Brazil is a civil law jurisdiction, with a legal system based on codified legislation. The Federal Constitution treats mining as a matter of national interest and grants the Federal Union exclusive authority to legislate on mineral deposits, mines and mineral resources. It also establishes that mineral resources belong to the Federal Union and are legally separate from land ownership. The holder of a mining right, however, owns the product of mining, while the landowner is entitled to participate in the results of the exploitation.

Exploration and mining activities are carried out under a system of authorizations, licenses and concessions granted to Brazilian nationals or companies incorporated under Brazilian law, with headquarters and management in Brazil.

The regulatory framework is primarily structured by the Federal Constitution, the Mining Code (Decree-Law No. 227/1967), Decree No. 9,406/2018, and complementary legislation addressing, among other matters, mining royalties (CFEM), licensing regimes, artisanal mining, dam safety and illegal mining. Mining activities are also affected by environmental, land and labor regulations.

Brazil is one of the world’s leading mining jurisdictions, with significant mineral resources, particularly iron ore, gold, bauxite, niobium, manganese, nickel, copper, lithium and rare earth elements.

Administrative regulation is exercised mainly by the Ministry of Mines and Energy (MME), responsible for mineral policy and certain granting acts, and the National Mining Agency (ANM), responsible for the administration, regulation and oversight of mining activities.

Brazil is a signatory to the New York Convention, ratified in 2002, and foreign arbitral awards are generally recognized and enforceable, subject to recognition proceedings before the Superior Court of Justice.

Brazil has a policy under consolidation for critical and strategic minerals (PNMCE), which complements earlier initiatives such as the Policy to Support Environmental Licensing of Investment Projects for the Production of Strategic Minerals (Pró-Minerais Estratégicos), established by Decree No. 10,657/2021, and the Interministerial Committee for the Analysis of Strategic Minerals Projects (CTAPME).

This agenda seeks to enhance mineral security, attract investment, foster value addition and support the energy transition. Its scope covers minerals considered strategic for economic security, advanced technologies and low-carbon supply chains, including lithium, rare earths, nickel, copper, graphite and niobium.

Between 2023 and 2026, regulatory and financial instruments were structured to give practical effect to this agenda. Notably, Decree No. 11,964/2024 established the regulatory basis for qualifying strategic mineral transformation projects as priority projects for the issuance of infrastructure debentures and incentivized debentures. In parallel, complementary instruments have been developed, including the structuring of the Strategic Minerals Private Equity Fund (FIP Minerais Estratégicos) and BNDES/FINEP calls aimed at innovation and project financing.

Although the framework is still evolving, this set of regulatory, financial and institutional instruments effectively constitutes a national policy for critical and strategic minerals aligned with international trends.

The list of strategic minerals for Brazil was defined by CTAPME Resolution No. 2/2021, which classifies them into three categories: (i) minerals for which Brazil is highly dependent on imports to supply vital sectors of the economy, such as sulfur, phosphate and molybdenum; (ii) minerals relevant due to their application in high-technology products and processes, such as cobalt, copper, tin, graphite, platinum group metals, lithium, niobium, nickel, silicon, thallium, tantalum, rare earths, titanium, tungsten, uranium and vanadium; and (iii) minerals in respect of which Brazil has comparative advantages and which are essential to the economy because they contribute to the trade surplus, such as aluminum, copper, iron ore, graphite, gold, manganese, niobium and uranium.

The Brazilian government provides targeted support to the mining sector, primarily through financing mechanisms, tax incentives, and investment facilitation policies, rather than direct subsidies.

At the federal level, long-term financing is available through the Banco Nacional de Desenvolvimento Econômico e Social, which supports mining projects (including infrastructure and processing) via credit lines with competitive conditions.

Brazil also offers tax incentives, especially for projects located in less-developed regions. For instance, regional development agencies such as the Superintendência do Desenvolvimento da Amazônia and the Superintendência do Desenvolvimento do Nordeste may grant reductions in corporate income tax for qualifying mining projects. Additional incentives may be available at the state level, including VAT (ICMS) benefits.

