《畢馬威：2023巴西礦業指南（英文版）（44頁）.pdf》由會員分享，可在線閱讀，更多相關《畢馬威：2023巴西礦業指南（英文版）（44頁）.pdf（44頁珍藏版）》請在三個皮匠報告上搜索。

1、1Brazil Country Mining Guide-2023Brazil Country Mining Guide .br2Brazil Country Mining Guide-2023ABOUT KPMG.3ABOUT IBRAM.401 Executive summary.502 Country snapshot.603 EIU rankings:Ease of doing business.704 Type of government and judiciary.805 Economy and fiscal policy.906 Fraser institute rankings

2、.1107 Regulatory environment.1208 BM&FBOVESPA Brazil exchange.1709 Sustainability and Environment.1810 Taxation.2211 Power supply.2712 Infrastructure development.2813 Labor relations and employment situation.3014 Inbound and outbound investment.3215 Key commodities Production and reserves.3416 IBRAM

3、 Associated Mining Companies.38KPMG Global Mining practice.41Further insight from KPMG.41Contents3Brazil Country Mining Guide-2023ABOUT KPMGKPMG in BrazilThrough helping other organizations mitigate risks and grasp opportunities,we can drive positive,sustainable change for clients,our people and soc

4、iety at large.KPMG firms operate in 143 countries and territories,and in FY22,collectively employed more than 265,000 partners and people,serving the needs of business,governments,public-sector agencies,not-for-profits and through KPMG firms audit and assurance practices,the capital markets.KPMG is

5、committed to quality and service excellence in all that we do,bringing our best to clients and earning the publics trust through our actions and behaviors both professionally and personally.KPMG has developed an international network of experienced professionals in the Mining industry.KPMG Internati

6、onals member firms operate in the three regions Americas;Europe,Africa and Middle East;and Asia and Oceania,each one with a dedicated team to the industry.This structure enables its professionals to strike the right balance between identifying and understanding domestic markets,thus helping ensure t

7、hat they are able to implement global strategies and practices in a consist manner.In Brazil,approximately 5,000 professionals work in 22 cities located in 13 States and the Federal District.KPMG in Brazil has offices located in So Paulo(head office),Belm,Belo Horizonte,Braslia,Campinas,Cuiab,Curiti

8、ba,Florianpolis,Fortaleza,Goinia,Joinville,Londrina,Manaus,Osasco,Porto Alegre,Recife,Ribeiro Preto,Rio de Janeiro,Salvador,So Carlos,So Jos dos Campos and Uberlndia.From small and middle-sized mining companies to large mining companies and from the beginning of the exploitation to the mining cappin

9、g,KPMG in Brazil has the resources,technical knowledge and team focused on satisfying your needs.In Brazil,KPMG relies on one of the largest Mining practices in the country,with professionals providing Audit,Tax and Advisory services focused on this industry.We provide services to approximately 60%o

10、f the major mining companies in the world4Brazil Country Mining Guide-2023ABOUT IBRAMIBRAM is a Brazilian private non-profit organization,with more than 130 associates responsible for 85%of Brazils mineral production.It carries with it the essence and strength of the true#BrazilianMining.This mining

11、 is the one aligned with sustainability.Inductive of good ESG(environment,social responsibility and governance)practices in everything it does.Ethical and transparent in its relationships with people.Inclusive.Influential and partner in initiatives that promote socioeconomic development and quality

12、of life for people in general.All IBRAMs actions are directed toward building a new perspective for the future of Brazilian Mining by outlining strategies and leading the sectors transition to an even more productive scenario,with sustainability,safety and responsibility to all those around it.In th

13、is sense,IBRAM works to strengthen the relationships between mining companies and their various publics,such as their professionals and suppliers,the government and society.It also works to connect the sector.Encourages innovation,disseminates knowledge,fosters and disseminates good practices,articu

14、lating business and development opportunities for the mining industry.The Association is always open and willing to dialogue with other public and private organizations,with full knowledge of the facts,commitment and competence to listen,understand,propose,negotiate,motivate,engage and unite.Sustain

15、able,responsible,closer to people and partner of the Countrys development this is the true#BrazilianMining.5Brazil Country Mining Guide-202301 Executive summaryBrazil occupies a place among the top five mineral producers in the world-producing and marketing more than 90 mineral commodities.It is the

16、 worlds largest producer of niobium and second largest of iron ore.The worlds third largest mining company overall is the Brazilian Vale,leading iron ore production.Other important minerals from the Brazilian mining sector include gold,kaolin,nickel,coal and phosphates.It presents great opportunitie

17、s,as the country possesses proven reserves of several strategic commodities and less than 50%of the territory is geologically mapped.New mining operations require environmental licenses at three different stages of development a preliminary environmental license,an installation license(before the st

18、art of construction),and an operational license.The World Bank expectations of ongoing slowdown and likely global recession in the world economy,as well as a scenario of high interest rates and inflation in Brazil has affected minerals prices.Steel companies are more impacted and mining companies ex

19、pect a recovery in the economic activity in China after governmental measures to boost construction sector.Investment on the infrastructure front,however,is expected to grow in the near future,considering new governments declaration on governmental priorities.There are high expectations on investmen

20、ts not only in thee energy sector,but also housing,water and sanitation.There are 45 assets in the transportation agenda for the next few years.The government has opted for private participation in infrastructure related projects in order to attract the required funds.However,Presidents declarations

21、 of reviewing recent regulatory frameworks advances from previous government has concerned the market.There is a very good expectation for the new renewables technologies growth in Brazil,such as offshore wind and hydrogen,as it has an important potential to explore them.Brazil is one of the frontru

22、nners in meeting the carbon-emission reduction targets.It has laid great emphasis on promoting the exploitation of renewable energy potential in the country.In 2021,the country generated 85 percent of its total electricity from renewable sources.In addition to having vast hydroelectricity potential,

23、Brazil also had has an estimated 20 GW in wind power potential in 2021 with 30.8 GW forecast by 2031.It is expected that solar will follow the same way,reaching at least 45.3 GW of installed capacity by 2031.6Brazil Country Mining Guide-202302 Country snapshotFigure 1:Country Snapshot1 Instituto Bra

24、sileiro de Geografia e Estatstica 20222 United Nations 20223 Banco Central 2023BRAZILGEOGRAPHYThe Federative Republic of Brazil,commonly known as Brazil,is the fifth largest country in the world,and the third largest in the Americas,after the US and Canada.Located in the eastern part of South Americ

25、a(1000 S,5500 W)and spread over 8.510.345 square kilometers,Brazil is slightly smaller in size compared to the US.CLIMATEThe climate in Brazil varies considerably with latitude and elevation.In the north,the climate is mostly tropical,while in the south,it is temperate.Brazils climate is characteriz

26、ed by five climatic regions equatorial,tropical,semi-arid,highland tropical,and subtropical.POPULATIONWith an estimated population of 215.64 million,Brazil is the seventh most populated country in the world.The countrys population is relatively young,with a median age of 32.6 years.CURRENCYAverage e

27、xchange rate in Q4 2022 was:BRL5,25:US$1MINING IN BRAZIL250REVENUER$BILLIONS90More thancommodities producedMINERALS204More thandirect jobsTHOUSANDS2.25Aroundindirect jobsMILLION7,300More thanCOMPANIES86.2TAXES AND TRIBUTESR$BILLIONS1.05ESTIMATED PRODUCTIONBILLION TONS7Brazil Country Mining Guide-202

28、303 EIU rankings:Ease of doing business4Brazil ranked 51st among the 82 countries covered under the business environment ranking of the Economic Intelligence Unit(EIU).In the regional rankings of the South American region for 2017-21,which included 12 countries,Brazil ranked fifth.Over the forecast

29、period of 2022-26,EIU expects Brazil to slightly decreased rank(54st)globally.The 2022 electoral cycle has delayed efforts to consolidate the public finances,improve the business environment and enact structural reforms.According to EIU,some factors are likely to limit Brazils growth such as poor ef

30、fectiveness of the public sector;a burdensome tax system;poor infrastructure;weak market dynamics;shortages of skilled-labor;and failure to advance structural as well as growth-enhancing reforms,etc.,along with softer Chinese demand and slower credit growth.Brazils overall business environment score

31、 rises in the 2022-26 forecast period compared with the 2017-21 historical period,but faster improvements in other countries mean that Brazil falls three places globally,to 54th,and one place regionally,to sixth.EIU expects increased adjustments of some economic policies in 2023 with new government,

32、such as improvements in some categories of the business environment,foreign trade and exchange controls,and technological readiness.The labor market will strengthen but will remain a weak point overall.Brazils score for tax is unchanged,and it remains the weakest aspect of the overall investment cli

33、mate by some margin.However,the tax reform is expected to be voted in Congress in the first half of2023,which may affect positively this result.2017-212022-262017-212022-262017-212022-265.816.27515456Table 1:Ease of doing businessNote a.Out of 10Note b.Out of 82 countries.Note c.Out of 12 countries:

34、Argentina,Brazil,Chile,Colombia,Costa Rica,Cuba,Dominican Republic,Ecuador,El Salvador,Mexico,Peru and Venezuela.Value of indexAGlobal rankBRegional rankC4 EIU 20225 G1 20238Brazil Country Mining Guide-202304 Type of government and judiciary6,7,8Brazil a federal republic is one of the largest democr

35、acies in the world.Voting is compulsory for every literate Brazilian resident between the ages of 18 and 69 years.The president,elected for a term of four years,is the head of the state and the government.The executive powers rest with the cabinet,which is appointed and headed by the president.Contr

36、ol over the budget also lies with the president.Brazil has 26 states and 1 federal district,which constitute its administrative divisions.The National Congress is the legislative body of Brazil that follows a bicameral structure.The Federal Senate(the upper house)has 81 representatives(three from ea

37、ch of the 26 states and three from the federal district of Brasilia).The Chamber of Deputies(the lower house)has 513 directly elected members,with the number of deputies from each state proportional to the population of the state or Federal District,with a minimum limit of eight and a maximum of sev

38、enty for each.The members of the upper house serve for an eight-year term,while those in the lower house serve for a four-year term.The Supreme Federal Court is the highest court in the country,comprising 11 justices.The President appoints the justices and are approved by the Federal Senate.Each sta

39、te has its own judicial system.The judicial system is responsible for contesting and supporting any decisions made by the government that affect the rights of Brazils individual residents.In addition,the country has a system of courts to deal with disputes between states and matters that lie outside

40、 the jurisdiction of state courts.In 2022,general elections were held to elect the president,vice president,the National Congress,the governors,vice governors,and legislative assemblies.Luiz Incio Lula da Silva became president-elect of Brazil.6 STF 20197 National Congress s.d8 Brazilian Federal Con

