SUSPENSION OF DEADLINES BY THE ANM – WHAT REMAINS SUSPENDED?

The National Mining Agency – ANM was one of the first entities to respond to the pandemic that had established itself in Brazil in the middle of March 2020, when it published Resolution 28 on the 24^th day of that month, determining the suspension of various deadlines.

At the time, the suspension was determined to extend up to April 30, 2020, respecting the presentation of defenses, proofs, objections and appeals relative to CFEM (Financial Compensation for Mineral Resources Exploration) and TAH (Annual Charge Per Hectare) collection proceedings and mining administrative proceedings as well as compliance with requirements and all deadlines established in the Mining Code and its Regulation.

An ANM Collegiate Board explicative note informed that the same also applied to the validity of time periods relative to prospecting permit mineral title. In all cases the dam safety time periods were exempt.

Irrespective of the agility of the ANM in responding to the events, there was such a large outcry against the suspension that in the same week the Ministry of Mines and Energy published Decree 135/GM, on March 28, 2020, recognizing mining activities to be essential, i.e., that should continue even during the pandemic. It questioned the real necessity of extending deadlines relative to a section that, as was recognized by the Ministry to which the Agency is linked, would remain active.

In any case, ANM Resolution 29 of April 17, 2020 extended the suspension until May 4, 2020, expressly stating that the suspension would also apply to “the presentation of partial and final research reports, the requirement for Prospecting Permit granting, mineral exploration granting, licensing registration, Independent Mining Permission (PLG) and extraction registration, communication of the onset and recommencement of prospecting and application for mine possession vesting.”

ANM Resolution 36 of June 1, 2020 extended the suspension until June 30, 2020 and included the item referring to “compliance with the requirements established in Article 27 of the Mineral Water Code (Decree-Law n. 7.841 of August 8, 1945), with respect to partial or complete periodic chemical analysis and, at least, a complete analysis every three years, to verify its composition and classification.”

New extensions of time were applied by Resolutions 39 of June 30, 2020 and 41 of July 31, 2020, without altering the material the object of the suspension.

This was until September 8, 2020, when the ANM published Resolution 46, which brought about various changes that not only impacted the deadlines relative to procedural acts within the ambit of the agency but also relative to material deadlines, including the term of mining title. Further, the monthly extensions regime was substituted for a more extensive extension, until December 31, 2020. This resolution brought about important change relative to the prior scenario:

• The resuming of the time period in which to  present CFEM and TAH defense: In light of the necessity of the resuming TAH and CFEM collection,  the deadlines for the “presentation of defenses, proofs, objections and appeals in assessment, constitution and recovery proceedings relative to Financial Compensation for Mineral Resources Exploration – CFEM  and Annual Charge Per Hectare – TAH income, survey charge and fine” was taken off the suspended deadline list;

• Automatic extension of title terms: Mineral title correspondent to Prospecting Permit granting, Mineral Exploration Grants, Licensing Registration and Mining Permission Decrees with term expiration between March 16, 2020 and December 31, 2020 was extended for nine months counting from the end of the term of the title, independent of titleholder request, the titleholders being assured the right to petition in proceedings disregarding the extension;

• Kimberley Process Certification and availability maintained: The time periods referring to Kimberley Process Certification and availability procedures remain unaltered, without extension or suspension. 

Almeida Advogados has a team specialized and with ample experience in the mining sector available to assist its clients with respect to any clarification.

Written by:
Guilherme de Carvalho Doval