Brazil’s Mining Fiscal Regime: H2 2014

The Brazilian mining industry is governed by the Ministry of Mines and Energy (MME) and the Brazil Geological Survey (CPRM). The Mining Code of 1967 regulates all mineral exploration and extraction activity in the country. The code specifies deposits and mines, sets rules and regulations for authorization, concession, licensing and permits, and plans the duties of holders of mining rights and regulating authorities, among others.

Scope

The report outlines Brazil’s governing bodies, laws, mining licenses, mining rights and obligations and key fiscal terms, which includes royalty, corporate income tax, land owner royalty, annual tax, withholding tax, depreciation rates and value added tax (VAT).

Key Highlights

• The MME came into force with Law No. 3782 of July 22, 1960. It is an apex body for the formulation and administration of regulations relating to the mining and energy industries’ resources.

• The DNPM is a federal agency that reports to the MME, focuses on planning and promoting mineral exploration, and supervises geological and mineral technology.

The CPRM is a federal government organization under the jurisdiction of the MME, which is responsible for performing geological and hydrological surveys, and also provides directives for the strategic discovery of minerals

• The Mining Code of 1967 was adopted to encourage mineral exploration. The code defines deposits and mines, and sets requirements and conditions for obtaining authorization, concession, licenses and permits.

• An EIA study is mandatory for mining companies or concession holders to obtain a license to perform mining activities.

Reasons to buy

Gain an overview of Brazil's mining fiscal regime.

Table of Contents

1 Executive Summary

2 The Brazilian Mining Industry – Governing Bodies

2.1 Ministry of Mines and Energy (MME)

2.2 National Department of Mineral Production (DNPM)

2.3 Brazil Geological Survey (CPRM)

2.4 Ministry of Science and Technology (MCT)

2.4.1 National Commission of Nuclear Energy (CNEN)

2.4.2 Industrias Nucleares do Brasil SA (INB)

3 The Brazilian Mining Industry – Governing Laws

3.1 The Mining Code

3.2 Law No. 4.118

3.3 Law No. 6.189

3.4 Law No. 9765

4 The Brazilian Mining Industry – Mining Licenses

4.1 Exploration Authorization System

4.2 Exploration Authorization Permit

4.3 Mining Concession System

4.4 Environmental Impact Assessment (EIA) Study for Mining Activity

4.5 Environmental Licensing for Mining Activity

5 The Brazilian Mining Industry – Rights and Obligations

5.1 Rights

5.2 Obligations

6 The Brazilian Mining Industry – Key Fiscal Terms

6.1 Royalty

6.2 Corporate Income Tax

6.3 Land Owner Royalty

6.4 Annual Tax

6.5 Withholding Tax

6.6 Depreciation Rates

6.7 Value Added Tax

7 The Brazilian Mining Industry – Future Development

8 Appendix

8.1 What is this Report About?

8.2 Methodology

8.3 Secondary Research

8.4 Primary Research

8.5 Contact GlobalData

8.6 About GlobalData

8.7 GlobalData’s Services

8.8 Disclaimer

List of Tables

Table 1: The Mining Industry in Brazil – Fiscal Regime Terms and Other Taxe

Table 2: The Mining Industry in Brazil – Uranium Licensing Fees (BRL), 2014

Table 3: The Mining Industry in Brazil – Federal Royalty (%), 2014

Table 4: The Mining Industry in Brazil – Mining Taxation (%), 2014

Table 5: The Mining Industry in Brazil – Depreciation Rates (Years and %), 2014

List of Figures

Figure 1: The Mining Industry in Brazil – Commodity Mines at Different Stages (Number of mines), 2014

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