41、stitution 19889Brazil Country Mining Guide-202305 Economy and fiscalpolicyBrazil is the worlds twelfth largest economy according to the latest World Bank data.As per the 2021 estimates of World Bank data the nominal GDP of Brazil was$1.60 trillion,while in terms of purchasing power parity it stood a

42、t$3.43 trillion.Brazil is a well-diversified middle-income economy,with developed and large mining,manufacturing,and service sectors.The countrys service,industry,and agriculture sectors contribute 57.8 percent,20.2 percent,and 7.5 percent,respectively,to the total GDP.Most of the countrys industrie

43、s are located in its southern and southeastern regions.9GDP Growth After a pandemic-induced recession from COVID-19 in 2020(-3.9 percent),the economy rebounded in 2021(+5.0 percent).The post-pandemic recovery was mainly driven by the growth of industry,4.8 percent,and the service sector,5.3 percent,

44、while agriculture sector had a lower increase,only 0.3 percent,due to adverse weather conditions such as drought and frost.10However,the GDP growth rate has been increasing in the recent years.It was estimated at-3.5 percent in 2015,but the cumulative growth between 2015 and 2021 was 0.4 percent.In

45、2023,the Brazilian economy is expected to witness 0.8 percent growth.119 IBGE 202210 Banco Central 2022 11 Banco Central 202212 IBGE 2023Monetary and Fiscal Policy Monetary and fiscal reforms introduced in 1994,which included the introduction of the current currency Real(R$or BRL),the launch of an e

46、xtensive privatization program,and the focus shift on fiscal discipline,Brazil has significantly improved its macroeconomic stability.The inflation rate was 5.79 percent in 2022,a drop from the previous year(10.06 percent)influenced by the improved global and domestic economic situation after the wo

47、rst part of the COVID-19 pandemic with“price freeze”policies for transportation fuel.1210Brazil Country Mining Guide-2023Economic stabilization,growth and inflation reduction are some of the priorities for the mandate of Brazils new Finance Minister Fernando Haddad.The expectation is to create a new

48、 fiscal anchor in the first half of 2023,and to bring reliability,respect and viability to his fiscal policy with the support of the IMF.Despite this,the projected inflation rate for the current year has undergone successive increases,the most recent rate being 5.74 percent for 2023,according to dat

49、a provided by the Brazilian Central Bank.Foreign TradeForeign trade constituted nearly 40 percent of Brazils GDP(World Bank estimates)in 2021,with Income level Upper middle incomeGDP(current US$)$1.6 trillion(2021 estimates)17Population(total)215.6 million(January 2023 estimates)18Unemployment rate

50、8.7%(3rd quarter 2022 estimates)19Inflation rate 5.79%(2022 estimates)20Economic Statistics13 Agencia Brasil 2023 14 Banco Central do Brasil 202315 MDIC 202316 IPEA 202217 World Bank 202218 IBGE 202319 IBGE 202220 IBGE 2023China,the US,and the EU being the largest trading partners.13 The total impor

51、t and export for the year 2022 was US$272.7 billion and US$334.4 billion,respectively.14 Brazil has maintained a positive annual trade balance since 2014 and reached its highest value in 2022 with a surplus of$61.7 billion.Exports in 2022 also reached the highest value in the historical series,up 19

52、 percent from 2021.The value exported grew to Brazils main trading partners,such as China(1.5 percent increase in the daily average,to a total of US$91.3 billion),the European Union(39.6 percent increase to US$51 billion),and the United States(20.2 percent,to US$37.4).The Agriculture and Livestock S

53、ector was the one with the biggest growth in 2022 in relation to 2021,which showed an increase in the value of exports of 36.1 percent.15 Brazil has been maintaining a sizeable foreign reserve of US$324.4 billion(as on December 31,2021,Banco Central do Brasil estimates)in recent years.Its public deb

54、t has decreased from 78.3 percent of GDP in 2021 to 73.5 percent of GDP in 2021.Moreover,the current debt represents a regression compared to 2018(77.3 percent of GDP).Brazils external debt increased from US$554.9 billion on December 31,2020,to US$567.5 billion as on December 31,2021.1611Brazil Coun

55、try Mining Guide-202306 Fraser institute rankingsAmong the 165 countries covered in the Fraser Institutes Economic Freedom of the World 2022 report,Brazil ranked 114th,increasing eight positions from its last years rank as it scored 6.33 on a scale of one to ten.The annual peer-reviewed report ranke

56、d countries based on 42 data points to study the level of economic freedom in 165 countries.The report analyzes the business and political environment in terms of personal choice;voluntary exchange;freedom to enter markets and compete;and security of people and privately owned property in the follow

57、ing five broad areas:Size of government:expenditures,taxes,and enterprises Legal structure and security of property rights Access to sound money Freedom to trade internationally Regulation of credit,labor,and businessIn 2021,Brazil ranked 51 on Investment Attractiveness Index among the 84 countries

58、in the Fraser Institute s Survey of Mining Companies 2021.On other indexes such as Policy Perception and Best Practices Mineral Potential,Brazil ranked 68 and 40,respectively.Table 2 has the evolution of Brazil in the ranking position of the survey.Figure 2 provides the countrys scores evolution on

59、the key indices of the survey.Economic Freedom of the World 202221Survey of Mining Companies 20212221 Fraser Institute 202222 Fraser Institute 2022 BRAZILIAN POSITION,SURVEY OF MINING COMPANIES 202120172018201920202021POLICY PERCEPTION 66/9157/8339/7656/7768/84MINERAL POTENTIAL 59/9156/8348/7624/774

60、0/84INVESTMENT ATTRACTIVENESS 65/9158/8346/7638/7751/84Table 2:Brazilian position in the Mining Companies SurveyFigure 2:Brazils scores,Survey of Mining Companies 2021Note*:The Policy Perception Index is a composite index that measures the effects of government policy on attitudes toward exploration

61、 investment.Note*:The Mineral Potential index is based on respondents answers to the question on the attractiveness of the regions“pure”mineral potential independent of any policy restrictions.The index rates regions based on their geologic attractiveness.Note*:The Investment Attractiveness Index is

62、 constructed by combining the Best Practices Mineral Potential index and the Policy Perception Index.The index reflects the perceived importance of policy versus mineral potential.55.764.469.866.747.654.854.859.171.161.955.158.663.469.356.2404550556065707520172018201920202021Policy Perception indexM

63、ineral Potential indexInvestment Attractiveness Index12Brazil Country Mining Guide-202307 Regulatory environment23,24,25Brazil has a complex regulatory framework,with jurisdiction and approval processes divided among municipal,state,and federal governments.At the federal level the main institutions

64、involved directly in the mining sector are the ministry the Ministry of Mines and Energy(MME),the National Mining Civil HouseMinistry of EnvironmentMinistry of Mines and EnergySecretariat of Geology,Mining and Mineral TransformationNational mining AgencyBrazilian Institute of Environment and Renewab

65、le Natural Resources-IBAMANational Commission of Nuclear Energy-CNENNational Health Surveillance Agency-ANVISAGeological Survey of Brazil-SGB-CRPMMinistry of TreasuryMinistries and SecretariatsSpecialized Public InstitutionsTechnicalRegulatorySpecial Secretariat of Security and LaborMinistry of Scie

66、nce,Technology and InnovationsMinistry of Health23 Ministrio de Minas e Energia 202324 OECD 202225 IBRAM 2019Figure 3:Structure of the federal institutions involved in the mining sectorSource:Ministrio de Minas e Energia 2023Ministry of Mines and Energy(MME)The Ministry of Mines and Energy(MME)is re

67、sponsible to create and guarantee the practice of public policies related to the sustainable use of energy and mineral resources in Brazil.It has 4 secretariats which are responsible for proposing national guidelines and policies in its areas of operation.The Secretariat of Geology,Mining and Minera

68、l Transformation oversees the preparation and publication of global policies for the mining sector.It has also agencies that are responsible for regulation and/or supervision of the activities of the sectors linked to the body.The National Mining Agency is the one that manages the use of mining reso

69、urces,as well as regulates and supervises activities involving the use of mining resources.Agency(ANM),and the Geological Service of Brazil(CPRM).However there are several entities involved in the Brazilian governments regulation of safety,labor and environmental standards.Figure 3 shows federal ins

70、titutions involved in the mining sector.In addition,another function of the MME is to monitor and evaluate the performance of the geology,mining and mineral transformation sectors,with the objective of promoting updates and corrections in the existing regulatory models.With respect to mining concess

71、ions,the MME issues concessions and decides on the validity or expiration of mining concessions for specific substances not covered by the ANM,such as metallic substances and mineral waters.Likewise,the MME authorizes the approval of the assignment or transfer of these mining concessions.13Brazil Co

72、untry Mining Guide-202326 Sand and gravel for use in construction;rocks and other mineral substances,when equipped for cobblestones,guides,gutters,fences;clays for various industries;ornamental and coating stones;and calcium and magnesium carbonates used in different industries.The Ministry of Mines

73、 and Energy authorizes concessions for all other mineral substances.The Secretariat of Geology,Mining and Mineral Transformation(SGM)The Secretariat was created for the guidance,coordination and implementation of policies for the mineral sector.According to MME,the Secretariat is responsible for“con

74、ducting studies and proposing actions for the sustainable development of mining and mineral transformation,formulating and articulating proposals for multi-annual plans and programs,in addition to promoting and supporting research activities and improvement of technologies in the fields of geology.a

75、nd the mineral industry”.The SGM has also the role of granting mining ordinances for metallic substances,mineral commodities and mineral water,as well as supervising the control and inspection of mineral goods exploration and production.National Mining Agency(ANM):The National Mining Agency(ANM for

76、its acronym in Portuguese)is the regulatory body for the Brazilian mining sector.Created in 2017,It has replaced the National Department of Mineral Production(DNPM),in the process of modernizing the regulatory framework of the sector,including the enactment of a new Mining Code.Its main activities r

77、oles:Designs,implements and supervises compliance with the mining regulatory standard(NRM)Issue sanctions in case of breach of safety regulations Requests and consolidates information about the mining sector provided by mining rights holders Manages the mining registry and the registration of title

78、deeds and mining rights Regulates the exchange of information on mining operations between authorities and entities of the Union,States,Federal District and States.Counties Grants mining titles:exploration licenses for all mineral substances and mining concessions for a certain group of minerals26 C

79、ollects and manages mining revenues and contributions from the Financial Compensation for the Operation of Mineral Resources(CFEM),the Annual Fee per Hectare(TAH)and fines imposed by the same bodyGeological Survey of Brazil(SGB-CPRM)SGB-CPRM was founded in 1969 under the name of Mineral Resources Re

