The National Mining Agency (ANM) participated in the Conference on the Future of Natural Resource Taxation in Latin America and the Caribbean, organized by the Inter-American Development Bank (IDB) and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). The event took place between September 30th and October 2nd in Lima, Peru, bringing together regional leaders and experts to discuss fiscal challenges and opportunities in the mineral sector.
Over three days, the meeting facilitated discussions on essential topics such as financial benefit sharing, contract negotiation, and the management of tax revenues generated by mining. The event also addressed the environmental impacts and social implications of extractive activities, reflecting the growing global concern for sustainability in the sector.
Representing the ANM, Director-General Mauro Sousa highlighted the Brazilian mineral revenue collection model, focusing on the Financial Compensation for Mineral Exploration (CFEM). CFEM, established in the 1988 Federal Constitution, is a compensation due to states, municipalities, and the Union for the exploration of mineral resources in their respective territories. Currently, CFEM benefits over 5,000 Brazilian municipalities, with an average annual collection of R$ 7 billion and expectations for growth.
Sousa drew attention to the need for greater transparency in the management of resources generated by CFEM. He pointed out that despite the importance of these funds, there are still challenges regarding the disclosure of detailed data on revenue collection and resource allocation in states and municipalities. “We need to move forward with the provision of information, not only about CFEM distribution but also about how the funds are being used. The community and city governments must have clarity about the duration of mining operations, the long-term economic impacts, and projected royalties,” he stated.
Furthermore, Sousa advocated for a more proactive stance on the part of mining companies. He emphasized the importance of projects that involve local communities, providing information about the exploration time, potential mineral processing, and future economic impact. According to the director, this transparency is crucial to ensure that mining resources are used efficiently and result in improvements for the population.
The ANM’s participation in the event reinforces Brazil’s commitment to aligning its mineral management practices with international best practices, seeking a fairer, more sustainable, and beneficial mining sector for all.
