This paper presents an overview of the Brazilian Constitutional provisions related to mining.
REGULATORY OVERVIEW
Mining is firstly regulated in the Brazilian Federal Constitution:[1]
- Mineral resources, whether being currently mined or not, belong to the Union.
- Mineral resources, for the purposes of exploration and exploitation, constitute property separated from the land. The ownership of the land does not encompass the mineral resources contained therein.
- Mining activity must be conducted in the national interest.
- The mining title holder is guaranteed the proceeds from mining.
- Only companies organized under Brazilian laws, with headquarters and administration in Brazil can mine in the country.
- Mining depends upon prior consent from the Federal Government.
- Exploration permits must be granted for a limited period.
- Mining depends upon previous environmental license.
- Law will establish specific conditions for mining taking place in the border strip.
- Mining in indigenous lands depends on prior consent from Congress.
- The landowner is guaranteed a share in the proceeds of mining, in the manner and amount prescribed by law.
- Mining titles may not be assigned or transferred, in whole or in part, without prior consent from the granting authority.
EXCLUSIVE LEGISLATIVE POWERS
The Union has exclusive power to legislate on mineral deposits, mines, other mineral resources and metallurgy (Federal Constitution, article 22, item XII).
CONCURRENT LEGISLATIVE POWERS
The Union, the States and the Federal District have concurrent power to legislate on forests, hunting, fishing, wildlife, nature conservation, defense of soil and natural resources protection, environmental protection and pollution control.[2]
COMMON ADMINISTRATIVE POWERS
The Union, the States, the Federal District and the Municipalities have shared responsibility to protect the environment and combat pollution in all its forms (Federal Constitution, article 23, item VI).
MUNICIPALITY LEGISLATIVE POWERS
It is the responsibility of the municipalities to legislate on matters of local interest.[3]
ENVIRONMENT PROTECTION
Everyone has the right to an ecologically balanced environment, which is a common good and essential to a healthy quality of life. Both the government and the community have a duty to defend and preserve it for present and future generations.
Those who exploit mineral resources must restore the degraded environment in accordance with the technical solution required by the competent environmental authority, as provided by law.[4]
FINANCIAL COMPENSATION ON MINERAL EXPLOITATION
The Federal Constitution assures the Union, the States, the Federal District and the Municipalities the right to participate in the proceeds of the mineral resources exploitation within their respective territories, continental shelf, territorial sea, or exclusive economic zone, to receive financial compensation for such exploitation. (Federal Constitution, article 20, paragraph 1).
OF THE ECONOMIC AND FINANCIAL ORDER
The economic order, founded on the appreciation of the value of human work and on free enterprise, is intended to ensure everyone a dignified existence, in accordance with the dictates of social justice, with due regard for the following principles:
- National sovereignty.
- Private property.
- The social function of property.
- Free competition.
- Consumer protection.
- Protection of the environment, including through differentiated treatment according to the environmental impact of products and services end of the processes by which they are produced and rendered.
- Reduction of regional and social inequalities.
- Pursue of full employment.
- Favorable treatment for small business incorporated under Brazilian law and having their head office and administration in the country.
- Everyone is assured free exercise of any economic activity, regardless of authorization from the government agencies, except in the cases set forth by law.[5]
LEGAL PRINCIPLES EXTRACTED FROM THE FEDERAL CONSTITUTION
Legal principles are the foundational precepts of a legal system that provide the basis for the creation and interpretation of law.
The Brazilian Federal Constitution contains several Legal Principles which are applied to the mining activity:
EXPLICIT PRINCIPLES
The Federal Constitution provides that direct and indirect public administration of any powers of the Union, States, Federal District and Municipalities shall obey the Principles of legality, impersonality, morality, publicity and efficiency.[6]
IMPLICIT PRINCIPLES
By using the inductive method, it is possible to reveal the Overarching Principle of Legal Certainty, which is a corollary of the Democratic Rule of Law.
There are also the legal Principle of Sovereignty over Mineral Resources, Principle of Mining in the National Interest and the Principle of Environmentally Sustainable Mining.
All of these constitutional precepts — rules and principles — form a legal framework governing the mining sector, balancing national interest, economic development and environmental protection.
