Mineral prospection in Brazil - Core Case

Mineral prospection in Brazil

In Brazil, the term “garimpo” (mineral prospection) or “garimpagem” (prospecting activities) is usually associated with the activity of extracting valuable mineral resources such as gold in a rustic and irregular way, with a dismissive meaning. Cases such as Serra Pelada, in Carajás, broaden this view.

But it is important to know that the activity of mining is only one form of exploitation of mineral resources, among many others. And, furthermore, it is a duly regulated and inspected practice that moves the Brazilian economy significantly every year.

To learn more about mineral prospection in Brazil, read our content to the end!

Definition of mineral prospection

We can define mineral prospection (garimpo), in general, as the practice of exploitation of mineral resources in nature that occurs with investments considered low scale and simple technology, which can be mechanized, but usually occurs manually.

These characteristics are justified by the geology of the mineral deposits targeted for mining, which are usually outcropping on the surface, facilitating open-pit mining, or in some cases, through galleries that expose the rock located at a shallow depth.

Mining prospection in Brazil

In Brazil, the practice of mining is historically known due to its contribution to the national development of our civilization, and the first records of the activity in the country date back to the 16th century.

The mineral reserve exploitation through mining activity is responsible for ensuring raw materials for various other industry segments, highlighting its importance.

According to recent data, mining is constantly growing in Brazil unlike large-scale industrial mining, concentrated mainly in Minas Gerais, and Brazilian states of Pará and Mato Grosso stand out due to a major presence of mining enterprises. 

Regularization of the activity

The regularization, as well as the inspection of mining undertakings in Brazil is carried out by the National Mining Agency (ANM), formerly the National Department of Mineral Production (DNPM).

The authorizing title for mining granted by the regulatory agency for these enterprises is called Mining Permit (PLG), and the exploration is subject to some specific rules, such as not using explosives, not performing underground mining and not exceeding the limit of the saprolite.

The list of minerals considered “mineable” by the regulatory agency is not short, including diamonds, minerals from the mica group, gold, quartz and its varieties, and so on.

The Mining Permit (PLG) can be applied for by any Brazilian individual or cooperative of miners, and is valid for 5 years, always renewable for an equal term at the discretion of the ANM. 

In addition, the size of the mining areas is established by the norms of the National Mining Agency, with a maximum of 50 hectares being allowed for individual applicants and 1,000 hectares when granted to a mining cooperative.

Positive impacts of mining activity

Mining, when done legally, has a number of positive aspects, since besides being a basic industry, mining is an important source of income for the country. Some benefits are:

    • Tax collection: The mining enterprises collect taxes for the federal government, states and municipalities, cooperating in a relevant way to the economy, mainly in the regions where they are located.
    • Job creation: The sector contributes by creating a number of direct and indirect jobs, ensuring income for many families.
    • Infrastructure: The installation of new infrastructure is a recurring need in mining projects, since they are usually located in remote areas. Therefore, they provide opportunities for beneficial works for the town and local community, such as new roads, energy services, commerce, and so on. 
    • Sustainable Exploration: In order to regularize a mining enterprise, it is necessary to prove through environmental licenses actions that minimize the environmental damage caused, ensuring that the mining activity will occur in accordance with sustainable development.

All this means that mining is transformed into wealth, acting as a major vector for regional and national development.

Core Case supports the legal and sustainable mining

Core Case is present wherever there is quality mining carried out responsibly!

Our values are based on developing intelligent, technological, and economically sustainable solutions so that mining enterprises can grow more and more and contribute to the national development, without giving up the environmental responsibility that is increasingly necessary!

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