Equipment and services companies facing hard effects of Brazil's suspension of mining permits

The equipment and services supply chain for the mining sector is facing the effects of the suspension of new mining permits ruled by Brazil’s National Department of Mining Research (DNPM), newspaper Valor Econômico said on Monday. The paper said mining research companies with activities in Brazil are idle half of the time, and the lack of definitions on the new regulatory frame for the mining sector is making it worst.

Some 5,300 permits for research and 30 decrees authorizing production at mining sites were not published in the past 12 months, affecting demand for research, mapping and chemical analysis of samples, among other services related to mining business. Similarly, junior mining companies are struggling to deal with the government’s lack of decision, as no permits for new areas are being issued by DNPM.