80、search Company CPRM.Now,the Geological Survey of Brazil(SGB-CPRM)is the federal agency responsible for geological mapping of the country,financed by the national treasury in accordance with governmental programs.Other important institutionsAccording to the Federal Constitution of 1988,the Public Min

81、istry has a function of Justice:the defense of unavailable social and individual rights;the defense of the legal order and the defense of the democratic regime.Thus,the institution has many interfaces with mining themes,involving not only investigation,but also law enforcement in cases of illegal mi

82、ning,disasters,and environmental licenses.The Ministry of Economy(ME)is responsible,among other activities,for the development of industry,commerce and services.The Special Secretariat for Social Security and Labor is one of the secretariats of the Ministry of Economy.It has overseen the development

83、 and implementation of labor.In the mining sector,the Special Secretariat for Social Security and Labor is responsible,together with the ANM,for regulating occupational hygiene and safety standards,and carries out work inspections and imposes the corresponding sanctions through its regional teams.Th

84、e Ministry of Environment is responsible for developing environmental regulations,while the National Council of Environment(CONAMA)implements these regulations,and the Brazilian Institute for Environment and Renewable Resources(IBAMA)acts as the primary licensing entity.However,most of the environme

85、ntal licenses are granted by the state,not by the federal government.New mining operations require environmental licenses at three different stages of development a preliminary environmental license,an installation license(before the start of construction)and an operational license(before the beginn

86、ing of operations).Specifically in relation to mineral water for human consumption,the National Health Surveillance Agency(ANVISA),linked to the Ministry of Health,has powers in relation to the pre-marketing phase.Another exception is the case of uranium.The National Nuclear Energy Commission,is als

87、o an autonomous government agency,linked to the Ministry of Science,Technology and Innovation.Regarding mining,CNEN is responsible for enforcing regulations on infrastructure and operational safety in uranium mines.The extraction of radioactive minerals is a state monopoly and CNEN provides the nece

88、ssary technical standards for uranium mining operations.14Brazil Country Mining Guide-2023Figure 4:Development of the regulatory framework for the Brazilian mining industrySource:OECD 2022Regulatory framework for the mining sector in BrazilBrazilian general regulatory framework is rooted in the Fede

89、ral Constitution(FC)by establishing how the Brazilian Union manages mineral resources.The Brazilian Mining Code,published in 1967,establishes the main regulations that are in force in the mining In Brazil,it is an exclusive competence of the Union to legislate on mineral resources(Article 22,XII of

90、the FC).All mines and mineral resources are owned by Federal State(Union).The ownership of mineral resources is separated from lands ownership.The mining right-holder owns the product from the mining.Thus,exploration permit(Authorization)and mining concession are granted by the Union.Geological surv

91、eys in Brazil play an important role in providing data to find new mineral deposits.They provide essential data that constitute one of the bases to support the regulatory framework of the mining sector.The Geological Survey of Brazil(SGB-CPRM)is the federal agency responsible for geological mapping

92、of the country.At the state level,there are currently no significant initiatives for the development of geological mapping projects.sectors.Legal and regulatory framework has been modified over the years,however it still needs an update to support a modern and competitive mining industry.The develop

93、ment of Brazilian regulatory framework is shown in Figure 4.The geological surveys carried out by the SGB-CPRM are financed with resources from the national treasury in accordance with government programs within the Multi-Year Plans(PPA).13 The Directorate of Geology of Mineral Resources of the SGB-

94、CPRM,through the Department of Geology,is responsible for executing the agencys geological mapping programs.The selection of areas for geological mapping projects in the SGB-CPRM is fundamentally based on the strategic importance of each area,considering its mineral potential and level of previous g

95、eological knowledge.After the publication of the survey project results,the SGB-CPRM works on the dissemination of geological information,launching events,lectures at technical-scientific events or conferences.Constitution of the Federal RepublicConstitution of the Federal RepublicLaw of Regulatory

96、AgenciesLaw of Economic FreedomMining CodeCreation of ANMRegulatory Norms of MiningBylaw of the mining CodeRegulatory impact analysis1934198820191967191720012018202015Brazil Country Mining Guide-2023Figure 5:Authorization and concessions regimes based on Brazilian Mining Code and Decree No.9.406/201

97、8.Source:OECD 2022Figure 6:Mining Rights and Environmental LicenseSource:IBRAMThe survey is used to define mining concessions.The data collected is publicly available for a variety of uses,including for private entities to define areas of interest requested from the ANM.The rules and procedures for

98、obtaining a mining title are defined in the Mining Code and Decree No.The process to obtain the environmental license follows the Authorization and Concessions Regimes process,as it can be seen in the figure 6:Request for an exploration authorization(art.16,17,19 of Mining Code).ANM analyses the req

99、uest and grants an exploration permit once all legal requirements are met.This permit may last between 1 to 3 years and it is extendable per an equal period.Presentation of the Final Exploration Report(item V,art 23 and art 23 of the Mining Code).Approval of Final Exploration Report by ANM.Request o

100、f a mining concession development and operation of a mine(art.38 of the Mining Code)Granting of mining concession(art.43 of the Mining Code)by the Ministry of Mines and Energy or ANM,depending on the mineral substance.It has an indefinite duration.9,406/2018(Regulation of the Mining Code,NRCM).It go

101、es through the process of application for the Authorization and Concession Regimes,applies to the mineral research phase and the concession regime to mineral production.This process is summarized in figure 5:010203040506RequestExplorationPermitPreliminaryOperationLicense*PreviousLicenseInstalationLi

102、censeOperationLicenseExploitationRequirementExploitationconcessionMININGRIGHTSENVIRONMENTALLICENSE+TIMEOperation16Brazil Country Mining Guide-2023Regulatory expectations for the mining sectorIn the Official transition report27 issued by the new federal government elected in 2022,there is a concern r

103、elated to regulatory issues.Additionally,it is recognized that there is a lack geological knowledge and more research is needed.ANM Regulatory Agenda(22-23)ANMs Regulatory Agenda is an instrument to provide transparency for the establishment of priority project themes.In 22-23 ANMs agenda has six th

104、ematic axes:Transversal:main topics involve alternative means of conflict resolution,Areas availability/Regulatory Result Analysis(ARR);regulation of seizure and auction of substances and equipment from illegal mining and simplification of assignment and leasing of mineral rights.Sustainability:comp

105、rises financial guarantees or insurance to cover risks arising from mining activities.It also monitors the implementation of the entire Regulatory Agenda,together with the other organizational units of ANM.Mineral research:includes the production of the Final Mineral Research Report,determining the

106、minimum content and rules for its presentation for aggregates,ornamental rocks and lining rocks.It develops issues related to the withdrawal of requests for mineral grants and the renunciation of mining titles and is linked to the regulation of the Electronic Request for Mineral Research(REPEM).With

107、in its indicative agenda it also attaches importance to the regulation of art.23 of Federal Decree No.9,406/2018.Mineral production:involves topics related to the Mining Concession and the Economic Use Plan(PAE);licensing supporting the development of small businesses;among others,it also comprises

108、the themes Mining Consortium,Globalization of areas,Amendment by simplified procedure and Coexistence of rights over the same area Mineral water:involves,among other issues adequacy of technical regulations for mineral water to welcome new technologies and simplify procedures and compliance in telem

109、etry systems to monitor mineral water extraction.Its agenda also includes the themes Mixing of water from different sources.Inspection and Financial Compensation for Exploitation of Mineral Resources(CFEM):it is related to the regulation of Federal Law No.13,540/2017 concerning the determination of

110、criteria for establishing the current price of mineral goods;the National Registry of the First Acquirer of mineral goods from the Mining Permission System and with the Regulation of the Annual Fee per Hectare(TAH),regarding the collection of TAH,among other topics.27 Law 10.609/2002 was created in

111、order to provide conditions for the future President of the Republic to receive all the data and information necessary for his government.Findings from the transition process can be found in the Final Report of the Transition office.17Brazil Country Mining Guide-2023CompanyTickerNetWorth(mi)Number o

112、f Shares Thousand(2021)VALEVALE197,058,0005,132,458LITELLTEL3,095,310215,495AURA MINERALS INC.AURA1,51972,244CBACBAV4,715,981595,833CSN MINERACAOCMIN13,998,2875,591,246Table 3:BM&FBOVESPA listed mining companies(metallic minerals)Source:B3;Emis;Financial statements of companiesBM&FBOVESPA listed min

113、ing companies(metallic minerals)R$thousand 2828 B3 202308 BM&FBOVESPA Brazil exchange18Brazil Country Mining Guide-202329 Planalto 201730 Planalto 196731 Planalto 202009 Sustainability and EnvironmentThe mining sector poses significant environmental challenges.Recently,the mining industry in Brazil

114、had two major environmental incidents(in Mariana 2015 and Brumadinho in 2019)that have significantly affected the industry.These dam breaks raised the bar of legislation and public scrutiny over mining companies environmental practices.Other important trends are impacting the industry:climate change

115、,biodiversity,and human rights.Mining Waste ManagementMost mining operations in Brazil still relies in tailings dams to manage byproducts of the activity that may be harmful to the environment if not properly managed.Tailings and management structures are regulated by the Brazilian Mining Agency(ANM

116、)29 which is responsible for issuing tailings dam safety regulations and overseeing the management of tailings dams30.It also requires mining companies to conduct regular safety inspections,and to have emergency action plans in place in case of a dam failure.In October 2020 the law 14.066/202031 was

117、 sanctioned in response to the Brumadinho dam burst in January 2019.The main aspects of the regulation include the prohibition of the“upstream”type of dam construction,a method where the dam is expanded with containment dykes rest on the deposited tailings themselves and was the structure used in th

118、e two major incidents of dam bursts.It also determines that inspection bodies inform the corresponding protection agency and the emergency response bodies(civil defense)of the inspection actions that verify the need to adopt emergency safety measures in any dam.Therefore,the dam safety plan must hav

119、e,among other points,an emergency action plan(PAE),mandatory for all dams with high and medium associated potential damage or high risk,at the discretion of the supervisory body.The preparation of the PAE is also mandatory for all mining tailings dams.The dam safety plan must also identify the exist

120、ing risks,have a flood map,taking into account the worst possible scenario,and bring the technical data of structures,installations and dam monitoring equipment.The company must keep the dam safety plan updated and operational until the structure is deactivated.This plan must also be included in the

121、 National Information System on Dam Safety(SNISB),which is maintained by ANM.19Brazil Country Mining Guide-202332 Planalto 198933 ICMM 202034 ICMM s.d35 Planalto 202236 TCFD 201737 Considering public emissions record published by Fundao Getlio Vargas,mining companies registered,like Anglo American,A

