en.Wedoany.com Reported - Budget constraints imposed by the federal government are jeopardizing the core functions of Brazil's National Mining Agency (ANM), directly impacting the supervision of dams and mining waste piles, combating illegal mining, royalty collection, and the approval of new mining projects.
The National Mining Agency manages over 255,000 active mining title processes nationwide, and is also responsible for supervising mining facilities, collecting the Financial Compensation for Mineral Exploration (CFEM), and authorizing new projects in the sector. However, resource constraints have led to revised plans and reduced technical field trips, making on-site supervision difficult to carry out effectively.
The most immediate impact is the suspension of inspections originally scheduled for 2026. If the current budget situation persists, 43 dams and 18 mining waste piles will not undergo technical inspections as planned. The agency notes that some of these facilities require continuous monitoring due to their potential social, environmental, and economic impacts.
Budget constraints have also affected the approval of final research reports and Economic Utilization Plans (PAEs), a critical step in transforming mineral discoveries into production operations. Due to reduced operational capacity for inspections and technical assessments, investments may be delayed, along with the creation of jobs and the opening of new mines.
Another consequence is reflected in the supply of mining areas. Currently, approximately 88,000 areas are available for new investments, of which about 17,000 can be returned to the market through public tenders and auction processes. Delays in these initiatives often reduce Brazil's attractiveness to mining capital.
The National Mining Agency also warns that projects involving critical and strategic minerals, essential for supply chains related to the energy transition, electric mobility, and low-carbon technologies, are also affected. This situation occurs precisely at a time of growing international interest in such resources.
Reduced resources also jeopardize CFEM audit and regulatory actions, weakening control over mining royalties allocated to federal, state, and municipal governments. Projects for technological modernization, mineral traceability, and combating illegal mining may also face delays or stagnation.
The agency believes that maintaining the current situation will increase regulatory risks, reduce the country's regulatory capacity, and could endanger the operational safety, investment, and competitiveness of Brazil's mining sector in the coming years.
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