More broadly, the government promotes investment in strategic mining through policy initiatives such as the Programa de Parcerias de Investimentos and the Pro-Strategic Minerals Policy (established by Decree No. 10,657 of 2021), which aim to improve regulatory coordination, prioritize licensing processes, and enhance legal certainty for key projects.

Additionally, Bill No. 2,780/2024 is currently under legislative consideration and proposes further tax incentives for projects involving critical and strategic minerals. Within the tax framework, four main measures are proposed: (i) exemption from withholding income tax (WHT) on amounts paid or credited to foreign entities as consideration for the use of trademarks, patents, or technology/process licenses, when such rights are used in the transformation, in whole or in part, of critical/strategic minerals in Brazil; (ii) express inclusion, in Law No. 11,196 of 2005 (the “Lei do Bem”), of legal entities developing projects involving critical/strategic minerals, thereby enabling access to R&D tax incentives; (iii) extension of the special infrastructure tax regime (REIDI), established by Law No. 11,488 of 2007, to activities related to the extraction and transformation of critical/strategic minerals, as well as to the associated production chain. This allows for the suspension of PIS/COFINS on the acquisition of goods and services used in project infrastructure works; and (iv) creation of a special customs regime for the export and import of goods destined for exploration, extraction, processing, and the broader production chain of such minerals.

The Brazilian legal framework does not make a distinction between foreign and national investors, although the Profit Remittance Law states that foreign direct investment and certain financial transactions are subject to prior registration by the Central Bank of Brazil (BACEN). BACEN is responsible for registering any foreign capital, which shall also be registered by the receiving party in their accounting statements.

In general, Brazil does not have restrictions on foreign investments. However, for national security reasons, some activities are subject to special conditions. This is the case for mining in frontier areas, and for the acquisition, rural lease or other rights over real estate properties located within frontier areas (150 kilometres), which require prior approval by the National Security Council.

It is important to highlight that the acquisition of rural lands by foreign companies, or Brazilian companies controlled by foreigners or with most of its capital controlled by foreigners or foreign companies, is subject to specific legal requirements and certain legal restrictions.

Finally, only Brazilians citizens or companies incorporated under Brazilian laws, with headquarters and management offices in the country, are allowed to mine in Brazil.

Restrictions arise mainly in specific context: (i) Border areas: Acquisitions of rural land, including for mining purposes, by foreign individuals or foreign-controlled companies may be subject to limitations under Law No. 5,709 of 1971 and national security considerations; (ii) Nuclear minerals: The exploration and exploitation of nuclear minerals (e.g., uranium) are subject to a state monopoly, exercised by the Indústrias Nucleares do Brasil. However, Law No. 14,514/2022 allows private companies to participate in the uranium value chain through contractual arrangements with Indústrias Nucleares do Brasil (INB), with the aim of increasing production—currently limited—and attracting investment to new projects, such as the Santa Quitéria project (State of Ceará) and (iii) Regulatory approvals: Mining rights transfers (including indirect changes of control) are subject to approval by the ANM.

Brazil generally allows the free repatriation of capital and remittance of profits, dividends, interest, and other returns by foreign investors, including in the mining sector.

Repatriation is subject to compliance with foreign exchange and tax regulations, notably the requirement that foreign investments be duly registered with the Banco Central do Brasil through the applicable electronic system (RDE-IED). Proper registration ensures the investor’s right to remit funds abroad and to repatriate capital.

Remittances must be carried out through authorized financial institutions and in accordance with Brazil’s foreign exchange framework, currently governed by Law No. 14,286 of 2021 and related regulations.

From a tax perspective, dividends distributed out of profits are generally exempt from withholding income tax, while other payments (such as interest or service fees) may be subject to withholding taxes, depending on their nature and applicable double taxation treaties.

