On 29 December 2022, Law 14,514/2022 came into force. In addition to allowing private companies to undertake uranium mining activities (see here), the Law brings welcome changes to Brazil’s mining rules.
Extension of exploration licences
The term of mining exploration licences has been increased from three to four years, with one automatic four-year extension. Additional extensions may be allowed where the regulations allow for this.
More flexible requirements for granting security interests over tenements
The new Law removes the strict requirements for grating security interests over mining tenements. While using tenement rights as collateral has been possible since the Mining Code came into force in 1967, the regulations were loose (often too risky for financiers) and the ANM (and its predecessor) interpreted the provision as only allowing for security rights to be granted over extraction licences.
Under the new Law, various rights over tenements can be more easily given as collateral. A new article was added to the Mining Code expanding the right to use any mining rights as collateral and for them to be registered by the ANM.
Possible waiver of the obligation to file exploration report
In “exceptional circumstances”, the requirement to file an exploration report may be waived by the ANM where holders opt to relinquish their tenements.
No need to prove funding for obtaining exploration licence
A key requirement for applying for an exploration licence has been removed – instead of having to prove that the funding was in place for carrying out exploration of the area, applicants now merely will need to declare that they have funding available or commit to “searching the necessary financing for the execution of the economic use plan and the operation of the mine”.
Last modified: January 5, 2023