The forfeiture of a mining title is the highest administrative sanction applied by the National Mining Agency (ANM), which results in the extinction of a prospecting or mining right. This penalty is a coercive measure based on legally defined criteria, applicable in situations of serious and repeated non-compliance with the titleholder’s obligations. The authority to declare the forfeiture of granted mining rights lies with the ANM’s Collegiate Board, to ensure the regularity, safety, and rational exploitation of mineral resources. Understanding the causes that lead to this sanction is a vital step in the risk management of any mining venture.
The causes that can lead to forfeiture are varied and reflect the complexity of regulatory obligations. Among the most recurrent are:
- Abandonment of the Mineral Deposit or Mine: The unjustified cessation of activities.
- Non-Compliance with Deadlines: Failure to start or restart prospecting or mining work, even after a warning and fine.
- Work Out of Compliance: The deliberate execution of prospecting or mining work that is not in accordance with the conditions of the authorizing title, despite a warning or fine.
- Ambitious Mining: The continuation of ambitious mining, even after sanctions.
- Unauthorized Extraction: The extraction of a mineral substance not included in the title, despite a warning and fine.
Forfeiture can also be instituted in cases of repeated infractions, characterized by a third fine within a one-year interval. In the context of the granting process, the failure of the titleholder or their successor to file the mining concession application within the legal timeframe after the prospecting license expires is another direct cause.
A category of risk that deserves special attention is ambitious mining, defined as mining conducted without observing the pre-established plan or in a way that makes the subsequent economic exploitation of the mineral deposit impossible. Ambitious mining compromises not only the efficiency of the current operation but also the future potential of the mineral asset, which justifies the seriousness of the sanction.
Another cause of extreme gravity is the occurrence of harm to the population or the environment resulting from mining, beneficiation, or waste disposal activities, including significant environmental degradation, damage to water resources, or property damage due to a mining dam leakage or failure, caused by the entrepreneur’s fault or willful misconduct. In these circumstances, the ANM has the prerogative to initiate an administrative forfeiture process, emphasizing the full responsibility of the entrepreneur to society and the ecosystem.
When a mining right is forfeited, the consequences are severe and long-term:
- Tenement Availability: The area covered by the title is relinquished and declared available by ANM for a new prospecting license or mining concession application.
- Post-Extinction Liability: The titleholder remains obligated to bear the costs of removing equipment and assets, in addition to repairing or compensating for damages resulting from their activities.
- Maintenance of Obligations: The titleholder’s liability for the obligations inherent to the title and its regularity persists, even if the right had been offered as collateral in financing operations.
These obligations demonstrate that the ownership of a mineral right is inseparable from its regular and responsible management.
📷Canva/Edition by ÍGNEABR
