BRAZIL Law and Practice Contributed by: Carlos Vilhena, Roberta Bilotti Demange and Marina Bertucci Ferreira, Pinheiro Neto Advogados
São Paulo stock exchange (although very few mining companies are listed on that exchange), the international capital markets and the inter - national financing markets. The Canadian, Unit - ed States, British and Australian markets are important sources of investment (both equity and debt). In early 2024, the National Bank for Economic and Social Development (BNDES) announced the Strategic Minerals Investment Fund, designed to support junior and mid-sized min - ing companies. The fund could mobilise up to BRL1 billion, including up to BRL250 million from BNDES itself. It will be managed by a con - sortium 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 companies. Despite a few companies that are listed on the São Paulo stock exchange – such as Vale, CSN, Gerdau and Ferbasa – most capital market transactions involving min - ing 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 min - ing companies other than majors that float their shares in the Brazilian market. In October 2024, B3 signed a Memorandum of Understanding (MoU) with the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) to promote investments in mining pro - jects in Brazil. The goal is to increase the number of listed companies in the Brazilian market, by
developing an ecosystem that enables the dual listing of mineral exploration companies head - quartered in Brazil. 5.6 Security over Mining Tenements and Related Assets According to the Mining Code, the titleholders of mineral rights in all stages (including exploration licences and rights to apply for a mining con - cession) are allowed to create a security interest over such mineral rights. In addition, as royalties and streaming transac - tions cannot be registered against title to the mineral rights, companies have to put in place creative alternatives to ensure that creditors have protections. Even so, the lack of proper regulatory provision for those transactions 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 min - eral rights has been in effect since 2 March 2022, and deals with registration proceedings, credi - tor protection mechanisms and foreclosure. As the regulation refers to mining concessions only, changes to such regulation are expected for the upcoming years to conform it with the provisions of the Mining Code. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector Brazil’s mining industry is projected to mobilise approximately USD64.5 billion in investments between 2024 and 2028, marking a 28.8% increase compared to the previous forecast of USD50.04 billion through 2027. The expected increase highlights the sector’s critical impor -
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