Regulatory Governance in the Mining Sector in Brazil
Mining plays a crucial role in Brazil’s economy. Nonetheless, the efforts and resources
devoted to regulatory quality in the sector, including the enforcement of rules, have
not always been commensurate. This report identifies the gaps, barriers, implementation
flaws and inefficiencies in the regulatory framework of the mining sector in Brazil.
It takes stock of the recent reforms in the mining sector in Brazil, identifies areas
that pose the greatest challenges for effective regulation in mining. It also describes
the reforms that created the National Mining Agency of Brazil, its governance arrangements
and its current regulatory practices. These are assessed against OECD principles in
regulatory policy and mining regulation, as well as against country experiences from
Australia, Chile, and Mexico. Finally, recommendations are provided to support further
Published on February 02, 2022Also available in: Portuguese
Brazil has taken steps to improve the performance of the mining sector in the country. The creation of the National Mining Agency and the revision of the regulatory framework are two of the main changes to the mining institutional and normative framework in the last 60 years.
Brazil would benefit from granting ANM more independence by allocating the right human and financial resources to the agency.
Regulatory enforcement and inspections activities could be revamped to incorporate the use of evidence, ICTs, and risk-based approaches.
Brazil would benefit from fostering the systematic collaboration and co-ordination between the federal and sub-national administrations (states and municipalities) to ensure regulatory coherence, reduce overlaps and regulatory gaps, and to use resources more efficiently.
ANM could lead the development and implementation of a detailed policy on administrative simplification and burden reduction for all government formalities in the mining sector, with an emphasis on licensing