Business Contracts Corporate Law Data Privacy Dispute Resolution Intellectual Property International Labour and Employment Tax and Customs Law All Practice Areas

Fabiano Deffenti Vanessa Ribeiro T. Borges Roberto La Laina Gabriela Conca Jessica Domingues de Araujo All Team Members

PT·EN Contact Us

Legal Guides / Mining and Natural Resources

Brazilian Mining Law: a guide for foreign companies

Brazil holds the world’s largest reserves of niobium and tantalite, and ranks among the top global producers of iron ore, bauxite and gold. Access to those resources is governed by a federal concession regime that is mandatory, highly regulated and closely enforced.

Quick Read

The federal government owns the minerals: All mineral resources belong to the Union. Private companies access them through an ANM concession, not through ownership of surface land.

Environmental licensing is a parallel process: A mining concession does not authorise operations. A separate IBAMA or state environmental licence is mandatory and often takes longer than the mining title itself.

Foreign ownership is permitted but restricted: Foreign companies may not hold mining titles directly; investment must be channelled through a Brazilian-incorporated entity.

Dam safety and community obligations are intensifying: Following Mariana (2015) and Brumadinho (2019), Brazil significantly strengthened dam safety legislation and social liability rules.

Brazil’s mining sector operates under a federal concession system that is mandatory, non-delegable and subject to significant ongoing obligations

The main legislative framework is the Mining Code and a dense body of ANM regulations. The Federal Constitution vests ownership of all mineral resources in the federal government. The ANM is the federal agency responsible for regulating, supervising and granting mining rights, maintaining the national register of mining titles (SIGMINE) and enforcing compliance with technical, environmental and financial conditions.

Mining activity also engages an environmental licensing regime administered by IBAMA at the federal level and by state agencies. These two regulatory tracks operate independently and must both be navigated for a project to proceed lawfully. Foreign companies frequently underestimate the length of both processes, the ongoing compliance obligations attached to active titles, and the liability exposure arising from dam safety and community relations legislation.

Mining Titles and Authorisations

Types of mining rights in Brazil

Exploration Authorisation (Alvará de Pesquisa)

The first stage of the concession process, authorising geological investigation for 1 to 3 years. Does not permit extraction. A Final Research Report must be submitted demonstrating economic viability.

Mining Concession (Concessão de Lavra)

The primary instrument authorising commercial extraction, granted by the Minister of Mines and Energy on ANM recommendation. Indefinite term, subject to the obligation to mine, CFEM payment and environmental compliance. Can be revoked for non-compliance.

Simplified Licencing (Licenciamento)

A streamlined regime for small-scale extraction of industrial minerals and construction aggregates. Renewed annually, faster to obtain, but cannot be converted to a full concession.

Garimpeiro Permit (Permissão de Lavra Garimpeira)

Artisanal mining of gold, diamonds and gemstones, available only to Brazilian nationals or cooperatives. Foreign companies may structure offtake agreements subject to supply chain due diligence.

Monopoly Minerals

Nuclear minerals (uranium, thorium) are under exclusive federal control and may only be mined with INB. Potassium and strategic minerals may face security-related restrictions.

Transfer and Assignment of Titles

Titles may be transferred only with prior ANM authorisation. Changes of control at the parent level can trigger notification requirements, a common oversight in mining M&A.

Note: Indigenous lands, quilombola territories and areas subject to environmental protection designations impose additional restrictions or outright prohibitions on mining activity. Verification of land status is a prerequisite to any application or acquisition.

Ongoing Obligations

What every concession holder must comply with

Holding a mining title in Brazil is not a passive right. The ANM imposes continuing technical, financial, safety and social obligations. Failure to comply can result in revocation.

CFEM Royalty

Payable on net revenue from mineral sales: 3.5% iron ore, 3% gold, 2% bauxite, 2% manganese, 1% most construction materials. Since 2017, base is gross revenue less taxes and freight.

Annual Mining Report (RAM)

Covers production, reserves, workforce data, investments and licence status. Late submission attracts fines and can ground suspension of the title.

Obligation to Mine

Inactivity beyond 6 consecutive months without ANM authorisation is grounds for revocation. A formal temporary suspension must be requested to protect a dormant title.

Mining Licence Fees (TAH)

Annual fee based on concession area and title type. Non-payment can result in suspension and federal enforcement proceedings for the debt.

Dam Safety (PNSB)

Under Law 14,066/2020, operators must register dams, prepare a Dam Safety Plan, appoint a responsible engineer and maintain an emergency plan, with stricter rules for higher-risk categories.

Mine Closure Plan

Every holder must maintain a current, ANM-approved closure plan addressing rehabilitation, tailings management, social impacts and financial provisioning.

Health and Safety Obligations

Governed jointly by the ANM and Ministry of Labour, covering underground mining, explosives, slope stability and PPE. Accidents must be reported and can trigger suspension.

