New Mining Areas Added by Government to Be Auctioned

Written by Roberta Souza

Published on 29/04/2021 at 13:50

Área de mineração/ Fonte: Usiminas

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The Brazilian Government Included in the PPI – Investment Partnership Program – New Mining Areas to Be Auctioned

On the 26th, the Government qualified three more mining areas in the PPI – Investment Partnership Program. These projects included in the PPI will be conducted in areas auctioned in 2021 and 2022, during which the government plans to hold seven auction rounds.

The Mining Areas Included in the PPI by the Government

The ANM – National Mining Agency – had over 40,000 mining areas available for exploration until last year. Such projects had already been granted, but remained with the ANM due to withdrawal or some nullity of the mining title.

The mining areas added by the Government will undergo a “procedure of availability,” so that they can be offered for the private initiative. However, this procedure was considered inefficient and bureaucratic, resulting in the stagnation of thousands of mining projects at the National Mining Agency.

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The New Regulation of the Mining Code

According to the “New Regulation of the Mining Code,” in the Decree No. 9,406/2018, several parameters are fundamental for the development of mining: national interest and public utility.

After this regulatory milestone imposed by the Government, the MME – Ministry of Mines and Energy – observed significant potential to be explored in partnership with the private initiative, recognizing the high sectoral and national relevance of these mining areas, as well as the attractiveness of the projects for private investments.

Decree No. 10,389/2020 qualified mining ventures that were auctioned by the ANM last year in the PPI – Investment Partnership Program – of the Presidency of the Republic.

Inclusion of Projects by the Government

In 2020, the government had already included the ventures auctioned by the National Mining Agency in the PPI. In a statement, it was said that the success achieved by measures taken in 2020 led the PPI Council to recommend its renewal for the next two years, during which more seven auction rounds are projected.

The Secretary-General of the Presidency of the Republic states that, in the future, all mining areas of the National Mining Agency could be put on the market so that these research ventures can be adequately explored by the private initiative, following the steps of the decree.

The Mineral Sector Should Receive Investments of US$ 33 Billion Between 2021 and 2025 in Brazil

According to data from Ibram – Brazilian Institute of Mining – Brazil could receive, between 2021 and 2025, investments in the range of US$ 38 billion. The states of Bahia, Minas Gerais and Pará will receive the largest portion of these investments, at 35%, 28%, and 23%, respectively.

The total investment in the mining sector will be divided among the 81 cities in Bahia, Minas Gerais, Pará, and the rest of Brazil, across 92 different projects, according to a survey by the Brazilian Institute of Mining. The state of Bahia will share the total investment among 28 municipalities, Minas Gerais among 11 cities, and Pará among 13 municipalities.

New Mining Areas Added by Government to Be Auctioned

The Brazilian Government Included in the PPI – Investment Partnership Program – New Mining Areas to Be Auctioned

The Mining Areas Included in the PPI by the Government

The New Regulation of the Mining Code

Inclusion of Projects by the Government

The Mineral Sector Should Receive Investments of US$ 33 Billion Between 2021 and 2025 in Brazil

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New Mining Areas Added by Government to Be Auctioned

The Brazilian Government Included in the PPI – Investment Partnership Program – New Mining Areas to Be Auctioned

The Mining Areas Included in the PPI by the Government

The New Regulation of the Mining Code

Inclusion of Projects by the Government

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