The National Mining Agency (ANM) recommended caution in changing the 1967 Brazilian Mining Code.
In a public hearing carried out by the National Chamber of Deputies on August 17, Victor Hugo Bicca, director of ANM, confirmed the sector generated $12.8bn in the first quarter of this year, up 95pc compared to $6.6bn during the same period in 2020. From January to June, mining accounted for 28pc of total Brazilian exports, with a turnover of $38bn due to sales of iron ore, aluminum, and nickel.
Bicca said further regulation should focus on six areas: sustainability, mining production, research, mineral water collection, and royalties warning that “legal certainty was critical for investments”. He mentioned ANM had identified 140 issue points in which regulation and operational guidelines fell within the agency’s responsibility.
The director also called for a percentage reduction (from the current 7pc to almost 0pc) in the Financial Contribution Exploration of Mineral Resources (CFEM).
Assistant secretary of Geology and Mining at the Ministry of Mines and Energy, Lilia Sant’Agostino, also warned of capital losses following past attempts at legislative change.