[1] Federal Constitution, article 176: Mineral deposits, whether currently being mined or not, and other mineral resources and hydroelectric potential, constitute property separated from the land, for the purposes of exploration and exploitation, and belong to the Union (Federal Government). The concession holder is guaranteed ownership of the proceeds from mining. § 1 The exploration and mining of mineral resources and the utilization of the potentials referred to in the caput of this article may only be carried out pursuant to a mining title granted by the federal government, in the national interest, by Brazilian citizens or a company incorporated under Brazilian law and having its headquarters and management in the country, as provided by law, which shall establish specific conditions when such activities take place in border areas or on indigenous lands (wording provided by Constitutional Amendment No. 6, of 1995).
- 1 The exploration and mining of mineral resources and the utilization of the potentials referred to in the “caput” of this article may only be carried out pursuant to authorization or a concession granted by the Federal Government, in the national interest, by Brazilian citizens or a company incorporated under Brazilian law and having its headquarters and management in the country, as provided by law, which shall establish specific conditions when such activities take place in border areas or on indigenous lands (Wording provided by Constitutional Amendment No. 6, of 1995).
- 2 The landowner is guaranteed a share in the proceeds from mining operations, in the manner and amount prescribed by law.
- 3 The exploration permit shall always be for a fixed term, and the permits and concessions provided for in this article may not be assigned or transferred, in whole or in part, without the prior consent of the granting authority.
Redação original, art. 176: As jazidas, em lavra ou não, e demais recursos minerais e os potenciais de energia hidráulica constituem propriedade distinta da do solo, para efeito de exploração ou aproveitamento, e pertencem à União, garantida ao concessionário a propriedade do produto da lavra.
- 1º A pesquisa e a lavra de recursos minerais e o aproveitamento dos potenciais a que se refere o “caput” deste artigo somente poderão ser efetuados mediante autorização ou concessão da União, no interesse nacional, por brasileiros ou empresa constituída sob as leis brasileiras e que tenha sua sede e administração no País, na forma da lei, que estabelecerá as condições específicas quando essas atividades se desenvolverem em faixa de fronteira ou terras indígenas (Redação dada pela Emenda Constitucional nº 6, de 1995).
- 2º É assegurada participação ao proprietário do solo nos resultados da lavra, na forma e no valor que dispuser a lei.
- 3º A autorização de pesquisa será sempre por prazo determinado, e as autorizações e concessões previstas neste artigo não poderão ser cedidas ou transferidas, total ou parcialmente, sem prévia anuência do poder concedente.
[2] Redação original. Constituição Federal, art. 24, inciso VI: florestas, caça, pesca, fauna, conservação da natureza, defesa do solo e dos recursos naturais, proteção do meio ambiente e controle da poluição;
[3] Redação original. Constituição Federal, art. 30:
Compete aos Municípios: I – legislar sobre assuntos de interesse local;
[4] Redação original. Constituição Federal, art. 225:
Todos têm direito ao meio ambiente ecologicamente equilibrado, bem de uso comum do povo e essencial à sadia qualidade de vida, impondo-se ao Poder Público e à coletividade o dever de defendê-lo e preservá-lo para as presentes e futuras gerações. (…)
- 2º Aquele que explorar recursos minerais fica obrigado a recuperar o meio ambiente degradado, de acordo com solução técnica exigida pelo órgão público competente, na forma da lei.
[5] Redação original. Constituição Federal, art. 170:
A ordem econômica, fundada na valorização do trabalho humano e na livre iniciativa, tem por fim assegurar a todos existência digna, conforme os ditames da justiça social, observados os seguintes princípios:
I – soberania nacional;
II – propriedade privada;
III – função social da propriedade;
IV – livre concorrência;
V – defesa do consumidor;
VI – defesa do meio ambiente, inclusive mediante tratamento diferenciado conforme o impacto ambiental dos produtos e serviços e de seus processos de elaboração e prestação.
VII – redução das desigualdades regionais e sociais;
VIII – busca do pleno emprego;
IX – tratamento favorecido para as empresas de pequeno porte constituídas sob as leis brasileiras e que tenham sua sede e administração no País.
Parágrafo único. É assegurado a todos o livre exercício de qualquer atividade econômica, independentemente de autorização de órgãos públicos, salvo nos casos previstos em lei.
[6] Constituição Federal, art. 37: A administração pública direta e indireta de qualquer dos Poderes da União, dos Estados, do Distrito Federal e dos Municípios obedecerá aos princípios de legalidade, impessoalidade, moralidade, publicidade e eficiência.