Brazil Plans Mining Reform to Boost Production

The Brazilian Mining Industry is going to see legal changes to the old 1968 mining code. The changes would be along the lines of the oil legislation which was passed over the last 15 years taking Brazil from being an importer of oil to a net exporter of petroleum products. The plan is being named the National Mining Plan 2030.

An investment of about $350 billion by 2030 will allow Brazil to expand production of iron ore three times what it is today. The plan outlines that iron ore output will be 58% higher at 585 million mt in 2015 and will climb to 795 million mt in 2022 before finally reaching 1.1 billion mt by 2030. The other metals whose output is likely to increase after benefiting from the new mining plan are copper, nickel, and alumina.

The mining plan also wishes to reduce the country’s dependence on exports to China. The Minister for Mines and Energy Edison Lobao said that it was clear there was a need for change in the management of their mineral resources as he launched the plan in Brasilia.One major change proposed by the plan is to change an exploration concession system that allows companies to get rights to explore an area for 30 years without requiring the company to produce anything.