Mining 2025

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

thus far have been extremely successful for both the regulator and the industry, generating seven times more applications than under the previous procedure, in equivalent timeframes. Exploration and mining companies have wel - comed the opportunity of securing title to explore or mine areas of interest that had been unavailable for years. Companies established in Brazil are lobbying with the ANM to add other areas of interest to coming tender rounds, while foreign prospective investors are reviewing the government’s portfolio of 70,000-plus areas that are ready for tender, seeking opportunities to enter Brazil. Federal Programmes The new government, inaugurated in January 2023, has adopted measures focused on the promotion of clean energy, started with the crea - tion of a department within the structure of the Ministry of Mines and Energy to oversee these matters and foster initiatives that help put Brazil in the centre of the energy transition globally. Measures taken by the previous administration aiming to promote greater institutional articula - tion between mining companies, environmental authorities and other stakeholders involved in the licensing of strategic mineral projects (“Pro- Minerals”) were criticised but remain in force, although with much less traction. The government of President Lula has also claimed to be considering changes to the legal framework for mining to compel companies to actively operate their production units. The government has identified supposedly inactive mines across the country and believes the pro - posed measures could inject resources into the national economy on a high scale. The mining sector, on the other hand, argues that the sce - nario presented by the government does not

reflect reality, as ANM’s data on title to mineral rights is often outdated, resulting in compa - nies being listed as holders of areas that were returned to the federal government long ago. 1.2 Legal System and Sources of Mining Law Brazil is a federative republic divided administra - tively into 26 states and the Federal District. Bra - zil’s legal system is based on civil law tradition. The Federal Constitution currently in force, enacted on 5 October 1988, has general pro - visions involving the economic activity in the country and addresses a few industrial sectors, including mining. The Constitution basically pro - vides that: • mining legislation can only be enacted at the federal level; • property over minerals differs from the prop - erty of the land where minerals are located; • minerals on the ground are a property of the federal government; • exploration can be carried out by Brazilian individuals or legal entities incorporated in Brazil under the authorisation of the federal government; • mining can be carried out by legal entities incorporated in Brazil under the concession of the federal government; • exploration and mining are considered activi - ties of national interest; • the mining concession holder has ownership of the extracted minerals; • landowners, local, state and federal govern - ments are entitled to a royalty; • mining is subject to environmental licensing; and • holders of mining concessions are obligated to restore the areas degraded by mining activities.

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