122、tlantic Nickel,CSN Minerao,and recently ERO Brasil Caraba,Kinross and Taboca,present scope 3The PAE has to be published on the companys website and maintained digitally at the SNISB.Before the start of the first filling of the reservoir,the company responsible for the dam must hold meetings with the

123、 communities in order to present the PAE and carry out the preventive measures provided for therein,in joint work with city halls and civil defense agencies.The law also explains that the companies that control dams are obliged,in cases of disaster,to repair damage to human life,the environment and

124、public and private assets,until the structure is completely closed.The supervisory body may require the non-cumulative presentation of collateral,insurance,surety or other financial or real guarantees to companies controlling dams of mining tailings,industrial or nuclear waste classified as medium a

125、nd high risk;or water accumulation dams for hydroelectric purposes,classified as high risk.Additionally,the Brazilian National Environmental Council(CONAMA)is responsible for issuing regulations on the protection of water resources,air and soil,and also the management of hazardous waste32.To comply

126、with regulation as well as obtain a social license to operate with local communities,the companies are investing in technologies to reduce the amount of waste generated and improve the management of existing waste,by employing byproducts as inputs in other economic activities,utilizing drained taili

127、ngs and wasterock piles as well as deactivating the existing structures with safe closure processes.Globally,the ICMM(International Council on Mining and Metals),PRI(Principles on Responsible Investing)and UNEP(United Nations Environmental Program)developed and published in 2021 the GISTM Global Ind

128、ustry Standard on Tailings Management33,outlining a series of requirements to be complied by ICMMs signatory companies34,many of which operate in Brazil.Complying with this standards presents an opportunity for the companies to enhance their overall controls over the tailings management risks.Climat

129、e ChangeThe mining industry in Brazil is also impacted by climate change,both as a contributor to greenhouse gas emissions and as a sector exposed to various climate risks such as extended droughts and excess flooding.The Brazilian National Policy on Climate Change is the main legislation that regul

130、ates the mitigation and adaptation of the mining sector to the climate change effects.The decree 11.075 of 202235 established a deadline in 2023 for the establishment of sectoral emissions reduction and neutralization plans in Brazil meaning,among others,the mining companies will have to comply to a

131、 decarbonization timeline aiming net zero in 2050.Regarding climate risks,they may be classified as physical risks with direct or indirect impact on the operations such as floods,draughts and,indirectly,food inflation,infrastructure and disruption caused by extreme weather events,or transition risks

132、 the required change in technology and early retirement of outdated machinery,carbon pricing,legislation and so on.36 On the mitigation part of the equation,the sector is advancing specially in:Quantifying and analyzing emissions across the entire value chain,including scope 3 emissions downstream(l

133、ogistics and steel production)37;Developing decarbonization pathways aligned with the Paris Agreement(aiming to limit the global warming to 1.5C)through partnerships with organizations such as the Science Based Targets initiative(SBTi);Incorporating broader ESG considerations,such as biodiversity lo

134、ss and natural capital,into their transition approach;Innovating to scale clean technologies at an accelerated pace to adopt in the mining investment cycle throughout the decade.Mining will be demanded to be in compliance with European,US and Chinese carbon regulations.As steel operations are energy

135、 intensive and the investment cycle is long,decarbonizing and simultaneously scaling operations to meet future demand is critical to broaden transition of the global economy.20Brazil Country Mining Guide-2023The transition to a low carbon economy is also an opportunity to specific mineral assets suc

136、h as lithium,copper,rare earth and others used in the transition to a low carbon economy37 by enabling the infrastructure and inputs for green energy production,distribution and storage in the near future.Adaptation is another important aspect,of current climate change strategy in the mining sector.

137、That means investments to be made in mitigating the probability or severity of the adverse impacts in assets.The detailed mapping of future scenarios impacts are crucial for planning and developing the correct responses38.Water and BiodiversityDue to the relevant biodiversity in the country and the

138、significance of water resources to the industry,these topics are very sensitive to the mining and metals activities in Brazil.Water is used throughout the value chain,including in ore processing,in the extraction and excavation phases;in the control of dust,solvents such as coolants and other proces

139、ses.The impact on water resources is also caused by disruption and contamination of surface and groundwater.The mining operations,its subjacent infrastructure and social changes in the area(workers migration)may result in acute impacts in the biodiversity such as habitat loss,water contamination,and

140、 disruption of animal migration routes can cause ecological damage and affect local communities.New frameworks on disclosing and managing the impacts on both water and biodiversity(e.g.TNFD39)are being developed as well as specific regulation exists on endemic biodiversity affected by the mineral ex

141、ploration in caves or greenfields for example.Land use and environmental regulation in Brazil determine the needs to limits the water consumption40 as well as compensating the direct impact on biomass and biodiversity by a set of measures,from financial compensation to maintaining environmental prog

142、rams and protecting forest areas.Companies are required to perform comprehensive studies on the impacts before filing and obtaining the required environmental licenses and present mitigation and rehabilitation plans for the affected biodiversity41.Human RightsThere are still significant human rights

143、 challenges,particularly in relation to the rights of local communities and workers42.This includes issues such as resettlement,indigenous peoples rights,forced labor and poor working conditions,specially indirectly on suppliers,and others.The Brazilian Constitution43 and the Brazilian Labor Law44 4

144、5 are the main legislation that regulates human rights46 in the mining sector in Brazil and standards such as the UNGP(United Nations Guiding Principles on Business and Human Rights)47 are paramount in establishing the adequate policies and planning and executing the appropriate due diligences to co

145、mply with the threats48.The risks change along the lifecycle of a mining operation and other actions are effective communication channels with local communities and other stakeholders to address their concerns and build trust as well as working with suppliers and contractors to ensure that responsib

146、le labor practices are followed throughout the supply chain.ESG JourneyOn the journey towards a more sustainable mining,some challenges include properly organizing and utilizing the ESG data intelligence and extracting value through data quality the sector has after years of relevant environmental a

147、ssessments and plans,reporting systems and transparency to the various stakeholders,allowing for proper analysis and decisions49.37 BP 202238 ICMM 201939 TNFD s.d.40 Planalto 199741 Planalto 198142 ICMM 202243 Brazilian Federal Constitution 198844 Planalto 194345 Normas Legais 202146 Planalto 201847

148、 Business&Human Rights Resource Centre 202348 ICMM 201249 Responsible Mining Foundation 202221Brazil Country Mining Guide-2023After the environmental disasters,IBRAM led an unique initiative,as a response to the society,organizing an event with more than 200 representatives of the sector to discuss

149、the future of mining.It resulted in a Commitment Letter from IBRAM,in which the sector assumed to be committed to a deep transformation in its relationships with people and nature.The document laid the groundwork for the ESG Agenda and the sectors commitments in 12 fields,were turned into working gr

150、oups with the purpose of discussing industry practices,defining measures and improvement goals,as well as disseminating best practices.ESG driverWorking Groups EMitigation of environmental impactsWaterEnergyWasteSHealth and Occupational safetyDiversity and inclusionRelationship with communitiesDevel

151、opment of territoriesGProcess SafetyDams and StructuresCommunication and ReputationInnovation22Brazil Country Mining Guide-202353 Law N.8.001/1990,Article 210 TaxationIn Brazil,mining activities receive the same tax treatment applied to other economic activities.Mining exploration and exploitation o

152、perations are subject essentially to regular federal and state corporate tax regimes.However,there is also a royalty levied on mining activities on the exploration and the financial return of the exploitation of mineral resources,known as Compensation for Exploitation of Mineral Resources(CFEM),and,

153、in some of the Brazilian States,a state tax levied upon mineral production named as TFRM(Control,monitoring and supervision of research activities,mining,exploration and exploitation of mineral resources fee).CFEMThe royalty is calculated over the amount of net revenue obtained in the sale of the mi

154、neral product.Net revenue results from the sale of the mineral product minus taxes(ICMS,PIS and COFINS)due in the commercialization53.CFEM is also due when the mineral had been used by the mining companies in their production process instead of being sold.In this context,CFEM calculation basis is:i)

155、the current price of the mineral good,or its similar,in the local,national or international market,or ii)the reference value,defined from the value of the final product the respective beneficiation process.MINERAL PRODUCTCFEM RATE(%)IRON ORE3.5BAUXITE,MANGANESE ORE,NIOBIUM AND ROCK SALT3.0DIAMOND AN

156、D OTHER MINERAL SUBSTANCES2.0GOLD1.5ROCK,SAND,GRAVEL AND OTHER MINERAL USED IN CIVIL CONSTRUCTION;ORNAMENTARY ROCKS;MINERAL ANDTHERMAL WATERS1.0Table 4:Mineral product rate23Brazil Country Mining Guide-202354 Law N.19.976/2011 MG,Law N 7.591/2011-PA,Law N 1.613-AP,Law N 4301/2012-MS,Law N.20.942/202

157、0-GO and Law N.11.991/2022 MTTFRMTRFM is a state tax applicable in Minas Gerais,Par,Amap,Mato Grosso,Gois and Mato Grosso do Sul,which is due when the entity performs research,exploration or exploitation of mineral resources.54 The TFRM calculation considers the tonnes of ore mined,on which is appli

158、ed a fixed BRL amount.These values are set annually by the States governments.Depending on the State,some mineral production is not subject to TFRM.Corporate income taxCorporate income tax is a federal tax charged on the companys book income,adjusted by certain additions(non-deductible expenditures)

159、and exclusions(non-taxable revenues)to reach the taxable income.The rate is 15 percent on taxable income,and a surtax of 10 percent on the net profit exceeding BRL60 thousand per quarter.The Social Contribution on Profits is also a federal tax charged at 9 percent of taxable income.The tax base tend

160、s to be similar to the Corporate Income Tax(IRPJ)tax base,although some specific adjustments may be required in some instances.Companies can elect two different regimes to calculate the taxable income:actual or presumed profit systems.Note that if the companys net revenue exceeds the limit of BRL 78

161、.000 thousand,the actual profit system is mandatory for the following tax exercise.Under the actual profit system,net taxable income corresponds to the companys net book profit,adjusted by some inclusions and deductions per Brazilian corporate tax legislation.Alternatively,the presumed profit is arr

162、ived by applying an 8 percent rate over the revenue.The total amount of capital gains,financial revenue and other revenue must be added to this presumed profit base to compute the corporate taxes.The corresponding tax rates are then applied over the presumed profit.In accordance with the Brazilian t

163、ax legislation,under the actual profit system,tax losses can be carried forward indefinitely against the profits of future periods,however the offset is limited to 30 percent of the current year taxable income.In particular,tax loss carry forwards will be forfeited,if,cumulatively,between the date o