Brazil generally adopts a liberal regime for the export of minerals, with no broad prohibitions on the export of raw materials and no general export quotas. Mining companies are, in principle, free to export their production.

However, exporters must comply with customs procedures and foreign trade regulations, and in specific cases, government authorization may be required. For example, the export of nuclear minerals (such as uranium) is subject to strict control and must be conducted under the authority of the Indústrias Nucleares do Brasil, in line with the state monopoly established by the Federal Constitution of 1988.

Additionally, exports of certain minerals may be subject to traceability, certification, or origin requirements, particularly in the case of gold, due to regulatory and anti-illegal mining concerns.

Brazil does not impose export tariffs on minerals and metals. The country follows a constitutional principle that exports are generally tax-exempt, and there are no sector-specific export duties applicable to mining products.

However, Supplementary Law No. 214 of 2025, which establishes the general rules for the Tax on Goods and Services (IBS), the Contribution on Goods and Services (CBS), and the Selective Tax, was enacted on January 16, 2025.

Among its key provisions, it is noteworthy that the President vetoed the clause that would have fully exempted exports of mineral products from the Selective Tax. As a result, such transactions may be subject to taxation upon export.

According to the law, the mineral goods subject to the Selective Tax include: (i) Iron ore; (ii) Crude oil and bituminous mineral oils; and (iii) Natural gas.

Import duties vary depending on the specific product classification under the Mercosur Nomenclature (NCM) but are typically moderate for raw materials and may be higher for processed or value-added products.

Brazil does not impose general mandatory government or local equity participation requirements across the mining value chain. Mining projects are typically developed by private companies, including foreign-controlled entities, without an obligation to partner with the State or local stakeholders.

However, certain exceptions are relevant:

(a) State participation in specific sectors: The exploration and exploitation of nuclear minerals remain under a state monopoly, exercised by Indústrias Nucleares do Brasil. Private parties may participate only through contractual arrangements with INB, pursuant to recent regulatory developments.

(b) Regulatory approvals and mining rights: Mining activities depend on the granting and maintenance of mineral rights by the ANM.

(c) Environmental and social requirements: Projects must undergo environmental licensing and may be subject to public consultations and stakeholder engagement, particularly where there are impacts on local communities.

(d) Indigenous lands: Mining on Indigenous lands is subject to specific constitutional provisions under the Federal Constitution of 1988 and would require additional regulation and congressional authorization, which has not yet been fully implemented in practice.

Under the Federal Constitution, mineral deposits and mineral resources belong to the Federal Union, regardless of land ownership. Mining rights are granted by the State and confer upon the holder, as applicable, the right to explore and/or economically exploit mineral resources within a defined area, subject to compliance with legal and regulatory requirements. Although the mineral resource in situ remains owned by the Federal Union, the holder of the mining right owns the product of mining.

Exploration and mining activities may only be carried out by Brazilian nationals or companies incorporated under Brazilian law, with headquarters and management in Brazil, through authorizations, concessions or other legal regimes provided by law. Mining without a valid mineral title may give rise to administrative, civil and criminal sanctions.

Foreign investors may fully hold investments in mining assets in Brazil, including through ownership or control of companies holding mining rights. It should be noted, however, that only Brazilian nationals or companies incorporated under Brazilian law, with headquarters and management in Brazil, may hold mining rights directly.

In Brazil, the principle of separation between land ownership and mineral resources applies. While mineral resources belong to the Federal Union, surface rights may be privately owned. Accordingly, the discovery of mineral resources by a landowner does not, by itself, grant the right to exploit them, which depends on obtaining the corresponding mining title.

Under the exploration authorization and mining concession regimes, the holder of the mining right may obtain access to the area necessary to exercise the granted rights, regardless of whether it owns the land, through agreement with the landowner or, absent consensus, through a specific judicial proceeding provided for in the Mining Code. In such cases, the landowner or possessor is entitled to compensation for damages caused and compensation for occupation and use of the area.

