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Rapporteur proposes changes to the Mining Code; draft will be voted on next Wednesday

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Voting on the draft was scheduled for Wednesday (7), at 2 pm (Image: Marcello Casal Jr/ Agência Brasil)

The rapporteur of the working group of the Mining Codecongressperson Joaquim Passarinho (PL-PA)🇧🇷 presented to the board, this Wednesday (30), the text of the draft that updates the current legislation.

Among other changes, the proposal expands the concept of prospecting, prevents the successive extension of authorizations for mineral research and makes the miner responsible for the environmental recovery of the impacted areas.

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Coordinator of the collegiate, deputy Filipe Barros (PL-PR) accepted the rapporteur’s suggestion and defined that improvements to the draft can be presented until Monday (5), at 12h.

Voting on the draft was scheduled for Wednesday (7), at 2 pm.

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Based on the text of the rapporteur of the 2021 working group, deputy Greyce Elias (Avante-MG), Passarinho said that he sought to provide more agility to the mining process in the country without compromising the effectiveness of the authorization and licensing processes for enterprises.

“The cost of bureaucracy in the mineral sector is very high and interferes directly with the competitiveness of Brazilian products in the foreign market”, says the report presented by Passarinho. “We propose to prioritize procedural dynamism without neglecting the necessary methodological rigor to assess mining titles”, completes the document.

Changes

One of the main changes compared to 2021 is the withdrawal of devices that provide for tacit approval of procedures (mining concession, extraction registration, prospector mining permission – PLG, licensing) if the National Mining Agency (ANM) do not process the order within one year.

Passarinho stated that the idea of ​​tacit approval stems from the delay in analyzing processes by the ANM, in some cases for up to ten years.

According to him, the draft refers to a resolution of the agency itself that currently already establishes deadlines for the processing of mineral title processes (Resolution 22/20).

Joaquim Passarinho
Passarinho stated that the idea of ​​tacit approval stems from the delay in analyzing processes by the ANM, in some cases for up to ten years (Image: Paulo Sergio / Chamber of Deputies)

“We are making it mandatory for the agency to have this regulation of deadlines, instead of providing for tacit approval”, he said.

Environment

Another excerpt excluded from the previous report is the one that required extensive discussion with the mining sector (federal government, ANM and miners) in processes for creating conservation units, tipping and other demarcations that could limit mining activity.

“We are talking here about environment. So, if I am going to create an environmental preservation area, logically, I should listen to all the actors, but I cannot put an obligation for the environmental sector in the Mining Code”, pondered the rapporteur.

Also left out of the new text was the part that redefined concepts related to the mineral sector. In Passarinho’s evaluation, these concepts should be established in regulation in order to better follow the evolution of the sector.

Authorizations

The other improvements suggested by the general rapporteur of the 2021 working group were maintained, including the one that transfers to the ANM the current competence of the Ministry of Mines and Energy (MME) for the issuance of the mining ordinance, remaining as an exception minerals considered as strategic, whose mining will continue to be granted by the MME.

prospecting

The preliminary project proposed by Passarinho expands the concept of prospecting, establishing that the exploration activities of primary deposits and deposits are independent of the technique used and the scale of production.

According to him, the pan – a rudimentary prospecting tool – has long ceased to be the only tool used, being supplemented by extensive machinery responsible for a significant increase in production capacity.

extensions

In relation to terms and conditions for the authorization of research and mining concession, the draft prevents successive extensions to the holder of the mining right. The objective, according to the rapporteur, is to prevent the deposit from becoming unproductive, for speculative purposes, without adding anything to mineral production.

“We ended up with large companies stocking areas and without any production. The new text foresees the licensing for three years, extendable for just one more period”, said Joaquim Passarinho.

Social Auction

Another innovation in the draft is the social auction, an exclusive modality for the mining permission regime. This modality provides that areas placed on public offer, considering the national interest and social and environmental reasons, may be reserved exclusively for granting PLG.

In the rounds of social auctions, at the discretion of the ANM, priority for mining cooperatives may also be included as a judgment criterion.

Other ores

The text also allows the mining permit holder who finds, during his mining work, some mineral substance considered not to be minable, to amend his title to include it through a simplified process, instead of requiring a new process.

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Source: Moneytimes

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