Upon termination of the Jair Bolsonaro’s government, Law 14,515/2022 was published on 12/29/2022, which converted the Executive Order 1,133-A into law.
Upon termination of Jair Bolsonaro’s government, Law 14,515/2022 was published on 12/29/2022, which converted the Executive Order 1,133-A into law. Among other provisions, the new law authorizes Indústrias Nucleares do Brasil S.A. (INB) to sign contracts with legal entities to carry out research and mining of nuclear ores and their concentrates, associates, and derivatives. The remuneration for this activity may be established through the (i) payment of an amount in local currency; (ii) right to a percentage of the amount collected from the sale of the mining product; (iii) right to sell the associated ore; (iv) right to purchase the mining product with previously authorized exportation or (v) other forms set forth in contracts. In addition, important changes were promoted in the Mining Code, among them (i) the extension of the term of validity of the research authorization from 3 years to 4 years; (ii) the possibility of the entrepreneur undertaking to obtain the necessary financing for the fulfillment of the Economic Utilization Plan (PAE) and operation of the mine – such undertaking is brought as an alternative to the declaration of availability of resources provided for in the Mining Code and (iii) the possibility of any mining right – at any stage – to be offered as collateral. This last change is a breakthrough for the mining sector which, for decades, had been challenging the understanding that only Mining Concessions could be offered in funding operations for the financing of mining, which created a major obstacle to the implementation of new projects in Brazil. With this change, we believe that many green-field projects may be implemented. Finally, in view of the constant concern with the improvement of the management and inspection of Brazilian mining activity, the new law established that the ANM will oversee creating and managing a "National Register of Mining Structures", in which waste rock dumps, tailings dams, and mineral processing facilities, as well as other facilities set out in the Economic Utilization Plan (PAE) will be enrolled.