In addition, the landowner is entitled to participate in the results of mining, in an amount not less than 50% of the royalty (CFEM) amount due, subject to the applicable rules and the mineral substance being exploited.

The exploration rights regime in Brazil is governed primarily by the Mining Code (Decree-Law No. 227/1967) and Decree No. 9,406/2018. Mineral exploration is carried out through an exploration authorization issued by the National Mining Agency (ANM), generally subject to the priority principle (first come, first served), under which the first qualified applicant in an open area has preference in obtaining the title.

An exploration authorization grants the holder the right to conduct activities aimed at identifying and delineating the mineral deposit, determining the quality and quantity of the mineral resource, and assessing the technical and economic feasibility of its exploitation. The application is subject to compliance with legal, technical and registration requirements set forth in the applicable regulations.

The term of the authorization ranges from one to four years, and may be extended in the cases provided by law. During the term of the title, the holder must comply with regulatory obligations, including implementation of the exploration program, payment of applicable fees, compliance with environmental requirements and periodic submission of information when required.

At the end of the exploration works, the holder must submit a Final Exploration Report (Relatório Final de Pesquisa – RFP), concluding as to the existence of the deposit and the feasibility of its economic exploitation. Once the report is approved, the holder generally has one year to apply for a mining concession, failing which it may lose its priority right.

An exploration authorization does not, by itself, confer a right to mine. During this phase, any mineral extraction is only permitted in exceptional cases and subject to a specific title or authorization. Failure to comply with applicable obligations may result in warnings, fines, forfeiture or loss of the mining right.

In Brazil, the ordinary regime applicable to most mineral substances is two-phased, comprising (i) the exploration phase and (ii) the subsequent mining concession phase. Once the exploration stage has been completed and the applicable legal and regulatory requirements have been met, mining rights are generally granted through a mining concession (concessão de lavra), issued by ordinance of the Ministry of Mines and Energy. This is the principal title authorizing the industrial exploitation of a mineral deposit, including the extraction and processing of the mineral substances expressly covered by the title.

A mining concession may only be granted over a previously explored area, following approval of the Final Exploration Report, submission of the Economic Exploitation Plan (Plano de Aproveitamento Econômico – PAE), and compliance with applicable environmental licensing requirements. The title may only be held by a duly qualified mining company.

The concession grants its holder the right — and corresponding obligation — to exploit the deposit in accordance with the approved PAE, generally until exhaustion of the reserve, as Brazilian law does not establish a fixed term for the duration of a mining concession. The right may be assigned or encumbered, subject to regulatory approval. The concession is limited to the mineral substances expressly covered by the title, and the exploitation of additional substances may require amendment of the title.

Concession holders are subject to ongoing obligations, including operating in accordance with the approved mine plan, paying applicable charges — including the Financial Compensation for Mineral Exploitation (CFEM) — complying with regulatory, environmental, health and safety requirements, reporting periodically to the National Mining Agency (ANM), and implementing mine closure and environmental rehabilitation measures. Failure to comply may trigger administrative sanctions, including fines, suspension and forfeiture of mining rights.

In addition to the ordinary authorization and concession regime, Brazilian law provides for other regimes that also authorize mining activities in specific circumstances and for certain mineral substances, including the artisanal mining permit (Permissão de Lavra Garimpeira – PLG), the licensing regime and the extraction regime. These regimes have their own requirements, purposes and limitations, but remain exceptional in relation to the ordinary regime, which continues to be the principal legal framework applicable to large-scale mining projects in Brazil.

Holders of mining rights are required to pay the Financial Compensation for Mineral Exploitation (Compensação Financeira pela Exploração Mineral – CFEM), a government royalty of a non-tax nature due as consideration for the economic exploitation of mineral resources. CFEM is generally payable upon the sale, consumption, processing, use or public auction sale of mineral resources. Rates vary from 1% to 3.5%, depending on the mineral substance exploited.

