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Montevideo, September 26th 2018 - 01:27 UTC

Brazil to Restrict Foreign Mining

Wednesday, January 26th 2011 - 23:46 UTC
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Brazil’s recently sworn in government, is concerned about increasing foreign interests in its mining assets and is looking in to the possibility of restricting foreign purchases of mines, Folha de Sao Paulo reported.

The government, which expects to send a draft legislation to overhaul the mining sector by June, will likely introduce mechanisms to create hurdles for buyers of Brazilian mines, Folha reported, without saying how it obtained the information.

Such mechanisms could include imposing minimum domestic supply quotas, Folha reported. Under the new legislation, the government could also restrict foreign participation in mining projects based “on the investors' profile,” it added.

A spokeswoman at the presidential palace in Brasilia declined to comment on Folha's story.

President Dilma Rousseff, who as chief of staff of the previous administration defended tougher oversight of the mining industry, wants the mining measures approved by the end of the year, Folha said.

Chinese companies have dramatically expanded their presence in Brazil's mining sector in recent months. Rousseff and other top officials have expressed growing concern over what they see as an increasingly one-sided economic relationship with China.

The Mining and Energy Ministry has been working on a proposal to revamp mining industry rules, which could include the introduction of auctions to award exploration permits.

Currently, the government awards permits based on requests put forward by miners.

Rousseff's predecessor, Luiz Inacio Lula da Silva, had in recent years also sought to create a new regulatory agency and require holders of concessions for areas with commercial mineral potential to start exploring for and exploiting deposits in a shorter time than required now.

 

 

Categories: Economy, Investments, Brazil.

Top Comments

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  • GeoffWard

    *Watch this Space*

    Its time to decide what you want to do with your shares in Vale.

    Dilma will protect Brasilian geological assets through public - private partnerships with the essential involvement of 'minor' private Brasilian contractors and a major 'state-owned/dominated' principal contractor - Vale. Foreign companies from (mostly) China will contract as the 'foreign partner'.
    There will be increased emphasis on ore->metals industries *within* Brasil - fine metals of a quality urgently required world-wide. These industries are likely to have the same ownership characteristics.

    I am developing a distinct impression that Brasil really does want to join the group of Developed States - all the early signs are pointing in this direction.

    Jan 27th, 2011 - 02:00 pm 0
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