the mining regulatory process in...
TRANSCRIPT
WG I – A: Natural Resources and Infrastructure Working Group
BRAZIL: THE LAND OF GREAT OPPORTUNITIES
The Mining Regulatory Process
in Brazil
Miguel Antonio Cedraz Nery, DSc
Director-General / DNPM
Niobium
Iron Ore
Bauxite
Manganese
Graphite
Tantalite
Global Player Exporter Self Sufficient
Nickel
Magnesite
Kaolin
Vermiculite
Chromium
Mica
Limestone (cement)
Industrial Diamond
Titanium
Gold
Tungsten
Talc
Importer
Phosphate
Zircon
Zinc
Diatomite
Potassium
Sulfur
Metallurgic Coal
Rare Earths Minerals
Importer
/Producer
BrazilParticipation in the Worldwide Mining Market
Value of Mineral Production 2000 – 2009
(No Oil & Gas)
0
5
10
15
20
25
30
7.19.1
6.8 7.3 7.8
12.9
17.519.7
2924
US$ Billion
4
Investment in Mineral Exploration -Brazil(2004 – 2008)
2008: Exploration Permits = US$ 346 Million; Mining Concession Revaluation = US$ 136,3 Million
Source: DIPEM + RAL / DNPM
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DNPM National Department of Mineral Production
• Federal Agency Institution,
linked to Ministry of Mines and
Energy, whose is responsible to
promote the management of
the mineral resources, having
as mission:
• to supervise geological and mineral exploration
• to development of mineral
techonology;
• to regulate the mining
activities.
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The Mining Code
• The systems for exploration and
exploitation of mineral resources, can
be classified as follows:
• Broad Application
• Authorization
• Concession
• Restricted Application
• Licensing
• Small-scale Mining Permission
• Register of Extraction
Systems
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The Brasilian Mining Code
� Stage of mineral exploration before mining concession;
� It is granted by Permit of the DNPM (Alvará) ;
� The priority is determined by the chronological order of requests at the DNPM;
� It is valid for three years, renewable, generally for an equal period;
� It is need the Final Exploration Report proven the existence of ore deposit;
� if DNPM to approve the report, a request for mining concession can be filed within one year;
� payment of an annual fee, that is demanded throughout the period of the exploration permit.
� Whenever the exploration permit is renewed the fee is raised to dubled.
Authorization System
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The Mining Code
� a Project of Mining;
� Environmental License, issued by the
competent environmental agency;
� Registration as company in the National
or State Commercial Registry;
� proof of financial capability to undertake
the project.
Concession System
� It regulates the stage of mining activity;
� The concession is emitting by Minister of Mines and Energy.
� The following requisites have to be met:
Reformulation of the Regulation
•Mining Code up date
• Need to introduce
instruments of regulation;
• Elimination of
bureaucratic requirements
and decentralization of
decisions;
• Systematics of auction for
areas in availability
National Regulatory Agency
• Will be criated Agency that,
substitute of DNPM
• Special Autarchy as
regulatory government
institution of the mineral attivity
regulator
• Board of Directors with
decision power
• Directors with mandates
defined
Statistics Mining Process
Títulos 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Application for
Authorization
10,068 11,577 11,766 13,976 14,413 16,362 17,334 23,561 26,875 16,037
Exploration
Permits
21,220 11,225 9,309 11,066 10,925 14,451 12,875 13,901 18,269 15,123
Approved
Exploration
Peport
890 1,275 1,231 1,282 986 1,368 1,038 1,428 1,099 1,493
Mining
Concessions
300 309 362 303 335 389 437 324 268 404
Licences
Granted
1,385 1,429 1,315 1,383 1,312 1,727 1,534 1,496 1,220 1,132
Artisian-
Mining
Permissions
37 8 338 52 99 73 89 46 106 122
Registration of
Extration
- 44 90 70 86 88 179 134 146 202
Grants Process for Exploration and Mining
13
Main Brazilian Mineral Provinces
State
FERROUS
METALS
BASE
METALS GOLD BAUXITE
PA 28 247 1479 166
PB 42 11 15
PE 9 15 5
PI 118 107 28
PR 14 4
RJ 3 2 2
RN 64 3 8
RO 12 60 96
RR 14 26 5
RS 9 64 67
SC 2 11
SE
SP 1 16 40 8
TO 37 128 191
State
FERROUS
METALS
BASE
METALS GOLD BAUXITE
AC 1 89
AL 12 1 18
AM 18 19 118
AP 30 5 22 10
BA 501 169 106 18
CE 115 176 61
DF 3
ES 4 12 1
GO 83 472 251 3
MA 6 1 24 33
MG 625 225 204 120
MS 20 46 3
MT 6 131 442
Available Areas by State
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Modernization of the Management of the Mineral Resources
Adoption of Modern and
Transparent Procedures;
Agility and Legal Security in the
Licensing Acts;
Efficient Fiscalization;
Increase of the Efficiency of the
Sectorial Collection;
Institucional and Functional
Valuation.
Rescue and Fortity the Functions of State of DNPM
Technological Modernization
New Electronic Pre-Application – System:
• Responsible for the collection of the data entry contained in the
electronic daily pay-petitions filled by miner way Internet;
• It is need presented in the Superintendence of the DNPM for
composition of the database and procedural information, this way,
generating the mining process.
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SigMine System
• A system very security;• Display areas of the mining processes in real time; • Allows to visualize interference between mining grants areas;• Could be make any zoom for visualize grants areas
Final Considerations• The investors have guaranted yours rigths;•To strong power of the state in regulatory process
• Cancel of the Mine Code enforcement
• Estimulate of the concorrence in brasilian mining sector
• Strong of competitivity of the mining industry
• Simplify of the management mineral sector.
