monday, 11 march of 2019

DNPM Extinction

Mariana Mendonça Balga

On December 5, 2018, the decree 9,587 of november 28th, 2018 entered into force, which founded and defined the organizational structure of the National Mining Agency - ANM in Brazil, a regulatory agency that extinguished and replaced the National Department of Mineral Production, DNPM.

This is one of the acts of implementation of the new Brazilian Mining Regulatory Framework, an issue that had been on the government agenda for many years and culminated in organizational, administrative and legal changes in the mining law.

The ANM has more extensive attributions than the extinct DNPM, since it is effectively a regulatory agency. The ANM, for example, will be responsible for implementing the national policy for mining activities, providing technical support to the Granting Authority, regulating, monitoring and collecting government participation, mediating conflicts between mining agents, creating the Brazilian certification system of reserves and mineral resources, amongst others.

The matters of decision of the Collegiate Board of Directors will be decided in public sessions with ANM's representatives such as, the Federal Prosecutor's Office and other involved parties and interested parties, in order to guarantee transparency and publicity of the agency's decisions. The entry into force of ANM, also marked the beginning of the New Regulatory Laws of the Mining Code (NRCM), decree 9,406 of 2018. The NRCM is responsible for several conceptual, procedural and structural modifications in mining law. Amongst them, we mention: the procedures inherent to the research phase and presentation of the final research report; the procedure of availability of the area to research; implementation of the possibility of withdrawal or partial resignation of the research authorization; the increase of formal requirements for concession of mining, among others.

The NRCM also attempted to update previously outdated concepts that lacked reformulation such as mining, ambitious mining, resources (inferred, indicated and measured) and reserves (probable and proved). It tried to regulate important issues, lacking previous regulations, where interpretation was not always uniform, such as the use of waste,and industrial waste from mining. An already consolidated theme, however, lacking in regulations such as the possibility of mining rights being offered as collateral for financing purposes, is now expressed. The DNPM norms that were not expressly revoked continue in force, as well as the Mining Code, decree law 277 of 1967. The ANM will establish, until June 3, 2019, deadlines for processing the mining processes.

The Mining Permit and Extraction Register were revoked.


*Mariana Mendonça Balga is partner of Homero Costa Advogados.

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