Yesterday in an official ceremony that had the massive presence of investors and of Government municipal, state and federal authorities, the Minister of Mines and Energy Edison Lobão, together with the Brazilian President Dilma Rousseff, have formalized the submission of the bill of law containing the main proposed changes to the present Brazilian Mining Code to the Brazilian Congress.

Notwithstanding the text of the aforementioned bill of law was not yet made available to the public, both President and the Minister confirmed that the mining royalties – the Compensação Financeira pela Exploração de Recursos Minerais - CFEM will be modified in order to comprise a maximum rate of 4% observed a new calculation basis based on the gross revenues of mining companies.

The creation of a new regulatory agency - the Agencia Nacional de Mineração (ANM) to replace the Departamento Nacional de Produção Mineral (DNPM) was also confirmed together with the creation of the National Council of Mineral Policy (Conselho Nacional de Politica Mineral) that shall be responsible to outline the mining sector cornerstones.

The Minister informed that the mining prospecting and concession rights shall be granted to the companies by means of a single process observing an initial term of 40 years, observed a renewal term of additional 20 years.

The President also confirmed most of the previously announced changes such as the plans to have bid processes to the new mining areas, the obligation of investors to have a minimum invested amount in mining projects and the proposal to create a simplified process to speed up the access to mining areas. In her speech, the President ensured that the rights already granted in former concessions and ongoing projects will be respected by the new mining rules and that specific transition rules are also part of the Bill of Law.