en.Wedoany.com Reported - The government of Mato Grosso, Brazil, is advancing a legislative proposal to allocate 90% of the Financial Compensation for the Exploitation of Mineral Resources (CFEM) received by the state to mineral exploration, innovation and technology development, and geological mapping over a 15-year period. If approved, the proposal will significantly increase the state's investment in mining exploration and technological innovation.

The Financial Compensation for the Exploitation of Mineral Resources (CFEM) is a statutory royalty levied on the extraction of mineral resources in Brazil, paid by mining companies to the federal government at a rate of 1% to 3.5% of monthly net sales. Under current law, CFEM revenues must be used for infrastructure, environmental protection, and community development projects affected by mining, and cannot be used to repay debt or cover recurring personnel expenses. In 2025, the National Mining Agency (ANM) collected approximately BRL 7.91 billion in CFEM, the second-highest amount on record, representing a 6.3% increase from 2024. Of the total collected, approximately BRL 7.09 billion was transferred to beneficiary entities, with states receiving BRL 1.17 billion and municipalities receiving BRL 5.92 billion, covering 5,234 municipalities nationwide, or about 94% of Brazil's cities.

In the CFEM collection ranking, Mato Grosso ranks fifth nationally. As of November 2025, the state's CFEM collection amounted to approximately BRL 141.2 million, accounting for 1.97% of the national total. As an important mineral resource-producing region in central-western Brazil, the state primarily extracts gold, limestone, manganese, tin, diamonds, and zinc. Of Mato Grosso's total area, 23.8% is of interest to the mining industry, equivalent to twice the area of Portugal. Investments in zinc and diamonds account for 37.0% and 31.3% of the state's total mining investments, respectively.

Mato Grosso has significant mineral resource potential, but its CFEM collection as a share of the national total still lags far behind major mining states such as Minas Gerais (44.71%) and Pará (39.25%). This proposal, which dedicates 90% of CFEM to mineral exploration and technological innovation, aims to enhance the state's autonomy in the upstream segment of the mining industry chain and promote the transformation of resource advantages into economic advantages. The proposal is currently under legislative review.