BRAZIL Law and Practice Contributed by: Roberta Bilotti Demange and Marina Bertucci Ferreira, Pinheiro Neto Advogados
junior and mid-sized mining companies. The fund could mobilise up to BRL1 billion, including up to BRL250 million from BNDES itself. It will be managed by a consortium comprising Ore Investments and a joint venture between JGP and BB Asset. 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining Internally, the São Paulo stock exchange has not been widely used as a source of financing by mining com - panies. Despite a few companies that are listed on the São Paulo stock exchange – such as Vale, CSN, Gerdau and Ferbasa – most capital market transac - tions involving mining assets are structured in other markets, by way of parent companies. The 2020 Aura Minerals’ successful listing on the São Paulo stock exchange evidenced that the economic conditions are favourable for mining companies other than majors that float their shares in the Brazilian mar - ket. In October 2024, B3 signed a Memorandum of Under - standing (MoU) with the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) to promote investments in mining projects in Brazil. The goal is to increase the number of listed companies in the Bra - zilian market, by developing an ecosystem that ena - bles the dual listing of mineral exploration companies headquartered in Brazil. 5.6 Security Over Mining Tenements and Related Assets According to the Mining Code, the titleholders of min - eral rights in all stages (including exploration licenc - es and rights to apply for a mining concession) are allowed to create a security interest over such mineral rights. In addition, as royalties and streaming transactions cannot be registered against title to the mineral rights, companies usually put in place creative alternatives to ensure that creditors have protections. Even so, the lack of proper regulatory provision for those transac -
tions may add some uncertainty to financing parties, and that may be reflected in less favourable financial conditions for the mining company. A regulation for registration of security over mineral rights has been in effect since 2 March 2022 and deals with registration proceedings, creditor protection mechanisms and foreclosure. As the regulation refers to mining concessions only, changes to such regula - tion are expected for the upcoming years to conform it with the provisions of the Mining Code. The ANM has concluded a public consultation over a draft resolution updating the regulations in late 2025. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector Brazil’s mining industry is projected to mobilise approximately USD68.4 billion in investments between 2025 and 2029, marking a 6.6% increase compared to the previous forecast of USD64.5 billion through 2028. The expected increase highlights the sector’s critical importance to the country’s economic development and its efforts to meet global demand for essential minerals. Although iron ore remains a cornerstone of Brazil’s mining revenue, Brazil is actively diversifying its miner - al portfolio. In particular, increased attention has been directed towards minerals associated with the energy transition and advanced technologies, including rare earth elements, lithium, nickel and copper, as part of a broader strategy to reduce concentration in tradi - tional commodities and enhance Brazil’s positioning in strategic segments of the global minerals market. Overall, Brazil’s mining sector is expected to contin - ue expanding over the coming years, supported by a robust investment pipeline, policy initiatives aimed at critical and strategic minerals, and growing interna - tional demand. This combination points to a medium- term growth trajectory that is increasingly shaped not only by volume, but also by diversification and value- chain considerations.
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