Community and Social Obligations

Prior consultation obligations apply near indigenous, traditional or quilombola communities under ILO Convention 169; inadequate consultation increasingly grounds judicial challenges.

Deforestation and Land Use

Vegetation clearing in the Atlantic Forest or Amazon biome must comply with the Forest Code; unlicensed clearing is a strict-liability offence with potential criminal exposure for officers.

Compliance cost context. The total regulatory compliance cost for a producing mining operation, covering CFEM, ANM reporting, dam safety, environmental conditions, workforce safety and community relations, is a significant component of operating expenditure. Legal and regulatory counsel should be engaged before any financial model is finalised.

Key sources: Law 14,066/2020 (dam safety); ILO Convention 169 (prior consultation); the Forest Code (Law 12,651/2012); and, on mining licence fees, the TAH overview on LawsofBrazil.

Environmental Licensing

The parallel process that determines whether a mine can operate

Preliminary Licence (Licença Prévia, LP)

Attests to environmental viability and approves the project’s basic concept and location, requiring an EIA/RIMA and public consultation. Rarely takes less than 2 to 3 years for large projects.

Installation Licence (Licença de Instalação, LI)

Authorises construction of mine infrastructure, processing plant and tailings facilities, conditional on fulfilment of LP-stage conditions.

Operating Licence (Licença de Operação, LO)

Authorises commencement of operations once installation conditions are verified. Renewed every 4 to 6 years; a mine cannot lawfully operate without a valid LO.

Federal vs State Licensing

IBAMA handles projects with significant national impact; state agencies handle most mining projects. Choosing the wrong authority can invalidate licences and restart the process.

Indigenous and Traditional Lands

Mining on indigenous lands is prohibited without specific Congressional authorisation. Proximity triggers mandatory consultation and complicates licensing for nearby projects.

Environmental Liability

The Environmental Crimes Law imposes criminal liability on officers regardless of direct participation. Civil liability for damage is strict and uncapped; post-Brumadinho reforms increased penalties.

Foreign Investment Constraints

Restrictions foreign investors most often underestimate

The Brazilian Constitution prohibits foreign companies from holding mining titles directly. All exploration authorisations and mining concessions must be held by a Brazilian-incorporated legal entity. Establishing that entity, registering it with the ANM and ensuring it meets Brazilian corporate governance requirements are prerequisites to any title application.

Beyond the corporate structure requirement, foreign investors face a range of additional considerations that arise at different stages of the project lifecycle. These warrant specific legal advice before any investment decision or commercial arrangement.

!Foreign ownership of rural land (often required for mining access) is subject to area limits and requires INCRA notification under Law 5,709/1971.

!Repatriation of capital and dividends is generally permitted but must be registered with the Central Bank in the RDE-IED system before funds are remitted.

!Intercompany loans from foreign parents attract IOF and must comply with transfer pricing and thin capitalisation rules enforced by Receita Federal.

!ANM title transfers triggered by parent-level changes of control require prior ANM consent; proceeding without it may invalidate the transfer and expose the acquirer to fines.

!Export of mineral commodities may be subject to export tax and CFEM calculated on export revenue, requiring accurate and auditable invoicing.

!Anti-corruption compliance: the Clean Company Act imposes strict liability on companies for acts of corruption by employees or agents, including with licensing authorities.

Disputes and Enforcement

What foreign companies need to know about mining disputes

Federal court jurisdiction

Disputes involving ANM decisions and federal environmental licences fall to the Federal Courts. Challenges must first exhaust the ANM’s internal appeals process.

Environmental civil liability

Strict, joint and several, uncapped. Mariana and Brumadinho produced some of the largest environmental reparation settlements in Brazilian history.

ANM administrative sanctions

Fines, suspension, interdiction and title cancellation are available; fines have increased significantly since 2017 and can apply per violation and per day.

Arbitration for commercial disputes

Joint ventures and offtake contracts routinely include arbitration clauses under the Brazilian Arbitration Act; disputes with the ANM cannot be arbitrated.

Criminal liability for officers

The Environmental Crimes Law and Clean Company Act create personal criminal exposure for directors; preventive detention is possible during investigations.

Due diligence on acquisition

M&A due diligence must cover title status, licence compliance history, dam safety classification, land access, community consultation history and outstanding CFEM debts.

Get advice

Investing in Brazilian mining?

We advise on mining title due diligence and acquisition, ANM applications and compliance, environmental licensing, joint venture structuring and dispute resolution.

This page is a summary only and does not constitute legal advice. Specific advice should be sought before taking any action in relation to Brazilian mining regulation.

Brazilian lawyers for foreign companies, investors and law firms.

Sao Paulo

Rua Quintana, 887/32
Sao Paulo SP 04569-011, Brazil
+55 11 5505 2485
info@deffenti.com

Brisbane

Level 34, 1 Eagle Street
Brisbane QLD 4000, Australia
+61 7 3040 9301
info@deffenti.com

Links

Legal Guides Practice Areas Team Terms of Use