According to the Mining Code (Decree-Law No. 227/1967) and its regulation (Decree No. 9,406/2018), the request for a mining concession is an essential step after the approval of the Geological Exploration Report by the National Mining Agency (ANM). This request formalizes the holder’s intention to commercially exploit the researched deposit.
Deadline to Request the Concession
The holder of the research authorization has a period of 1 year, counted from the approval of the Geological Exploration Report, to submit the mining concession request. This period may be extended for an equal period, at the discretion of the ANM, upon a justified request from the holder. It is important to note that, while the decision on the deadline extension request is pending, the mining right remains valid, and the holder may continue to develop their studies and projects.
Required Documentation
The mining concession request must be accompanied by several documents and information, including:
- Applicant’s Data: Registration certificate of the constituted entity and information about the holder of the mining right (Brazilian, company constituted under Brazilian laws and with headquarters and administration in the Country or cooperative).
- Designation of the Substance: Indication of the mineral substances to be mined and the granted Research Permit.
- Location of the Area: Detailed and precise description of the location of the area intended for mining.
- Graphic Definition of the Area: Plan with a geometric definition of the intended area.
- Easements: Information on easements required for the operation of the mine.
- Feasibility Study: A detailed document describing how the deposit will be exploited.
The Importance of the Feasibility Study
The Feasibility Study, also known as the Economic Use Plan, is an essential and mandatory component of the mining concession request. This plan must demonstrate the technical and economic feasibility of exploiting the deposit. It must include:
- Explanatory Memorandum: An overview of the project and its timeline.
- Mining Method: Details on the mining method to be adopted and the expected production scale.
- Infrastructure: Projects or preliminary projects for facilities and equipment such as lighting, ventilation, transportation, processing and safety measures (for underground mines), mineral transportation, energy, water supply and air conditioning facilities.
- Work Conditions: Information about mine hygiene, work safety and living conditions for workers.
- Tailings Dams: Tailings dam projects, when applicable, including an Emergency Action Plan.
Analysis by the ANM
The ANM will analyze the mining concession request and the Feasibility Study to verify:
- The technical viability of the project.
- The economic sustainability of the exploitation.
- Compliance with safety standards.
- The adequacy of the environmental recovery plans.
Consequences of Non-Submission or Non-Approval of the Plan
If the holder fails to submit the mining concession request or does not have the economic use plan approved within the stipulated deadline, their right to the deposit will lapse, and the area may be declared available for new requests.
The mining request and the presentation of the Feasibility Study are crucial steps for the consolidation of the mining right, representing a significant step forward in the journey of a mining project. It is essential for mineral research holders to carefully plan this phase, paying attention to legal and technical requirements to ensure the success of the operation.
