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Brazil is one of the world¡¯s top five mineral-producing countries, extracting and exporting more than 90 types of minerals. The mining sector holds a significant position in the national economy and its iron ore, bauxite and gold have a particularly substantial impact on international markets. To balance resource development, environmental protection and social responsibility, Brazil has gradually established a comprehensive regulatory framework for the mineral industry. This article outlines the main regulatory structure and legal regime governing Brazil¡¯s mineral sector, providing a preliminary reference for enterprises considering investment in Brazilian mining.

Legal framework

The exploration and extraction of mineral resources in Brazil are primarily governed by article 176 of the Constitution of the Federative Republic of Brazil, the Brazilian Mining Code, and its implementing regulations. In addition, sector-specific laws such as Law No. 7990/1989, Law No. 8001/1990 and Law No. 13540/2017, as well as various administrative regulations and technical standards issued by the National Mining Agency (ANM), apply.

Main regulatory agencies

The regulation of Brazil¡¯s mineral industry is mainly undertaken by two agencies: the Ministry of Mines and Energy (MME) and the ANM, which have complementary roles.

The MME is a federal public administration body responsible for formulating national policies, industry planning and standards in geology, mineral exploration and development, and mineral processing. It approves certain mining rights applications, promotes the adoption and development of new technologies, and participates in international mining affairs. The Secretariat of Geology, Mining and Mineral Transformation, under the MME, is responsible for implementing these policies.

Established under Law No. 13575/2017, the ANM is a federal public agency with special autonomous status, linked to the MME, and replaces the former National Department of Mineral Production. Its main responsibilities include approving and supervising mining rights, issuing regulatory rules, monitoring compliance of mining activities, managing resource development, and co-ordinating nationwide mineral exploration and development. The ANM has substantive authority over mining rights applications, supervision, compliance inspections and mine closure management.

Foreign investment requirements

According to article 176 of the constitution, mineral resources are owned by the state, and any exploration or development activity requires authorisation from the competent federal authority. The Mining Code stipulates that mining rights may be granted to ¡°Brazilian individuals¡± or ¡°Brazilian entities¡±, meaning legal persons incorporated and headquartered in Brazil, regardless of the origin of their capital.

Constitutional Amendment No. 6 of 1995 abolished the legal distinction between domestic and foreign capital, allowing foreign companies to apply for mining rights if they establish a qualified local entity in Brazil.

In practice, foreign enterprises typically enter the Brazilian mining market by acquiring local companies that already hold mining rights. While there are generally no substantive barriers to foreign investment in the mining sector, restrictions apply to projects involving border areas (within 150 kilometres of the national boundary) or rural land ownership. In some cases, foreign investment participation is prohibited.

Main authorisations and permits

Article 2 of the Mining Code provides for four basic types of mining rights, applicable to different types and scales of mineral development: The authorisation and concession regime; the licensing regime; the small-scale mining permit regime; and the monopoly regime. The authorisation and concession regime applies to most minerals and is the most common system, covering the full lifecycle of exploration, development and closure, and is divided into three stages:

1. 1. Exploration stage. Exploration permits are used to determine the geological characteristics and economic viability of mineral deposits. Mining activities are generally not permitted at this stage. Under ANM regulations, exploration permits are valid for up to four years, with a one-time extension possible for justified reasons. Permit holders must: commence exploration within 60 days of permit issuance; not suspend operations for more than three consecutive months or a total of 120 days without approval; report any minerals discovered outside the permit area to the ANM immediately; and pay an annual fee based on the permit area until submission of the final exploration report. The final report must comprehensively reflect the geological conditions of the deposit, and is a prerequisite for progressing to the mining stage.
   2. Mining stage. Upon approval of the final exploration report, the holder must apply for a mining concession within one year, or the area will be opened to third-party applications. Once approved, the holder must: commence mining activities specified in the Economic Development Plan (PAE) within six months of the concession announcement; strictly operate in accordance with the ANM-approved PAE, with violations subject to warnings, fines or revocation of the concession; limit extraction to minerals specified in the concession; report any new minerals discovered to the ANM and apply for a permit amendment; not suspend mining operations without ANM approval; and submit an annual activity report to the ANM by 15 March each year.
   3. Mine closure stage: Under Decree No. 9406/2018 and ANM Resolution No. 68/2021, mining projects must prepare a Mine Closure Plan at the end of operations and submit it for ANM approval. The plan must address environmental restoration, social responsibility, infrastructure removal and post-closure monitoring, and must be updated every five years or whenever the PAE is amended. Mines may not be closed without approval.

Brazil possesses abundant mineral reserves, with many potential mining areas yet to be developed. The sector is entering a new phase of growth. For Chinese enterprises, Brazil is not only a key supplier of raw materials but also a strategic platform for resource co-operation.

Against the backdrop of global energy transition and supply chain restructuring, early entry into the Brazilian mineral market is of significant strategic value. Chinese companies can participate in resource development, processing and global distribution by establishing local subsidiaries, acquisitions or joint ventures, advancing resource allocation and industrial chain integration to secure a competitive advantage globally.

Wang Jihong is a senior counsel and Xu Yibai is a non-equity partner at Zhong Lun Law Firm