164、f the record of the tax loss carry forward and the date of its utilization,the change of the companys control and the change of the companys activity occur.Tax deduction mining operationsThe Brazilian legislation allows for some expenses related to mining operations to be deducted for income tax pur

165、poses,which include:Exploration tax deductions:The expenses incurred during the exploration stage and when expanding the reserves of the mine may be capitalized and amortized over a minimum period of five years from the start-up date of the mine.Development tax deduction:The expenses incurred in the

166、 mines development may be capitalized and amortized over a minimum period of five years from the start-up of the mine.Depletion tax deductions:The amount corresponding to the decline in value of mineral resources deriving from their exploitation may be computed a cost or charge,in each period of ass

167、essment.The exhaustion quota is determined in accordance with the principles applying to asset depreciation,based upon the cost of acquisition or prospecting of mineral resources exploitation.The exhaustion quota calculation takes into consideration the volume of production in the year in relation t

168、o the mines known reserves,having as base on the cost of acquiring or obtaining the restated mining rights or,if the company is not the holder,the duration of the mines leasing contract.24Brazil Country Mining Guide-2023Transfer Pricing PolicyUntil 2022,Brazil did not follow OECD Transfer Pricing Ru

169、les.Commodities transactions were evaluated in accordance with specific transfer pricing methods when recognized on an international futures and commodities exchange:Quotation price on imports method(PCI)applies for inbound transactions and is based on the average daily price of goods or rights as r

170、ecognized on an international futures and commodities exchange,adjusted by the average premium.Quotation price on exports method(PCEX)applies for outbound transactions and is based on the average daily price of goods or rights as recognized on an international futures and commodity exchange,adjusted

171、 by average premium.The new OECD-based rules would have the following features:Any type of financial or commercial transaction would be in scope(whereas the current transfer pricing rules focus on tangible goods,services and rights).Commodities play an important role for the Brazilian economy,and it

172、 is only natural that they receive a specific treatment.The rigid application of specifically designed methods would be abandoned.Nevertheless,a clear preference for the comparable uncontrolled price(CUP),specific rules regarding the timing of the transactions and the requirement for commodity impor

173、ter and exporter to register transactional transfer pricing information with the tax authorities would appear to increase complexity in this key area The OECDs traditional transaction methods and transactional profit methods would replace the current transfer pricing methods applicable for non-commo

174、dities transactions(i.e.,transactional net margin method(TNMM)and profit split methods would be available).Comparability analysis,functional analysis and benchmarking would become part of the toolbox and would replace the current legally stipulated mark-ups and margins.Transactions involving intangi

175、bles as well as financial transactions would become transfer pricings topics,instead of being treated from a pure tax deductibility perspective).Business restructuring would be in the sphere of transfer pricing rules.More types of transfer pricing adjustments would become available(e.g.,“compensator

176、y”or“year-end”adjustments commonly associated with the transactional profit methods).Rulings,advance pricing agreements(APAs)and mutual agreement procedure(MAP)would become available.However,by the end of 2022,the Brazilian government issued a draft legislation to align Brazils unique transfer prici

177、ng system with the OECD Transfer Pricing Guidelines55.The new legislation must be approved by the Congress with 120 days to be kept in force.The biggest change would be the introduction of the arms length principle which is absent from the current transfer pricing rules.In addition,the changes would

178、 include new transfer pricing methods and documentation requirements,and considerable changes to the treatment of intangible assets,financial transactions and business restructuring.For fiscal year 2023,Brazilian taxpayers can choose between the current transfer pricing rules and the new OECD-based

179、rules,but beginning 1 January 2024,the application of the new OECD-based rules would be mandatory.55 Provisional Measure N 1152/202225Brazil Country Mining Guide-2023Tax incentive exploration profitAiming to accelerate economic growth in underdeveloped areas,principally in Brazils North and Northeas

180、t,the Federal Government implemented an incentive under which taxpayers,including mining companies,can receive either partial or complete tax exemption on income taxes.The tax exemption applies only to income from facilities operating in the designated regions and the benefits are available to compa

181、nies that have setup,modernization,extension and diversification projects in these regions.Eligibility for these incentives depends on Federal Government approval of an industrial project or the expansion of an existing industry.PIS and COFINSPIS/COFINS is collected under a cumulative and a non-cumu

182、lative regime(debt-credit system,similar but not identical to a value-added tax).Usually,opting between these regimes is locked with the choice with the assessment regime for Income tax.PIS/COFINS is assessed under a combined rate of 9.25 percent(non-cumulative)and 3.65 percent(for cumulative regime

183、)or non-cumulative regime,the combined rate of 9.25 percent can be used to calculate credits over the acquisition of some goods and services as well as rent.Export revenues are exempt from the PIS and COFINS.ICMS(State VAT)The ICMS is a state tax levied on the circulation of goods,inter-municipality

184、 and interstate transport and communications services.The payable amount on each operation must be stated on the corresponding outgoing invoice.The ICMS taxpayer is entitled to deduct the amounts levied on prior transactions with the same goods or on the acquisition of raw materials,intermediary mat

185、erial and packaging used by the establishment for manufacturing the taxed products from the amount payable(non-cumulative regime).ICMS is due on the dispatch of goods sent to entities within the state at the rate of 17 percent or 30 percent,depending on the state and on the good.Similar to PIS and C

186、OFINS,export revenues are exempt from ICMS.IPI(Tax on industrialized products)IPI is a non-cumulative federal tax levied on the import and manufacture of goods.In general terms,IPI does not apply to mining activities.Additional tax incentivesIn Brazil,wide ranges of government incentives are provide

187、d.Usually,incentives take the form of subsidized loan financing and of tax exemptions or reductions,rather than cash grants(mainly State tax ICMS incentives the so-called State Tax War).The concessions are presented to encourage economic development in Brazil,either on a regional or industry basis,b

188、y offering taxpayers the opportunity to invest part of their tax liability and by granting fiscal incentives for approved investments.Current scenario on Tax Reform Brazilian Tax Reform discussions will continue to progress in the legislative space in 2023 and following fiscal years.The current bill

189、 proposals are poised to introduce many significant changes which may impact business operations in the mining sector.Significant tax topics and proposed changes that may be implemented includes,among other matters:i)reform of the indirect tax system,ii)introduction of dividends taxation and iii)cha

190、nges in the corporate income tax rules(tax rates,use of tax losses,non-deduction of Interest on net Equity INE,etc).26Brazil Country Mining Guide-2023Brazilian Trade&Customs Tax EnvironmentIn order to import into or export from Brazil,a company is required to obtain a permit from the Internal Revenu

191、e Services called“RADAR”(“Register and Supervision of Foreign Trade”).The RADAR allows the company to carry out import and export activities and to have access to the Global Trade Single Window/Siscomex government trade systems.All import/export transactions are recorded and declared to the tax auth

192、orities through those systems.Accessing the Single Window or Siscomex,the importer and the exporter are able to apply for the import license and for the export record with the Foreign Trade Secretariat(Secex)and other related agencies,as well as,to start the customs clearance process.As previously m

193、entioned,the Imports into Brazil are subject to five different federal taxes(I)Import Duty;(II)IPI;(III)PIS-Import;(IV)Cofins-Import;(V)Merchant Marine Fee;and one State tax;ICMS.In relation to exports,as general rule,those operations are not taxed in Brazil,except for the external remittance of som

194、e controlled products.The main customs and global trade issues in Brazil are:Tariff Classification:the accurate tariff classification of imported goods is a basic element of the Brazilian Customs control doctrine.For the purpose of determining the classification of any product imported/exported in B

195、razil,it is necessary to consider the appropriate tariff heading of the subject merchandise under the Mercosur Harmonized Tariff Schedule(“NCM”);Customs Valuation:Brazil follows the WTO Agreement on Customs Valuation and,thus,when using the transaction value method of appraisal,some costs,if exclude

196、d from the cost base,shall be added to the price for valuation purposes,such as royalties and patent rights,among others.Currently,there are six different methods for determining the customs value of imported products into Brazil.Authorized Economic Operator(AEO)Program:the Brazilian AEO certifies i

197、nternational trade stakeholders which present low operational risks,concerning both cargo physical security and tax and customs compliance.Those certified as AEOs are able to benefit from several operational preferences,including being able to use the AEO seal,which states the companys reliability b

198、efore clients and authorities.Main Special Custom Regimes Recof-Sped:special customs regime that allows the qualified company to import or acquire goods in the local market to be subject to the manufacturing of exported products,with suspension of the payment of the taxes on the acquisition,which is

199、 converted to tax exemption after the proof of export.In case of selling the final product in the local market(instead of exporting),the suspended taxes must be collect,but without fines or interests.Drawback:similar to Recof-Sped,the Drawback regime also allows importing or acquiring goods in the l

200、ocal market to be subject to the manufacturing of exported products,with suspension of the payment of the taxes on the acquisition,which is converted to tax exemption after the proof of export.On the other hand,in case of selling the final product in the local market(instead of exporting),the suspen

201、ded taxes must be collect with fine and interests.Ex-Tarifrio:Ex-tarifrio is a temporary reduction of the Import Duty tax rate to a percentage of 0%or 2%,depending on the case,for capital or telecommunication goods where there is no similar item produced in Brazil.Recordkeeping:Records are required

202、to be kept by companies in Brazil that are conducting international business.Brazil Customs has a recordkeeping requirement of retention of five years from the date of import.Brazil also has an export file retention period requirement of five years from the date of export.27Brazil Country Mining Gui

203、de-202350 EPE 202251 EPE 202211 Power supply56,57Brazil is the biggest electricity market in South America.Of the total 1,231 TWh generated during 2021 in the region,Brazil alone accounted for 663 TWh,or 53 percent of the entire regions electricity generation.3The total installed capacity of the cou

204、ntry was 181 GW at the end of 2021,and is expected to have a steady increase in the short or medium term to meet the growing demand.As per the Electricity in the 2031 Brazilian Energy Plan(PDE 2031)the government estimates that a total installed capacity of 275 GW will be required by the end of 2031

205、,growing at an annual rate of 3.9 percent,to keep up with the rise in demand.During that period,the total consumption of electricity is also expected to go up from 563 TWh to 792TWh.The industrial sector will continue to be the largest consumer of energy in the country,with a volume of consumption i

206、n the order of 3 percent of the total generated energy.However,the rate of growth in industry consumption should be lower than the average,with around 3.2%,due to the improvement of the sectors efficiency and infrastructure utilization.Consumption by source has shown a reduction in the share of petr

207、oleum derivatives,sugarcane derivatives and firewood and charcoal over the ten-year period.Sources such as natural gas and electricity may increase its importance.In the case of industrial segments linked to infrastructure,such as non-ferrous metals and others in metallurgy(which includes aluminum),

