Decree No. 9,406 / 2018, which acts as the regulatory backbone of the Mining Code, establishes a clear and detailed procedure for extending the mineral exploration permit. This document is essential for the legality and continuity of exploration operations, allowing companies and individuals to conduct in-depth studies to determine the economic viability of a deposit. The extension becomes imperative when the originally granted period proves insufficient for the completion of the research work.
The Extension Request: Critical Steps and Requirements
The extension request must be formalized with the National Mining Agency (ANM), the sector’s regulatory body, at least 60 days before the expiration of the current permit. It is crucial to emphasize that failure to comply with this deadline may result in the loss of the priority right over the area, a valuable asset in the context of mining.
The core of the request lies in two main documents:
- Detailed Report of Work Carried Out: This document must provide a thorough and comprehensive description of all research activities carried out during the permit’s validity. This includes, but is not limited to:
- Surface Geological Surveys: Detailed mapping of rock formations, geological structures, and mineral occurrences.
- Geophysical Surveys: Use of methods such as magnetometry, electroresistivity, and seismics to investigate subsurface characteristics.
- Geochemical Surveys: Collection and analysis of soil, rock, and water samples to identify chemical anomalies associated with mineralization.
- Opening of Trenches and Research Wells: Excavations for direct exposure of the mineralized body and collection of representative samples.
- Drilling: Drilling for subsurface sampling in depth, with detailed description of the cores (cylindrical rock samples).
- Laboratory Analyses: Chemical and physical analyses of the collected samples to determine grades, mineralogical composition, and other relevant properties.
- Beneficiation Tests: Tests to determine the feasibility of processing the ore and obtaining concentrates.
- Resource and Reserve Estimates: Calculation of the volume and grade of the ore, based on the data obtained, using internationally recognized methodologies.
- Robust Technical Justification for the Additional Term: This document must present solid and technically supported arguments that justify the need to extend the research period. It must include:
- Detailed and Revised Schedule: An updated work plan, with the activities to be carried out in the additional period, their deadlines, and necessary resources.
- Justifications for Any Delays: Clear and objective explanation for any delays that occurred, such as unexpected geological complexity, difficulties in accessing the area, environmental or land issues, or other incidents.
- Proposed Additional Term: Precise indication of the additional time needed to complete the research, which cannot, under any circumstances, exceed the original term of the permit.
In addition to these documents, the payment of fees, which are administrative fees related to registration acts, is mandatory.
Thorough Analysis by ANM
ANM will carry out a rigorous and multifaceted analysis of the request, taking into account several aspects:
- Quality and Scope of Studies: Assessment of the depth, accuracy, and reliability of the data and information presented in the report.
- Particularities of the Area: Consideration of the specific characteristics of the area, such as geographic location, type of ore, geological conditions, environmental and social aspects.
- Consistency of the Technical Justification: Verification of the logic, coherence, and foundation of the arguments presented for the additional term.
- Contiguous or Nearby Areas: In cases of multiple authorizations in adjacent areas, the analysis may be carried out in an integrated manner.
Impediments, Requirements and Default
- Impediments: If access to the area has been denied or difficult, or if there is a delay in obtaining environmental licenses or other authorizations, the holder must provide supporting documentation that:
- He strictly complied with all legal requirements and notifications from the competent bodies.
- He did not contribute, by action or omission, to the occurrence of the impediment or delay.
- Requirements: ANM may, at its discretion, request additional information or documents to complete the analysis. The holder has a determined period to meet the requirements, under penalty of rejection of the request.
- Default: The existence of pending debts, such as the Annual Fee per Hectare (TAH), may lead to the summary rejection of the extension.
After the complete analysis, ANM will issue a decision, which may be to grant (approve) or reject (deny) the request. In case of rejection, the holder has the right to submit a reconsideration request, based on the Mining Code, seeking to reverse the decision.
Strategic Recommendations
- Strategic Planning: Organize in advance, gathering all the necessary documentation and preparing the reports and justifications with the utmost technical rigor.
- Specialized Technical Assistance: Hire qualified professionals (geologists, mining engineers, environmental consultants) to ensure the quality and accuracy of the work and documents.
- Proactive Monitoring: Closely monitor the progress of the process with ANM, promptly responding to any notifications or requirements.
Following this exhaustive guide will significantly increase the chances of success in obtaining the extension of the mineral exploration permit, ensuring the continuity of exploration work in a legal and safe manner.
