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;
