A negative Final Exploration Report (RFP) is not a sign of failure. Even when an exploration doesn’t find an economically viable ore body, submitting this document is mandatory and can be the smartest decision for your project’s future. The central issue isn’t whether the exploration was successful, but whether you fulfilled your responsibility to the National Mining Agency (ANM).
The distinction between a positive and a negative RFP is fundamental to the mining process. If the exploration identifies a deposit with economic potential, the miner must prove this in a positive RFP, detailing the geological data and the viability of extraction. This is the path to a mining license. A negative RFP, on the other hand, technically justifies the cessation of work by explaining the reasons for the deposit’s economic unviability.
What Happens If You Don’t Submit the RFP?
The deadline for submitting the RFP is the expiration of the exploration permit, as per Law No. 14,514/2022. Failure to submit the RFP, or submitting it past the deadline, is an infraction that can result in fines and the lapse of the mining right. The fine is calculated based on the area of the mining tenement and can lead to the loss of all investment made in the exploration.
Negative RFP: How Does the ANM Act?
The ANM can make several decisions when analyzing a negative RFP. The agency can choose to file the report, if the lack of an economically viable deposit is proven, making the area available for a new request. It’s important to note that the ANM typically files negative RFPs, because an area considered unviable today might become viable in the future due to new technologies or changes in commodity prices.
Another possibility is the adjournment of the report when the technical and economic viability of mining is temporarily impossible. In these cases, the ANM sets a deadline for you to present a new viability study, under penalty of the report being filed.
Compliance with the obligation to submit the RFP, whether it’s positive or negative, is the basis for your project’s continuation or its regular finalization, avoiding penalties and protecting the investment already made.
📷Canva/Edition by ÍGNEABR
