The mining research authorization regime in Brazil is a legal mechanism that allows individuals or legal entities, nationals, to carry out studies and surveys to identify and assess the potential of mineral deposits. This regime is regulated by the Mining Code (Decree-Law No. 227/1967), with subsequent amendments, and is an essential step for the development of mining activity in the country.
How does the research authorization work?
- Application: The process begins with an application to the National Department of Mineral Production (DNPM), which is now part of the National Mining Agency (ANM). This request must include detailed information about the applicant, the mineral substance to be researched, the intended area, a work plan, schedule and budget for the studies, and proof of payment of emoluments.
- Analysis and Approval: The DNPM analyzes the application to verify the availability of the area and the feasibility of the project. After approval, the agency issues a Research Authorization Permit, which grants the holder the right to carry out studies in the delimited area.
- Execution of Research: The holder must carry out the research work, such as geological, geophysical, and geochemical surveys, drilling and laboratory analysis. The work must be carried out under the supervision of a qualified professional (mining engineer or geologist).
- Research Report: After completing the research work, the holder must submit a detailed report to the DNPM, with the results obtained, conclusions about the deposit, and the assessment of the economic feasibility of mining.
- Decision: The DNPM analyzes the report and decides on its approval. If approved and if the holder has an interest, they can request a mining concession.
Main points of the authorization regime
- Priority: The first applicant has priority over other interested parties in the same area.
- Validity: The Research Authorization Permit is valid for up to 4 years, which can be extended once, if justified.
- Fees: The holder is subject to the payment of initial emoluments and an annual fee per hectare.
- Obligations: The holder has obligations such as starting work within the deadline, not interrupting studies for an excessive amount of time, and submitting work reports to the DNPM.
- Rights: The research authorization grants the holder the right to carry out studies and access the area, subject to compensation to the owner or possessor.
Importance of the regime
The research authorization regime is fundamental for the mineral sector, as it encourages the discovery and evaluation of new deposits, essential for the country’s development. In addition, the authorization process establishes clear rules for the activity, guaranteeing the rational and sustainable exploitation of mineral resources.
If you are involved in the mining sector, whether as an investor, professional or landowner, it is essential to know your rights and obligations within the research authorization regime.
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