Industry Insights: The Burden of Bureaucracy
Mining gets lost in a regulatory maze
“We consider the change in the regulatory framework in 2017 to be very positive. The transition from the DNPM to the ANM was the right one, as more regulations were put in place to ensure the safety of the people working in mining and the surrounding communities. Due to the rapid pace of the reform process, not all actors in the sector have been able to adapt to the changes well.”
Liliam Fernanda Yoshikawa, Mining Partner, Machado Meyer Advogados
“The previous administration had to implement the ‘pro-strategic minerals policy’ aimed at improving coordination among various agencies, both at federal and state levels, that get involved in permitting a mining project. The difficulties arising from inconsistent interpretations and enforcement of regulations particularly impact companies during the permitting stage.”
Adriano Drummond Trindade, Mining Partner, Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados
“The ANM is still facing difficulties with budget and personnel. For example, ANM’s public servants were on strike for more than a month this year, fighting for better salaries, working conditions, and more hirings. Once the ANM is properly installed by the Federal Government, the Agency will be able to enact the rules and regulations the sector demands and reduce the time needed for the granting of mineral rights, both of which would foster junior companies’ access to capital.”
Marcelo Mendo, Partner and Head of the Mining Practice,, Cescon, Barrieu, Flesch & Barreto Advogados
“The major challenge in Brazil is not only attaining a mining license from the federal government, but rather an environmental license which has to be issued by the federal government, the state, as well as the municipality. The ANM needs to develop more in terms of human resources and technology to process the approximately 100,000 applications that are awaiting approval.”
Frederico Bedran Oliveira, Mining Partner, Caputo, Bastos e Serra Advogados
