Revitalization of the Brazilian Mining Industry

Transcrição

1 Revitalization of the Brazilian Mining Industry Ministry of Mines and Energy Maria José Gazzi Salum Secretariat of Geology, Mining and Mineral Transformation METS 2018 April, Madrid, Spain

2 Ministry of Mines and Energy Secretariat of Geology, Mining and Mineral Transformation (SGM) Planning and Electric Development Electric Energy Oil, Natual Gas, and Renewable Fuels National Mining Agency (ANM - DNPM) Geological Survey of Brazil (CPRM) Institutions linked to the Minister of Mines and Energy

3 Brazilian Mining Industry Overview Brazil produces about 80 diferente mineral substances. Mineral production value: US$ 27 bilhões. Mineral Export Value: US$ 17,4 bilhões Mineral Trade Balance: US$ 12 bilhões. Aproximately minas in activities. Around workers (factor 1:13 to generate indirect jobs). Participation in nacional GDP: 4% Royalty collections: US$ 600 million *Data for 2017 are in progress.

4 Brazil in the World Scenario of Production and Consumption of Mineral Goods Global Player (Position in the world ranking) Exporter Self-Sufficiency Importer/ Producer External Dependence Niobium (1 ) Tantalum (2 ) Iron Ore (3 ) Bauxite (3 ) Graphite (3 ) Vermiculite (3 ) Kaolin (5º) Dimension Stones Magnesite Mica Vermiculite Tin Nickel Manganese Rough diamond Limestone (cement) Chrome Industrial Diamond Titaniun Gold Talc Nickel Tungstein Phosphate Copper Zinc Diatomite Tungustenium Potassium Sulfur Metallurgical Coal Rare Earth

5 CHALLENGES FOR GROWTH RESUME

6 A NEW AGENDA FOR THE BRAZILIAN MINERAL SECTOR

7 REVITALIZATION OF THE BRAZILIAN MINING SECTOR Aiming at approving actions in order to revitalize the Brazilian mining sector, three provisional measures (proposal to be transformed into laws) weresubmitted to Brazilian Congress in order to be approved: MPV No 789/2017 Changing the legislation that deals with Financial Compensation for the Exploration of Mineral Resources (CFEM royalties). It was already approved by the Brazilian Congress. Converted into Law 13,540 /Dec MPV No 791/2017 Creating the National Mining Agency. It was already approved by the Brazilian Congress. Converted into Law 13,575 / Dec

8 Financial Compensation for the Exploration of Mineral Resources CFEM (Royalties) Modification in the current legislation dealing with CFEM Main Changes: Basis of calculation: Gross sales revenue, as expressed in invoice; less sales taxes; simplifying the tax collection. Reflect the value of the good when transacted under market conditions (reference price).

9 Creation of the ANM by Proposal, and consequent extinction of the Bureau of Mines (DNPM) The subject has been analyzed and debated in the government for almost two decades, without solution. This time, all stakeholders, including the private enterprises have approved that change.

10 MODERNIZATION OF THE MINING CODE REGULATION Despite the efforts made, the MP that modernizes the Mining Code was not voted by the Plenary of the Chamber of Deputies. In view of the framework, and in order to improve existing legislation, one of the paths under discussion is the drafting of a Decree that will regulate the Mining Code. The Decree in force dates from 1968 and after its creation in 1967 the Code has undergone changes that were not regulated, the last one being in 1996.

11 NEW REGULATION OF THE MINING CODE Main Proposals PROPOSTA DO EXECUTIVO Mineral Exploration Areas in Availability Environment Admission of successive extension of the license, when there is an impediment to access to the area or delays in obtaining an environmental license by the competent body. Continuity possibility of the research works after the presentation of the Final Report, for the conversion of resources into reserves. Admission of successive extension of the license, when there is an impediment to access to the area or delays in obtaining an environmental license by the competent body. Continuity possibility of the exploration works after the presentation of the Final Report, for the conversion of resources into reserves. Responsibility of the miner for the recovery of degraded areas. The miner's obligation to comply with the National Security Policy Dams. Obligation to properly execute the Mine Closure Plan.

12 NEW REGULATION OF THE MINING CODE MAIN PROPOSALS PROPOSAL Concession of mining as guarantee of financing Adequacy of the international concept of resources and reserves Incentive to the use of tailings Possibility of using the mining rights (concession) as a guarantee of financing Adequacy of the international concept of resources and reserves ANM will regulate the reuse of tailings and sterile.

13 AREAS TO BE AVAILABLE Promoting market access to Geological Survey s areas where processes are not in progress (more than 20,000 areas), and the respective assets will be available for sale under electronic auction process. Areas will be valued by including Geological Survey data. Areas will be selected / valued according to the geological potential. Areas will be offered at an electronic auction, with geological information. Online process of evaluating proposals / definition of winner. Greater speed and transparency

14 MINING DAM Implementation of the Mining Management Information System SIGBM

15 INVESTMENT PARTNERSHIP PROGRAM The Investment Partnerships Program - PPI was recently created by the Brazilian Government with the objective of strengthening the partnerships between the State and private enterprise. Within the scope of the mineral sector, four blocks of areas currently held by the Geological Survey of Brazil will be offered, where exploration permits with final reports has already approved. Fosfato do Miriri (Pernambuco e Paraíba states) Cobre, Chumbo e Zindo de Palmeirópólis (Tocantins state) Cobre de Bom Jardim de Goiás (Goiás state) Carvão de Candiota (Rio Grande do Sul state)

16 THE FUTURE OF MINING

17 Thank you Gracias!! Muito obrigado!