The legal framework governing mining royalties underwent significant changes with the enactment of Law No. 13,540/2017, which amended the CFEM calculation basis, applicable rates and the distribution percentages allocated to states and municipalities, among other aspects.

Amounts collected are distributed among the federal government, states and municipalities, including producing municipalities and, in certain cases, municipalities affected by mining activities. The National Mining Agency (ANM) oversees the collection and distribution framework.

In Brazil, mining titles may be assigned (transferred) and, in certain circumstances, encumbered as security, subject to compliance with applicable legal and regulatory requirements.

Mining rights, including exploration permits and mining concessions, may be transferred to third parties, provided that the transferee meets the legal requirements to hold mining rights, including being a Brazilian national or an entity incorporated under Brazilian law, and that the assignment is submitted to and approved by the National Mining Agency (ANM).

The process generally involves filing an assignment request supported by relevant corporate and technical documentation, review by the ANM and recordation on the title, at which point the transfer becomes effective vis-à-vis the regulator and third parties. The transferee succeeds to the original holder’s rights and obligations associated with the title.

With respect to security interests, Brazilian law permits certain mining rights to be encumbered to support financing transactions. Under ANM Resolution No. 90/2021, mining concessions and manifests of mine may be granted as collateral, subject to recordation with the ANM in order to be effective against third parties.

Enforcement of the security or disposal of the encumbered right does not result in automatic transfer of title, which remains subject to prior approval and recordation before the ANM, as well as compliance by the acquirer with applicable legal requirements.

Under the 1988 Federal Constitution, indigenous peoples hold original rights over the lands they traditionally occupy, which are subject to a special legal regime. The Constitution provides that mining activities on indigenous lands are subject to: (i) specific legislation regulating the matter; (ii) authorization by the National Congress; (iii) consultation with the affected indigenous communities; and (iv) participation by those communities in the economic results of the project.

In the absence of the implementing legislation required by the Constitution, formally recognized indigenous lands have generally not been considered open to the development of large-scale mining projects, resulting in a practical restriction on such activities.

Brazil is a signatory to ILO Convention No. 169, which underpins the duty to carry out prior, free and informed consultation in relation to measures and projects potentially affecting indigenous peoples and traditional communities. In the Brazilian context, implementation of principles associated with FPIC occurs primarily through this consultation duty, which must be conducted in good faith and in a culturally appropriate manner, with a view to seeking agreement, in conjunction with applicable socio-environmental and regulatory requirements.

Notwithstanding the pending legislative regulation of mining on indigenous lands, in February 2026, Justice Flávio Dino of the Brazilian Supreme Federal Court issued a preliminary injunction authorizing, on an initial basis, mineral exploitation by indigenous communities on their own lands, focusing on the Cinta Larga people (State of Rondônia). The measure was grounded, among other factors, in combating illegal mining and establishing a transitional framework. Congress was given 24 months to enact legislation on the matter and establish core conditions, including prior consultation with affected communities, a 1% cap on the area of indigenous land available for such activities, and compliance with sustainability principles.

In Brazil, mining projects are generally subject to prior environmental licensing, as mining is considered a potentially polluting activity and one that uses natural resources. Depending on the applicable jurisdiction (federal, state or, in specific cases, municipal), projects may be subject either to the ordinary licensing process — comprising a Preliminary License (Licença Prévia – LP), Installation License (Licença de Instalação – LI) and Operating License (Licença de Operação – LO) — or to simplified licensing procedures applicable in specific circumstances.

To support the licensing process, the project developer must submit environmental studies compatible with the size, location and potential impacts of the project. For larger projects or those with significant degradation potential, an Environmental Impact Assessment and corresponding Environmental Impact Report (EIA/RIMA) is typically required. Depending on the characteristics of the project and the applicable regulatory framework, other environmental studies may also be required.

