The Brazilian Mining Agency, ANM, has opened a public consultation about the use of mining rights by companies as a guarantee to get financing. The public consultation is open for 30 days.
ANM said the goal of such a discussion is to expand alternatives for mining companies to fund projects, as well as to bring legal safety to incentivize credit in the sector.
ANM said it opened the topic for public discussion to bring certainty to investors and mitigate the impact of Covid-19 on the business. Tomás de Paula Pessoa, director at ANM, said the mining business is a risky one.
“Big mining countries have many instruments of project finance, such as credit lines, stock exchange, venture capital, streaming contracts, among other structured operations,” he said.
“Our mission is to regulate a decree that set the Mining Bill and make it possible for companies to have more (financial) sources to develop and finance projects,” he said.