Brazilian government to impose partnership at new mining ventures?

And the rumors go on: U.S. news agency Dow Jones Newswire brought on Monday the gossip that the Brazilian Mines and Energy Ministry would put in the country’s new mining frame that the state may require partnerships in mining projects, following the statutory participation model adopted in the country’s offshore pre-salt oil fields.

The report quoted Rinaldo Mancin, president of Brazilian Mining Institute (Ibram) saying, “today, mining risk is 100% assumed by the private sector. Now there's discussion that the state may get involved in new partnerships (…) whether the ownership of mineral concessions already granted will continue to be respected is a question that ‘worries’ the sector (…) we’ve participated very little in the discussions”.

On the flipside, Cláudio Scliar, Geology, Mining and Mineral Transformation Secretary at the Ministry, denied that the reform will contain any specific proposal on state participation in mine projects. Scliar called the rumor “unreal” but did not ruled out the possibility of the federal government bidding for areas. Also, Dow Jones Newswire said the proposed mining code revision will sent to Congress next month, in the 34785614st forecast we heard, but nothing was confirmed by the Brazilian authorities.