Brazil's mining regulator signs deal with environmental authorities to speed up permitting

Brazilian mining regulator ANM signed a cooperation agreement with the country's two major environmental agencies as part of efforts by regulators to speed up permitting processes in the sector.

The agreement was reached between ANM, environmental watchdog Ibama and the Chico Mendes Institute for Biodiversity Conservation (ICMBio), the administrative arm of the environment ministry.

The deal is aimed at promoting closer and more comprehensive links between ANM and environmental agencies in processes and actions that address issues related to mining and the environment, including strict compliance with current legislation and respect for the competencies of the participating institutions, the mining regulator said in a statement.

"This approach that comes into effect with the signing of this technical cooperation agreement represents a landmark, a very important step towards a form of joint action without interfering in the competencies of each of the agencies," said ANM director general Mauro Sousa.

The three agencies will exchange information on environmental permitting, development of projects, conduct inspections and monitoring, prepare joint technical reports and share information systems, among other initiatives.

The agreement is seen by the mining industry as key to reducing risks for investors in the sector.

"One of the main obstacles to the development of a robust financing mechanism for mining projects in Brazil, as exists in Canada or Australia for example, is the uncertainties regarding environmental permitting processes," Valdir Farias, CEO of mining consultancy Fioito, told BNamericas.

"It's very difficult to establish an exact deadline for a project in Brazil to obtain approval for all the environmental permits, especially for larger and more complex projects. Because of this, the capex calculations for projects have very large margins of error, as the economic factors used as the basis for the calculations are unlikely to remain the same when the permits are approved," he added. 

In addition to long delays in environmental permitting processes in Brazil, other hindrances have emerged recently.

Since mid-June, permitting procedures in Brazil have been delayed due to a strike by civil servants at Ibama and ICMBio over salary demands. 

However, the strike has just been ended, after the supreme court ruled that the action was illegal, stating that the activities of Ibama and ICMBio are essential and cannot be halted in this manner.