208、cement and ceramics,the perspective is that their activities will grow more quickly in the first five years.Brazils generation capacity mix is largely dominated by hydropower,which accounted for nearly 57 percent of its total at the end of 2021.The next big contributor to the installed capacity is w

209、ind,with a share of 11.4 percent.Natural gas(8.9 percent)Biomass(8.6 percent),oil(4.2 percent),small hydro(3.0 percent),solar(2.6 percent),coal(1.8 percent),and nuclear(1.1 percent)are the other major sources of generation.But the protagonism of hydros is going to to decrease gradually in the next d

210、ecade since the country is changing its power mix.In addition of the increasing participation of wind,solar,biomass,natural gas sources that we have seen for the last decade,there is a very good expectation for the new renewables technologies such as offshore wind and hydrogen,as Brazil has an impor

211、tant potential to explore them.Brazil is one of the frontrunners in meeting the carbon-emission reduction targets.It has laid great emphasis on promoting the exploitation of renewable energy potential in the country.In 2021,the country generated 85 percent of its total electricity from renewable sou

212、rces.In addition to having vast hydroelectricity potential,Brazil also had has an estimated 20 GW in wind power potential in 2021 with 30.8 GW forecast by 2031.It is expected that solar will follow the same way,reaching at least 45.3 GW of installed capacity by 2031.Brazil is expected to invest near

213、ly US$19 billion in electricity infrastructure between 2021 and 2031,representing nearly 16 percent of the total expected investment of US$639 billion in the entire energy sector.Almost 81%of the total invested in electric infrastructure will be destined to generation projects,according to the gover

214、nments Brazilian Energy Plan(PDE 2031).The remaining percentages,while the rest will be in the field of transmission,which requires huge investment in order to integrate the new and upcoming distributed generation projects to guarantee the reliability of the power system.28Brazil Country Mining Guid

215、e-202352 Exame 202212 Infrastructure developmentAlthough the quality of Brazilian infrastructure has been a major barrier to economic expansion in Brazil,in the last years great progress has been made in various infrastructure projects to support economic growth and improve the quality of life for i

216、ts citizens.Some of the major investments include:Transport:construction of new highways and upgrading existing ones,as well as expanding the countrys rail network.Energy:expanding the countrys energy grid and upgrading existing power plants to support the growth of the renewable energy sector.Commu

217、nication:telecommunications infrastructure,including the expansion of broadband Internet access and the deployment of 5G networks.Water and Sanitation:water and sanitation infrastructure has been a priority in Brazil,with private and public sector investment in the expansion of the countrys sewage t

218、reatment systems and the construction of new dams to ensure a reliable water supply.One of the key reasons behind the poor state of the infrastructure is low public investment.Besides regulatory improvements,allowing an increase in the investments of the private sector,public investment in infrastru

219、cture has remained lower than the country needs.An estimate of National Confederation of Industry(CNI)indicates that only 1.57%of GDP was invested in infrastructure in the 2021,and in 2022 the Ministry of Infrastructures budget was the lowest percentage of GDP in 11 years of the historical series52.

220、The contribution it is not enough to guarantee maintenance of sector projects that already exist,according to experts.As a result,the IMD International Institute for Management Development Rankings on Basic Infrastructure has placed Brazil at 58th position among 63 countries.BNDES is the National Ba

221、nk for Economic and Social Development in Brazil,and it is one of the main sources of financing for infrastructure development in the country.BNDES provides financing for infrastructure projects through loans and investments,and it has invested billions of dollars in recent years.According to report

222、s,BNDES invested around$30 billion in infrastructure projects in 2019,with a focus on transport,energy,and communication infrastructure.The private sector has also invested significantly in infrastructure projects through public-private partnerships.For example,in 52 Exame 202229Brazil Country Minin

223、g Guide-20232019,the Brazilian government announced plans to invest around$126 billion in infrastructure projects over the next five years.This includes investments in transport,energy,water and sanitation,and communication infrastructure.However,recent announcements of the President related to chan

224、ging new regulatory framework related to these sectors,has concerned the market.AIRPORTSConcessions(3)PPP-Regional AirportsConcessionsRebbingTOTALTOTALPort Terminal LeasesConcessionsPrivatizationsForeseen RenewalsPORTSRAILWAYSHIGHWAYSAs for future projections,figure 7 shows the infrastructure transp

225、ort agenda,with an expectation of an increase in 45 assets,including privatizations,and concessions.Figure 7:2023-2026 Infrastructure Agenda 8th Round(GIG and SOU)Viracopos(Rebidding)CODESA,CDC,CDP,CODERN and CDRJFCA and Rumo Malaha SulBR-040/DF-GO-MG(450,9km)4 Centro-Nortes lot-BNDS(2.570km)Rio Gra

226、nde do Suls Lots-BNDS(667,44km)BR-262/MG-Rota Zebu(440,2km)Parts under Restructuring by BNDS(1.600km)BR-060/153/040/GO/DF-Rota Pequi(315km)Nordestes Lots-BNDS(2.471km)BR-060/153/262/GO/MG-Rota Sertaneja(527km)BR-040/GO/MG-Rota dos Cristais(594km)BR-158/155/MT/PA(1.135,1kn)BR-163/267/MS-Rota Pantanei

227、ra(1.094km)BR-135/316/MA(437,7km)SAnta Catarinas Highway(3.153,37km)SAnta Catarinas Highway(3.153,37km)Fluminenses Freeway(120km)TOTAL:18.048,96kmAmazonas Bloc-8Waterway Lagoa Mirim and acess Channel to ParanaguRumo Malaha Oeste11 Airports5 PORTS,1 WATERWAY,1 ACESS CHANNEL AND 11 TERMINALSPAR03,TGS0

228、2,STS10,STS53,PAR03,STS10,POA11,MAC15,SSZ33E,POA02 and RIG10FerrogroFIOL II and III +FICO I and II30Brazil Country Mining Guide-202313 Labor relations and employment situationBrazilian employment relationship is regulated by the Consolidation of Labor Laws(CLT),the Brazilian Federal Constitution and

229、 other ancillary norms.This relationship is also regulated by rules set forth under Collective Bargaining Agreements which are negotiated between employers and unions representing employees,even if they are not unionized.Unions in Brazil have a key role setting forth rights related to employees bene

230、fits,such as annual salary increase and profit sharing.53 Since November 2017,direct negotiations between employers and employees were given the same status of Collective Bargaining Agreements(this type of negotiation is only allowed to employees who hold university degrees and receive a monthly bas

231、e salary equal to or higher than twice the maximum benefit paid by Social Security).53The unemployment rate for Q3 2022 stood at 8.7%,as informed by the IBGE(Brazilian Institute of Geography and Statistics).It is the lowest level since 2015,which shows that the Country is returning to the pre-pandem

232、ic scenario.However,this drop was accompanied by continued growth of informal employment(self-employed workers without Legal Entity Register and employees without a formal contract).54 55Due to the emergence of new technologies and changes in production chains,Brazil continues to face a shortage of

233、skilled labor.According to the National Confederation of Industry(CNI)Map of Industrial Work(2022-2025),in the next three years Brazil must qualify 9.6 million people in industrial occupations.Technological evolution has also led to the growth of technical and Bachelor-level occupations,which reinfo

234、rces investment by industry and companies in Corporate Education.56 The shortage of skilled labor was also intensified by competition for professionals in the international market.Covid-19 has disrupted the flow of international talent.With the growth of remote work opportunities,mining companies ha

235、ve been competing for professionals with companies from different sectors,mainly technology companies looking for highly specialized professionals.Mining companies need to illustrate modern environments and play an integral role in society in order to attract young and specialized professionals.57 F

236、urthermore,flexibility and purpose are key for those seeking jobs in the market.53 International Comparative Legal Guides 202254 Instituto Brasileiro de Geografia e Estatstica 202255 Folha de So Paulo 202256 Portal da Indstria 202231Brazil Country Mining Guide-2023Both ESG and technology are current

237、ly impacting jobs in the sector.Overall pressure for ESG to become a priority with major players selling some of their assets,investing not only on social initiatives,but also more awareness and consideration of environmental impacts now and for future generations.Business decisions no longer aim to

238、 prioritize the safety of people but to also think of the environment,integrity and social legacy As for the workforce,non-technical capabilities,soft skills and decision-making capabilities become even more important since routine and tasks-based jobs have become more automatized.An employer who is

239、 ESG conscious and prioritizes the environmental and social agendas will be more appealing to the workforce as it fits their purpose in life.When considering talents,roles within the industry are perceived as dangerous and/or part of the global warming crisis.Therefore,some migrate to other industri

240、es which appear to be cleaner.The cost to compete for talent in the open market tends to be higher than the cost of developing skills internally.The stereotype of being bad for the environment is a reason mining is less attractive for younger workforce population.With shortage of talent still an iss

241、ue,companies are working on developing core and soft skills,investing on training to overcome this problem over time.The mining sector is one of the most male-dominated industries in the world,as is the case in Brazil,where male workers represent 88%of the workforce.Most female professionals working

242、 in the sector are still in administrative and support positions,with low representation in technical and operational positions.On the other hand,the female population has a higher proportion of advanced educational level than the male population.This is a favorable indicator for the tendency to red

243、uce the gender pay gap and to increase the female population in higher qualification positions.58 Workforce today is impatient demanding workers to accept individual differences and embrace culture differences,committing to transformation and to foster diversity and inclusion within the organization

244、.Recent tragedies demanded and forced transformation to happen.With negative media attention,companies have efforts underway to bring back dignity for affect communities and to focus more in the social dimensions,learning from errors from the past.57 bnamericas 202258 Intergovernmental Forum of Mini

245、ng 202232Brazil Country Mining Guide-202314 Inbound and outbound investmentForeign direct investment(FDI)has faced an increase around 8%from 2014 to 2017 in Brazil,peaking at US$67,5 billion in 2017.Post 2017,the scale of FDI has dropped as it attracted US$59,8,65,38,28,3 and 50,6 billion during 201

246、8,2019,2020 and 2021,respectively.According to the Brazilian Central Bank,the total FDI in Brazil is expected to reach US$85,1 in 2022.The percentage contribution of FDI towards the GDP of Brazil has been around 3 percent in recent years and is expected to reach contributions around for 4%in the sho

247、rt-term.The countrys inward direct investments have been outpacing its foreign outward investment,as shown in Figure 8.59 Banco Central 202360 IBRAM 2022Figure 8:Inward and outward direct investments Source:Banco Central78.269.237.846.490.62.022.8(3.5)16.230.7103050709011020182019202020212022eInward

248、 direct investmentOutward direct investment33Brazil Country Mining Guide-2023According to the previous Minister of Mines and Energy,mining can significantly help Brazil to attract foreign capital in large volumes in the coming years and double the sectors share in GDP,from 2.4%to 5%.The Brazilian mi

249、neral sector gained a new financial network,uniting public and private organizations to help improve the mining business environment.60Figure 9:Mineral sector investment estimates in US$billionsSource:IBRAMTable 4:Main investments estimates breakdown in US$billionsSource:IBRAM28.352.547.055.066.775.