The Brazilian environmental regime also imposes rehabilitation and restoration obligations. The Federal Constitution expressly establishes the miner’s duty to restore degraded areas in accordance with the requirements imposed by the competent authority. In practice, mitigation, compensation and environmental rehabilitation measures are typically imposed as conditions to the issuance and maintenance of environmental licenses.

In addition, mining legislation requires title holders to prepare, maintain, update and implement a Mine Closure Plan for each mining operation, addressing safe closure of operations, decommissioning of structures, environmental rehabilitation and enabling future uses of the area, with the objective of avoiding socio-environmental liabilities for society and the public authorities.

Failure to comply with environmental and mine closure obligations may trigger administrative, civil and criminal liability. Consequences may include warnings, fines, suspension or revocation of licenses, remediation orders, embargoes or shutdown of activities and, in serious cases, criminal liability and full reparation of environmental damages.

In Brazil, mining activities are subject to a framework of occupational health and safety rules, sector-specific regulations, and specific obligations relating to operational and geotechnical safety.

From a labour law perspective, the Brazilian Federal Constitution of 1988 and the Consolidation of Labour Laws (CLT) apply, together with the Regulatory Standards issued by the Ministry of Labour and Employment.

These rules establish key requirements for mining and other high-risk activities, covering, among other aspects, occupational risk management, workers’ health, machinery and equipment safety, ventilation, explosives handling, and emergency response.

From a regulatory perspective, the National Mining Agency (ANM) also imposes obligations relating to the safety of mining operations, including technical requirements for structural stability, safe mine operation and compliance with applicable regulatory standards. In the case of mining dams, specific safety requirements apply, including monitoring, inspections, emergency action plans and, where applicable, obligations relating to the decharacterization of structures.

Failure to comply may result in administrative sanctions, suspension or shutdown of activities, as well as civil and criminal liability in serious cases.

Brazil has no sector-specific climate risk disclosure regime for mining. However, broadly applicable rules create meaningful disclosure obligations across the value chain.

For listed mining companies, the Brazilian Securities and Exchange Commission (CVM), primarily through CVM Resolution No. 20/2022, requires disclosure of environmental and climate-related risk factors in annual fillings. CVM Resolution No. 59/2021 introduced a comply-or-explain mechanism encompassing greenhouse gas (GHG) inventories, TCFD-aligned reporting, and ESG performance indicators.

More significantly, CVM Resolution No. 193/2023 incorporates the ISSB Standards (IFRS S1 and IFRS S2) into the Brazilian capital markets framework, making climate-related disclosure mandatory for all publicly traded companies from fiscal year 2026 onwards.

On the credit side, CMN Resolution No. 4,945/2021 requires financial institutions to integrate climate risk into lending decisions, effectively compelling mining borrowers to provide climate risk data to their lenders.

Law No. 15,042/2024 established Brazil’s Emissions Trading System (SBCE), which will impose GHG monitoring and reporting obligations on operators emitting above 10,000 tCO₂e per year, subject to a phased implementation period of approximately five to six years.

There are currently no legislative proposals specifically targeting climate disclosure in the mining sector. However, the Ministry of Finance’s draft Sustainable Taxonomy (December 2024) may introduce mandatory climate-related revenue and capital expenditure tagging mining activities.

Brazil dos does not impose sector-specific decarbonisation obligations on the mining industry. However, economy-wide climate legislation establishes binding constraints on high-emitting activities that extend across the mining value chain.

The principal instrument is Law No. 15,042/2024, which established the SBCE. The SBCE introduces a cap-and-trade regime under which regulated entities must comply with GHG emission caps or acquire allowances and credits to offset excess emissions. Mining operators emitting above 25,000rCO2. per year will be subject to compliance obligations once the system is fully operational, following a phased implementation period expected to span five to six years.

