Brazilian New Mining Framework

Author:Mr Luiz Fernando Visconti
Profession:TozziniFreire Advogados
 
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On June 18, 2013, the Brazilian Government, through the Ministry of Mines and Energy, released the final proposal of the New Mining Framework. The long-awaited proposal will be submitted to the National Congress via Bill of Law. The main changes proposed by the Government are: (i) The creation of the National Council for Mining Policy (CNPM, in Portuguese), in order to assist the President in strategic decisions; (ii) Concessions will be granted through bidding processes, based on a sole title for exploration and mining with a 40-year term, extendable for 20 years, and with an occupation tax and a minimum investment. According to the Federal Government, such measure should reduce speculation. Mineral aggregates (clay, sand, gravel etc.), mineral water and others are exempted. This is an absolute change in the current regime, more specifically in regard to the Priority Right and to the possible mineral exploration until the end of the mine life; (iii) The creation of a new agency named the National Mining Agency (ANM, in Portuguese), with greater management and financial autonomy and basing its decisions in collegiate rulings; (iv) Change (and simplification, according to...

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