Mining 2025

BRAZIL Law and Practice Contributed by: Carlos Vilhena, Roberta Bilotti Demange and Marina Bertucci Ferreira, Pinheiro Neto Advogados

1. Mining Law: General Framework 1.1 Main Features of the Mining Industry The mining sector plays an important role in the Brazilian economy. In the third quarter of 2024, the mining sector accounted for USD11,18 billion in exports. The mineral sector revenue increased 5% in relation to the same period in 2023, and exports had a 0.6% increase, accounting for 12.60% of the total Brazilian exports in the third quarter of 2024. Iron ore was the most exported mineral substance (70.1%), followed by copper (9.3%) and gold (8.5%). The National Mining Agency (ANM) continues to progress with regulatory efforts to improve transparency and governance standards in the Brazilian mining business environment, adding greater certainty to business. ANM Initiatives The administrative model introduced in 2018 with the creation of ANM is being consistently devel - oped, with the aim of increasing transparency and legal certainty in the mining sector. ANM has repeatedly organised public consultations to discuss regulatory changes with the mining sector and allowed participation of interested parties in meetings of its board of directors. Since its creation, ANM has also put in place the regulatory framework for matters such as (i) reporting of resources and reserves accord - ing to international standards, (ii) tailings dams safety, (iii) liens on mineral rights, (iv) administra - tive sanctions, (v) aerial survey, (vi) reprocessing of waste and tailings, (vii) mine closure, and (viii) prevention of money laundering and terrorism financing related to transactions with precious metals and gemstones. The regulations enacted over the past few years indicate the develop - ment of the administrative model towards the best regulatory practices. ANM is currently pre -

paring its 2025/2026 regulatory agenda, which is expected to cover matters such as updates to the resolution on liens over mineral rights, the issuance of public utility declarations for the pur - poses of implementing mineral servitudes, and the regulation of exploration permits ( guias de utilização ), among others. Public Offer of Areas The public offer applies to areas that had been previously subject to exploration or exploita - tion rights that for some reason expired or were terminated. As a consequence, some geologi - cal knowledge regarding such areas presum - ably exists. The public offer procedure does not extend to areas deemed as free, which will remain subject to the first-come, first-served system. The regulations establish a two-stage process: first, bidders should formalise their interest in an area or block of areas; then, an auction is held among them (if more than one) for the highest offered value. At the second stage of public tenders, neither the identity and number of bidders nor the bid offers are disclosed until the area is awarded. In practical terms, bidders do not know with whom they are competing (speculators, junior explora - tion companies, local mining companies, global major producers, to name a few) and, hence, how the market is pricing each area. The entire process is online, through an electron - ic system put in place by the ANM exclusively for the purposes of the public offers. The regulations regarding public offers were an important step forward towards the generation of new projects and investment opportunities in the mining industry. The tenders concluded

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