Putting the crowbar to a recent post related to mining licences...

Putting the crowbar to a recent post related to mining licences to dispel the lingering bad taste: the possibility of any unlikely potential problem does not make for good investment advice.

Brasil has chosen to be wholly agreeable to more mining with less restrictions on mining and exploration licence applications and activities.

On 29 December 2022, a new mining law (14,514/2022) came into force with some very open and welcomed changes.

For instance, one key requirement for applying for an exploration licence has been removed recently.

Instead of having to prove that the funding was in place for carrying out exploration of the area, applicants now merely will need to declare that they have funding available or commit to “searching the necessary financing for the execution of the economic use plan and the operation of the mine”.

Another welcomed change: the term of mining exploration licences has been increased from three to four years, with one automatic four-year extension.

Also under the new Law, various rights over tenements can be more easily given as collateral.

The mining concessions may be granted to companies or individuals in relation to specific types of mineral deposits in the concession area, being valid until total depletion of such mineral deposits. The mineralised clays that were/are currently being mined fall into this category.

The previous titleholders of the project are Togni S/A Materiais Refratários, a family led private company that have been mining the clay deposits in the Poços de Caldas area for 112 years who are very established and who have strong connections to the local government mining and environmental bodies, due to their long history of development in the area, making them ideal business partners.

As to the precise nature of the resources being explored the titleholders simply have to:

• inform and notify the Agência Nacional de Mineração (ANM) of any discoveries of ores not included in the titleholder’s authorisation

Should the concessionaire find any other types of mineral in the concession area it is required to notify the Agência Nacional de Mineração (ANM) of such finding and, upon its request to the DNPM, may include the other mining rights in its mining concession. That is a very simple process.

There is no requirement to obtain a specific REE mine license, and the what-if scares about governments are wholly unsupported.

For new mining concessions in exploration areas, that is also a relatively simple process.

The creation of the National Mining Agency (ANM) as the mining authority in Brazil has been a positive for the mining sector, bringing technical scrutiny and transparency to mining regulation and supervision, and de-risking mining operations in Brasil.

Holders need to hold some caution that individuals may have fears and insecurities that are often presented as facts, when the reality of fact-checking proves otherwise. Solid de-risking takes accurate and intensive research, so feel free to check everyone’s commentary including mine.

All positive!

PS Good luck with the renovations …

cheers,

Ice