250、063.753.618.019.527.538.041.340.450.02007-20112008-20122009-20132010-20142011-20152012-20162013-20172014-20182017-20212018-20222019-20232020-20242021-20252022-20262023-2027MAIN INVESTMENTS ESTIMATES BREAKDOWN2023-2027Copper4.474,30Iron ore16.921,90Zinc113,00Bauxite4.962,00fertilizers5.222,00Gold2.84

251、7,00Nickel2.338,00Manganese225,00Other substances1.933,00Logistics4.448,12Socioenvironmental6.559,00TOTAL50.043,33As figure 9 shows,the expectation of mineral sector investments is projected to reach US$50 billions up to 2027.34Brazil Country Mining Guide-202315 Key commodities Production and reserv

252、es61 62Brazil is a leading producer of minerals producing and marketing nearly 70 mineral commodities.The mining industry in Brazil not only contributes a significant part to the countrys annual gross domestic product(GDP),but is also responsible for the countrys consistent trade surplus.Brazil is t

253、he worlds largest producer of niobium and second largest of iron ore.Further,it is the third largest producer of bauxite and fifth largest producer of tin.In addition,Brazil is an importer of mineral coal,potash,copper,zinc,sulfur,etc.61 USGS 202262 ANM 2023Table 5:Expected productionSource:ANM Tabl

254、e 6:Classification of Brazils mineral production and reserves compared with the worlds totalSource:Mineral Commodity Summaries 2022-US Geological SurveyORESPRODUCTION ON 2021 (1,000)PRODUCTION ON 2021 (1,000)CHANGE(%)AGGREGATES321,698849,00026IRON273,330820,000122BAUXITE16,22538,00023MANGANESE5973,0

255、0015PHOSPHATE3,2342,50039COPPER33560050NICKEL7510043ZINC15935023NIOBIUM11212033%GOLD0.0810.09544MINERAL%BRA VS.WORLD PRODUCTIONRANKING POSITION%BRAZIL VS.WORLD RESERVESRANKING POSITIONBAUXITE8.2%3rd8.4%4thCOPPER1.6%14th1.3%13thGOLD2.6%13th4.4%6thIRON ORE15%2nd17.6%3thKAOLIN2.7%9th23%2ndMANGANESE2%9n

256、d18%3thNIOBIUM88%1st94.1%1stTANTALITE22.3%2nd42.5%2stTIN7.3%5th8.5%5rdZINC1.25%12th1.2%6th35Brazil Country Mining Guide-2023Table 7:Mineral production:Global position of BrazilSource:IBRAM Source:USGSEXPORTER(GLOBAL PLAYER)EXPORTERSELF-SUFFICIENTIMPORTER/PRODUCEREXTERNAL DEPENDENCYNiobium(1st)Nickel

257、LimestoneCopperMetallurgical CoalIron ore(2nd)MagnesiteIndustrial DiamondDiatomiteSulphurManganese(2nd)KaolinTalcPhosphatePotassiumTantalite(2nd)TinTitaniumZincRare EarthsGraphite(3rd)VermiculiteTungstenBauxite(2nd)ChromiumOrnamental rocks(4th)GoldGold production(in tons)Iron Ore production(in milli

258、on tons)Source:USGSNote*:Usable Ore80859078803,2643,3093,2683,0273,0004.4%4.4%4.8%4.5%4.4%20172018201920202021Brazil productionWorld productionBrazil%share of global reserve4254604053883802,4302,4602,4502,4702,60013.5%18.8%17.1%18.9%18.9%Brazil productionWorld productionBrazil%share of global reserv

259、e2017201820192020202136Brazil Country Mining Guide-2023Source:USGSBauxite production(in million tons)Niobium production(in thousand tons)Source:USGSBrazil productionWorld productionBrazil%share of global reserve2017201820192020202138.132.431.931.032.03073403873913918.7%8.7%8.7%9.0%8.4%Brazil product

260、ionWorld productionBrazil%share of global reserve201720182019202020215870896079677997688895.3%80.4%85.9%90.0%90.0%Source:USGSCopper production(in thousand tons)Brazil productionWorld productionBrazil%share of global reserve2017201820192020202138438536335333520,00020,40020,40020,60021,0001.4%1.4%1.3%

261、1.3%1.3%37Brazil Country Mining Guide-2023Brazils share of key commodities in global reserves Given its diverse geological environment,Brazil is considered to have one of the largest mineral potential in the world.Brazil has significant reserves of several important commodities such as gold(2,400 me

262、tric tons),iron ore(34,000 million metric tons),nickel(16 million metric tons)and potash(2,300 thousand metric tons).Minas Gerais,Para,and Goias are the most mineral-rich states in Brazil.The country holds the largest reserves in the world of niobium,followed by Canada.Table 8,below provides the res

263、erve level of key commodities in Brazil and the countrys share in the global reserve level,at the end of 2021.Table 8:Reserve level of key commodities in Brazil,end of 2021Note*:Data from 2018Source:USGSMINERALBRAZIL RESERVE LEVELGLOBAL RESERVE LEVELSHARE OF BRAZIL IN GLOBAL RESERVEGOLD(METRIC TONS)

264、2,40054,0004.44%IRON ORE-CRUDE(THOUSAND METRIC TONS)34,000180,00018.89%NICKEL(METRIC TONS)16,000,00095,000,00016.84%POTASH(THOUSAND METRIC TONS)2,3003,500,0000.07%NIOBIUM(METRIC TONS)16,000,00017,000,00094.12%RARE EARTHS(METRIC TONS)21,000,000120,000,00017.50%COPPER*(THOUSAND METRIC TONS)11,212800,0

265、001.40%38Brazil Country Mining Guide-202316 IBRAM Associated Mining Companies1.3A MINING S.A.2.ALCAN ALUMINA LTDA 3.ALCOA WORLD ALUMINA BRASIL LTDA 4.AMG BRASIL S/A 5.ANGLO AMERICAN MINERIO DE FERRO BRASIL S/A 6.ANGLOGOLD ASHANTI CORREGO DO SITIO MINERACAO S/A 7.APPIAN CAPITAL BRAZIL-ATLANTIC NICKEL

266、 MINERACAO LTDA 8.ARAGUAIA NIQUEL METAIS LTDA 9.BRASIL S/A 10.AURA MINERAIS PARTICIPACOES LTDA.11.AVG EMPREENDIMENTOS MINERARIOS S/A 12.BAHIA MINERACAO S/A 13.BAUMINAS MINERACAO LTDA 14.BEMISA HOLDING S.A.15.BHP BILLITON BRASIL LTDA 16.BRAZAURO RECURSOS MINERAIS S.A.17.CIA DE FERRO LIGAS DA BAHIA FE

267、RBASA 18.CMOC BRASIL MINERACAO INDUSTRIA E PARTICIPACOES LTDA 19.COMPANHIA BRASILEIRA DE ALUMINIO 20.COMPANHIA BRASILEIRA DE LITIO 21.COMPANHIA BRASILEIRA DE METALURGIA E MINERACAO-CBMM 22.COMPANHIA MINERADORA DO PIROCLORO DE ARAXA-COMIPA 23.COPELMI MINERACAO LTDA 24.EMBU S A ENGENHARIA E COMERCIO 2

268、5.FIDES MINING MINERADORA S/A 26.GERDAU ACOMINAS S/A 39Brazil Country Mining Guide-202327.GSM MINERACAO LTDA 28.IAMGOLD BRASIL PROSPECCAO MINERAL LTDA 29.IMERYS RIO CAPIM CAULIM S/A 30.KINROSS BRASIL MINERACAO S/A 31.LARGO VANADIO DE MARACAS S.A 32.LUNDIN MINING CORPORATION 33.MAGNESITA MINERACAO S/

269、A 34.MINERACAO AURIZONA S/A 35.MINERACAO BELOCAL LTDA 36.MINERACAO BRASILEIRA REUNIDAS S/A-MBR 37.MINERACAO CARAIBA S/A 38.MINERACAO JUNDU LTDA 39.MINERACAO MOEMA LTDA 40.MINERACAO MORRO DO IPE S/A 41.MINERACAO MORRO VERDE LTDA 42.MINERACAO RIO DO NORTE S/A 43.MINERACAO SERRAS DO OESTE EIRELI 44.MIN

270、ERACAO TABOCA S/A 45.MINERACAO USIMINAS S/A 46.MINERAL DO BRASIL LTDA 47.MINERITA MINERIOS ITAUNA LTDA 48.MOSAIC FERTILIZANTES P&K LTDA 49.NACIONAL DE GRAFITE LTDA 50.NEXA RECURSOS MINERAIS S/A 51.PEDRAS CONGONHAS EXTRACAO ARTE INDUSTRIA LTDA 52.SAFM MINERACAO LTDA 53.SALITRE FERTILIZANTES LTDA.54.S

271、AMARCO MINERACAO S/A 55.SERABI MINERACAO S/A 56.SERRA VERDE PESQUISA E MINERACAO LTDA 40Brazil Country Mining Guide-202357.SIGMA MINERACAO S.A.58.SOCIEDADE EXTRATIVA DOLOMIA LIMITADA 59.SOMAR-SOCIEDADE MINERADORA LTDA 60.SUL AMERICANA DE METAIS S/A 61.TAQUARIL MINERACAO S/A 62.VALE S/A 63.VALLOUREC

272、MINERACAO LTDA 64.VOTORANTIM CIMENTOS S/A 65.YAMANA DESENVOLVIMENTO MINERAL S/A 66.YARA BRASIL FERTILIZANTES S/A IBRAM Associated Mining Companies41Brazil Country Mining Guide-2023KPMG Global Mining practiceFurther insight from KPMGThe mining industry faces a host of challenges,particularly regulato

273、ry changes and geopolitical risks.Stakeholders are calling for environmental and social concerns to be treated as top priorities.To address these challenges,mining and exploration companies need to be agile and flexible.KPMG professionals have worked with companies across the mining life cycles,from

274、 exploration and evaluation through to closure.Our specialists can help you to reduce costs,integrate digital tools and technologies,manage your asset portfolio and assess risks including those posed by climate change.We can help you to create a strategy for climate risk and decarbonization.KPMG fir

