings dam failure events in Mariana and Brumadinho, and a mine collapse in Maceió, cre - ated a more complex scenario for mining companies to develop a relationship with communities and to hold their social licence. 3. Climate Change, Energy Transition and Sustainable Development in Mining 3.1 Climate Change Effects So far, there is no specific legislation or regulation referring to climate change matters in Brazil applica - ble specifically to mining activities. The issues related to climate change are indirectly addressed by means of the regular environmental protection laws in force. 3.2 Climate Change Legislation and Proposals Related to Mining Brazil does not currently have a comprehensive stan - dalone climate change statute. In recent years, the federal government has been fostering discussions regarding climate change in general, and not only with regard to mining. This has translated into the advance - ment of several bills in Congress aimed at address - ing climate change concerns, including the regulation of the carbon market, green hydrogen, offshore wind power and biofuels. Brazil’s growing engagement in international climate forums further reinforces the expectation that climate
and more severe penalties in the case of ESG-related defaults. Corporate governance (the “G” pillar) has become the main element for mining companies to bring their activities in line with several aspects related to the environment and society, implementing the “E” and “S” pillars. Companies’ increasing concern with image and repu - tation, associated with a greater corporate awareness of the systemic and financial consequences of non- compliance with the best practices in ESG, has car - ried a considerable weight in the development and implementation of social, environmental and corpo - rate policies. 2.8 Illegal Mining Illegal mining, particularly for gold, is an issue in cer - tain areas of Brazil and poses significant challenges to mining companies and Brazilian authorities, as it not only leads to environmental damages and social conflicts, but also disrupts legal mineral production. In early 2023, a humanitarian crisis in the Yanomami indigenous land drew attention to the impacts of ille - gal mining and led to several measures from Brazilian authorities, in the executive, legislative and judicial branches. Among these measures are the strength - ening of inspections by the competent environmen - tal authorities, the suspension of the presumption of legality for gold acquired in good faith, and the resolu - tion issued by the ANM aimed at preventing money laundering and/or terrorist financing in transactions involving precious metals and gemstones, which establishes additional obligations for the purchase and sale of these minerals. There are also a number of bills in Congress aimed at regulating transactions with gold, so as to ensure traceability and sustainability. Additionally, the Brazilian Mining Association has entered into an agreement with the Ministry of Justice and Public Safety to establish technical co-operation for the development of studies that will support the formulation of policies aimed at combating organised crime linked to illegal mining activities.
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