Main Authorization Title for Mineral Mining
What is it?
The Mining Concession or Mining Title is a mineral title obtained after the approval of the Final Research Report and the execution of the Mineral Mining Request.
According to the Decree Law No. 227 of 28/02/1967 – Mining Code, mining is understood as the set of coordinated operations that aim at the industrial exploitation of the deposit, from the extraction of useful mineral substances it contains to their processing.
Starting from a conjecture where the deposit is researched, with the approved report, according to Art. 30 of Decree No. 9406 of June 12, 2018 – Regulation of the Mining Code, the application for the concession of mining to be formulated by individual entrepreneur, cooperative or company incorporated under the Brazilian laws and with headquarters and administration in the country, shall be addressed to the Minister of Mines and Energy, duly instructed with the elements of information and evidence provided by law.
The application must be accompanied by the environmental license or the protocol for opening the licensing process, and the holder must submit to the ANM, every six months, proof that the environmental licensing procedure is in progress, and that the applicant has taken the necessary steps to obtain the environmental license, exempting the Agency from the obligation to issue requirements in relation to this.
The mining application must be accompanied by the following documents:
- Certificate of registration with the National Department of Trade Registration, of the incorporated entity (currently the Department of Business Registration and Integration);
- Designation of the mineral substances to be mined, with indication of the Research Permit granted, and approval of the respective Report;
- Denomination and description of the location of the field intended for mining, relating it, with precision and clarity, to river valleys or streams, contained in maps or plants of notorious authenticity and precision, and railroads and highways, or yet, to natural landmarks or topographical accidents of unmistakable determination; its confrontations with research authorizations and neighboring mining concessions, if any, and indication of District, Municipality, County and State, and yet, name and residence of the soil owners or possessors;
- Graphic definition of the intended area, delimited by a geometric figure formed, obligatorily, by segments of straight lines with true North-South and East-West orientation, with 2 (two) of its vertexes, or exceptionally 1 (one), tied to a fixed and unmistakable point of the land, being the vectors of tying defined by their true lengths and directions, and configured, yet, the territorial properties interested by it, with the names of the respective superficiaries, besides a situation plant;
- Servitudes that the mine must enjoy;
- Plan for economic use of the deposit – PAE, describing the processing facilities;
- Proof of the availability of funds or the existence of financing commitments, necessary for the execution of the economic utilization plan and operation of the mine.
The Economic Exploitation Plan
The economic exploitation plan is a mandatory document for the mining concession application and must contain, in addition to the documents and information required by art. 39 of Decree-Law 227 of 1967 – Mining Code, a description of the processing facilities, indicators relating to reserves and production and a mine closure plan, under the terms established by ANM Resolution.
The PAE must include, obligatorily
- Explanatory Memorial;
- Rescue and Salvage Plan in accordance with the Mining Regulatory Standards – NRM;
- Plan for Control of Environmental Impacts in Mining according to the Mining Regulatory Norms;
- Mine Closure Plan in accordance with NRM.
- Installation License by CPRH – State Agency for the Environment and Water Resources (CONAMA Resolution 09/90).
- Projects or preliminary projects referring to:
- Definition of the mining method to be adopted, making reference to the scale of production initially planned and its projection;
- Illumination, ventilation, transportation, signaling, and work safety, when it is underground mining;
- Surface transportation and ore beneficiation and agglomeration;
- Power installations, water supply and air conditioning;
- Hygiene of the mine and its works;
- Housing and its habitability conditions for all those who reside in the mining site;
- Collection and protection facilities.
Economic Evaluation
Based on the studies of production capacity and marketing aspects, the projection of the enterprise’s cash flow for subsequent years should be presented, as of the implementation of the project, based on a suitable period of time that shows the financial reach in relation to the dimensioning of production, investments, production costs, depreciation of equipment, tax calculation, profitability, profit margin of the enterprise, and rate of return.
Mine Closure Plan (PFM)
This plan aims to define administrative and operational procedures in case of mine closure, suspension and resumption of mining operations. The term mine closure means the definitive or temporary cessation of mining operations.
Rescue and Salvage Plan
The objective of this procedure is to define the guidelines, sequence, and content of the Local Emergency Plan – PEL, in order to prepare employees to meet potential emergency situations, preventing or mitigating the impacts to the Environment, Health and Safety of its employees, respecting the technical standards in force.
Risk Management Plan
This Program has the character of preserving the health of the company’s employees, through the recognition, evaluation, and consequently, the control of the occurrence of existing or future risks, considering the protection of the environment and natural resources. Its elaboration and implementation is planned based on the risks to the workers’ health and other Regulatory Norms, where the preventive actions to be taken are foreseen.
After the analysis of all the documents and projects presented, the PAE is declared apt and goes to the Ministry of Mines and Energy, where the mining application must be approved and the mining concession issued.