275、ms work side by side with mining organizations to help them meet both the practical,day-to-day challenges of their business,as well as develop long-term strategies for growth.For more information,visit https:/ 42Brazil Country Mining Guide-2023Agencia Brasil.(2023).Retrieved January 2023,from https:

276、/.br/economia/noticia/2023-01/haddad%3A%20diz-que-congresso-deve-voltar-abracar-reforma-tributariaANM.(2023,Jan 26).Retrieved Feb 03,2023,from https:/ Q2IiwidCI6ImEzMDgzZTIxLTc0OWItNDUzNC05YWZhLTU0Y2MzMTg4OTdiOCJ9&pageName=ReportSection99c5eaca1c0e9e21725aB3.(2023,Feb 02).Retrieved Feb 02,2023,from

277、https:/.br/pt_br/produtos-e-servicos/negociacao/renda-variavel/empresas-listadas.htmBanco Central.(2023,January).Retrieved from https:/www.bcb.gov.br/estabilidadefinanceira/historicocotacoesBanco Central.(2023).Retrieved Jan 31,2023,from https:/www.bcb.gov.br/estatisticas/historicosetorexternoBanco

278、Central do Brasil.(2022).Retrieved Jan 31,2023,from https:/www3.bcb.gov.br/sgspub/consultarvalores/consultarValoresSeries.do?method=consultarValoresBanco Central do Brasil.(2023,Jan 26).Retrieved Jan 31,2023,from https:/www.bcb.gov.br/content/statistics/externalsectorstatistics_prev/202301_External_

279、sector_statistics_text.pdfbnamericas.(2022,May 30).bnamericas.Retrieved Jan 26,2023,from https:/ Feb 02,2023,from https:/ Federal Constitution.(1988).Retrieved Jan 26,2023,from http:/www.planalto.gov.br/ccivil_03/constituicao/constituicao67.htmBusiness&Human Rights Resource Centre.(2023,Feb 02).Retr

280、ieved Feb 02,2023,from https:/www.business-humanrights.org/pt/temas-relevantes/un-guiding-principles-on-business-human-rights/EIU.(2022,April 20).Retrieved Jan 26,2023,from https:/ Journal.(2011,Feb 10).Brazil-Not a Country for Beginners.EPE.(2022,Aug).Retrieved Feb 1,2023,from https:/www.epe.gov.br

281、/pt/publicacoes-dados-abertos/publicacoes/anuario-estatistico-de-energia-eletricaEPE.(2022).Retrieved Feb 01,2023,from https:/www.epe.gov.br/pt/publicacoes-dados-abertos/publicacoes/plano-decenal-de-expansao-de-energia-2031Fraser Institute.(2022,Apr 12).Retrieved Jan 26,2023,from https:/www.fraserin

282、stitute.org/categories/miningFraser Institute.(2022,Sep 8).Retrieved Jan 1,2023,from https:/www.fraserinstitute.org/studies/economic-freedom-of-the-world-2022-annual-reportFundao Getulio Vargas.(2021).Registro Publico de Emissoes.Retrieved January 2023,from https:/registropublicodeemissoes.fgv.br/pa

283、rticipantesG1.(2023,Jan 16).Retrieved Jan 26,2023,from https:/ Jan 27,2023,from https:/www.ibge.gov.br/estatisticas/economicas/contas-nacionais/9300-contas-nacionais-trimestrais.html?edicao=33060&t=resultadosIBGE.(2022).Retrieved Feb 02,2023,from https:/www.ibge.gov.br/explica/desemprego.phpIBGE.(20

284、23,Jan 27).Retrieved Jan 27,2023,from https:/www.ibge.gov.br/apps/populacao/projecao/index.htmlIBGE.(2023).Retrieved Jan 31,2023,from https:/www.ibge.gov.br/estatisticas/economicas/precos-e-custos/9256-indice-nacional-de-precos-ao-consumidor-amplo.html?=&t=series-historicasIBRAM.(2019).An Update of

285、the Brazilian Environmental Laws.Braslia:IBRAM.IBRAM.(2022,Nov 29).Retrieved Feb 03,2023,from https:/ibram.org.br/noticia/mineracao-podera-atrair-investimentos-expressivos-para-o-brasil-diz-ministro-sachsida/ICMM.(n.d.).Retrieved Feb 02,2023,from https:/ 18).Retrieved Feb 02,2023,from https:/ 18).Re

286、trieved Feb 02,2023,from https:/ 05).Retrieved Feb 02,2023,from https:/ Feb 02,2023,from https:/ Country Mining Guide-2023Instituto Brasileiro de Geografia e Estatstica.(2022,Dec).Retrieved from IBGE:www.ibge.gov.brInstituto Brasileiro de Geografia e Estatstica.(2022,Jul 29).IBGE.Retrieved Jan 26,20

287、23,from https:/agenciadenoticias.ibge.gov.br/en/agencia-news/2184-news-agency/news/34503-taxa-de-desocupacao-cai-para-9-3-no-segundo-trimestre-2Intergovernmental Forum of Mining.(2022,Jun 14).igfmining.Retrieved Jan 26,2023,from https:/www.igfmining.org/women-mining-workforce-future/International Co

288、mparative Legal Guides.(2022,Mar 25).ICLG.Retrieved Jan 26/01/2023,2023,from https:/ 11).Retrieved Jan 31,2023,from http:/www.ipeadata.gov.br/ExibeSerie.aspx?serid=38367Jornal Folha de So Paulo.(2022,Oct 28).Folha de So Paulo.Retrieved Jan 26,2023,from https:/.br/internacional/en/business/2022/10/un

289、employment-in-brazil-drops-to-87-and-informal-work-hits-record.shtmlMDIC.(2023,Jan 9).Retrieved Jan 31,2023,from https:/balanca.economia.gov.br/balanca/publicacoes_dados_consolidados/pg.htmlMinistrio de Minas e Energia.(2023).MME.Retrieved Jan 09,2023,from https:/www.gov.br/mme/pt-brNational Congres

290、s.(n.d.).Retrieved Jan 26,2023,from https:/www.congressonacional.leg.br/institucional/atribuicoesNormas Legais.(2021,Nov 12).Retrieved Feb 02,2023,from https:/.br/legislacao/In-2-2021.htmOECD.(2022).Governana regulatria no setor de minerao no Brasil,.Paris:OECD Publishing.Retrieved from https:/www.o

291、ecd-ilibrary.org/sites/f3bbedcd-pt/index.html?itemId=/content/component/f3bbedcd-pt#Planalto.(1943,May 01).Retrieved Feb 02,2023,from https:/www.planalto.gov.br/ccivil_03/decreto-lei/del5452.htmPlanalto.(1967,Feb 28).Retrieved Feb 02,2023,from http:/www.planalto.gov.br/ccivil_03/Decreto-Lei/Del0227.

292、htmPlanalto.(1981,Aug 31).Retrieved Feb 02,2023,from https:/www.planalto.gov.br/ccivil_03/leis/l9433.htmPlanalto.(1989,Jul 18).Retrieved Feb 02,2023,from https:/www.planalto.gov.br/ccivil_03/leis/L7804.htm#art3Planalto.(1997,Jan 08).Retrieved Feb 02,2023,from https:/www.planalto.gov.br/ccivil_03/lei

293、s/l9433.htmPlanalto.(2017,Dec 26).Retrieved Feb 02,2023,from http:/www.planalto.gov.br/ccivil_03/_ato2015-2018/2017/lei/l13575.htmPlanalto.(2018,Nov 21).Retrieved Feb 02,2023,from https:/www.planalto.gov.br/ccivil_03/_ato2015-2018/2018/decreto/d9571.htmPlanalto.(2020,Sep 30).Retrieved Feb 02,2023,fr

294、om https:/www.planalto.gov.br/ccivil_03/_ato2019-2022/2020/lei/l14066.htmPlanalto.(2022,May 19).Retrieved Feb 02,2023,from https:/www.planalto.gov.br/ccivil_03/_ato2019-2022/2022/decreto/d11075.htmPortal da Industria.(2022).Retrieved jan 26,2023,from https:/ da Indstria.(2022,May 16).Portal da Indst

295、ria.Retrieved Jan 26,2023,from https:/.br/noticias/trabalho/mapa-do-trabalho-2022-2025/Responsible Mining Foundation.(2022).Retrieved Feb 02,2023,from https:/2022.responsibleminingindex.org/resources/RMI_Report_2022-Summary_EN.pdfSTF.(2019,Jan 25).Retrieved Jan 26,2023,from https:/portal.stf.jus.br/

296、textos/verTexto.asp?servico=sobreStfConhecaStfInstitucionalTCFD.(2017,Jun).Retrieved Feb 02,2023,from https:/assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdfTNFD.(n.d.).Retrieved Feb 02,2023,from https:/tnfd.global/U.S.Energy Information Administration.(2022).Retrieved Feb 2023,20

297、23,from https:/www.eia.gov/international/data/world/electricity/electricity-generation?pd=2&p=00000000000000000000000000000808&u=0&f=A&v=mapbubble&a=-&i=none&vo=value&vb=146&t=R&g=00000000000000000000000000000000000000000000000001&l=249-&l=48-080006041000200000United Nations.(2022).Retrieved Jan 26,

298、2023,from https:/www.un.org/development/desa/pd/content/World-Population-Prospects-2022USGS.(2022,Jan 31).Retrieved Feb 01,2023,from https:/pubs.er.usgs.gov/publication/mcs2022World Bank.(2022).Retrieved Jan 27,2023,from https:/data.worldbank.org/indicator/NY.GDP.MKTP.CD?most_recent_value_desc=trueW

299、orld Bank.(2022).Retrieved Jan 31,2023,from https:/data.worldbank.org/indicator/NE.TRD.GNFS.ZS?locations=BRMining Leadership contactsTrevor Hart KPMG InternationalGlobal Head of MiningE:.auKPMG in Brazil contactsManuel FernandesEnergy and Natural Resources Latin America LeaderE:.brAnderson DutraEner

300、gy and Natural ResourcesBrazil LeaderE:.brRicardo MarquesMetals and Mining Brazil Segment LeaderE:.brPaulo Guilherme CoimbraInfrastructure and Energy and Natural Resource DA&S Leader E:.brLcia RabeloInfrastructure and Energy and Natural Resource DA&S Senior ManagerE:.brOther ContactsDaniel Ricica2 P

301、artner KPMG CanadaE:dricicakpmg.caContact us 2023 KPMG Consultoria Ltda.,a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.P

302、rinted in Brazil.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.Although we endeavor to provide accurate and timely information,there can be no guarantee that such information is accurate as of the date

303、it is received or that it will continue to be accurate in the future.No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.Design by Gaud Creative T.br/kpmgbrasil