Beyond the SBCE, broader decarbonisation policies affect the mining supply chain. These include biofuel mandates under RenovaBio (Law No. 13,576/2017) and the “Fuel of the Future” Law (Law No. 14,933/2024) which impose blending requirements and carbon intensity reduction targets on fuel producers and distributors, with indirect impacts on mining logistics and energy consumption. Emerging regulatory and incentive frameworks for low-carbon hydrogen may further influence energy sourcing across the sector.

There currently no legislative proposals specifically targeting decarbonisation in the mining sector. However, forthcoming SBCE implementing regulations (including sectoral caps and national allocation plans) are expected to further define and potentially extend compliance obligations for emissions-intensive industries such as mining.

The key instruments applicable to the mining value chain, including securities regulation, financial sector rules, the SBCE, and fuel decarbonization mandates, are addressed above. Brazil does not levy a carbon tax, and there are currently no proposals to introduce one.

In the context of the 2023 tax reform (Constitutional Amendment No. 132/2032), there was significant debate as to whether the newly Selective Tax (Imposto Seletivo), designed to discourage consumption of goods harmful to health or the environment, could operate as a de facto carbon levy. The implementing legislation did not adopt this approach. Instead, the Selective Tax applies to vehicles based on carbon footprint and energy efficiency criteria, with indirect implications for mining logistics and fleet operations.

Of particular relevance to the mining sector is the Brazilian Sustainable Taxonomy (TSB), established by Decree No. 12,705/2025. The TSB is the first taxonomy globally to expressly cover the mining and extractives industries, setting technical criteria to classify activities as sustainable for purposes of accessing green financing and capital market. Although currently voluntary, the TSB is expected to increasingly inform regulatory and lending decisions with mandatory application anticipated for large companies and financial institutions in subsequent phases.

Law No. 14,904/2024 further introduced national guidelines for climate adaptation planning, with implications for mine licensing and operational continuity planning at the permitting stage.

In Brazil, there are no unusual taxes exclusively applicable to mining activities beyond the general federal, state and municipal tax regime. However, the sector is subject to certain industry-specific charges and regulatory fees that are functionally relevant and often highlighted as mining-specific burdens.

The most significant is the Financial Compensation for Mineral Exploitation (CFEM), which, although legally characterised as a non-tax governmental charge (royalty), is the main economic burden specific to mining operations. CFEM is levied on the economic exploitation of mineral resources, with rates ranging from 1% to 3.5%, depending on the mineral substance.

In addition, holders of exploration permits are subject to the Annual Fee per Hectare (Taxa Anual por Hectare – TAH), payable during the exploration phase as a condition for maintaining the title. At the state level, certain jurisdictions also impose a Mineral Resources Inspection Fee (Taxa de Fiscalização de Recursos Minerais – TFRM), designed to fund regulatory oversight of mining activities.

Finally, mining operations may be subject to standard Brazilian taxation (corporate income tax, social contributions, and indirect taxes), but the CFEM, TAH and, where applicable, TFRM constitute the main sector-specific financial obligations associated with mining activities.

The Brazilian mining sector has been undergoing a period of increasing regulatory sophistication and greater integration between environmental, social and financial agendas. In recent years, the National Mining Agency (ANM) has advanced the modernisation of the regulatory framework, with a focus on digitalisation of processes, enhanced enforcement, and the development of instruments aimed at improving legal certainty for financing in the sector, including the regulation of security interests over mining rights.

From an environmental and operational safety perspective, ongoing developments in mining tailings dam safety regulation and geotechnical risk management remain particularly relevant, with increasing requirements relating to monitoring, emergency action plans and the decommissioning and decharacterisation of structures. This area continues to be highly sensitive following major incidents in Brazil, with direct impacts on regulation and operational practices.

In addition, there is a growing integration between environmental licensing and ESG considerations, with increasing requirements related to socio-environmental governance, stakeholder engagement with affected communities, and management of cumulative impacts.

From a market perspective, Brazilian mining has also been influenced by rising global demand for strategic minerals and the energy transition, which has driven investment in expansion projects and exploration of critical minerals, as well as increased interest from international investors.