COSRO Advogados

Mining

We offer comprehensive legal solutions for the mining sector, covering all operational phases of projects in this industry. Our consolidated network of contacts in both traditional and emerging mining hubs enables us to support our clients' business needs, providing them with tailored services

Mining
Mining

Our team provides practical and relevant advice grounded in the commercial reality of the mining industry. From the early stages of projects through to divestment or mine closure, we deliver comprehensive legal solutions, addressing matters ranging from day-to-day issues to complex transactions and international litigation. Our experience includes support in feasibility studies, financial structuring and tax optimization, project construction, supply chain management, obtaining environmental licenses and advising on matters relating to indigenous rights. We also act in obtaining regulatory approvals, concessions, risk allocation and contractual documentation

Our view on the industry

The mineral sector has historically been important to Brazil's development and remains highly significant in the Brazilian and global economy: mining contributes approximately 4% of Brazil's GDP, and the country is a major exporter of iron, manganese, tantalum, niobium and bauxite.

More recently, efforts to decarbonize the global economy, a hallmark of the current global energy transition process, entail greater adoption of energy technologies that are more mineral-intensive in their production, such as solar and wind power, as well as batteries, for example. In this context, the projected future demand for these minerals to support this process indicates investment opportunities that are being encouraged by various countries, so that the future supply of these minerals does not become a bottleneck for the energy transition.

There is considerable overlap, across different jurisdictions, among the minerals deemed critical or strategic for the energy transition. As provided for in the National Mining Plan 2030, Brazil adopts the term “strategic minerals” to identify the set of minerals defined under the Pro-Strategic Minerals Policy by MME Resolution No. 2 of July 18, 2021. This set is segmented, on a non-exclusive basis, into: mineral goods for which the country relies heavily on imports to supply vital sectors of the economy; minerals that are important due to their application in high-technology products and processes (which includes the minerals critical to the energy transition); and mineral goods that hold comparative advantages and are essential to the economy through the generation of a trade balance surplus for the country. The United States of America and the European Union have similar classifications, updated periodically.

Regardless of the classification adopted, there is no doubt as to the projected significant increase in demand for a set of minerals on a scale that could more than triple by 2050. In this context, the size of Brazil's territory and its geological diversity are coupled with the prospect of enormous potential for new mineral discoveries. According to the International Energy Agency, Latin America stands out as the region with the greatest potential to attract foreign investment and expand production (both due to the quantity of existing reserves and the potential for new discoveries), and Brazil, within Latin America, is the country with the greatest prospects for attracting investment, becoming a

  • High potential and quality of reserves
  • Significant growth in mineral demand associated with the energy transition
  • Friendshoring and nearshoring strategies of countries and companies
  • Initiatives to encourage the expansion of mineral processing in Brazil
  • Increasingly stringent environmental and sustainability requirements
  • A regulatory framework in constant transformation
  • Investment financing
  • Complex tax regime
  • Legal restrictions applicable to access to rural areas
  • Powershoring and friendshoring
  • Acceleration of investments in the energy transition
  • Green mining and pressure for more sustainable and socially responsible practices
  • Technological advancement, including digitalization, automation and the use of artificial intelligence
  • Public policies to accelerate investments in mining
Work Highlights

Leading the acquisition of mining companies listed on the TSX Venture Exchange

We advised on the full acquisition of the issued and outstanding common shares of companies listed on the TSX Venture Exchange, and all of their mining assets in Brazil

Prominent administrative practice and regulatory advisory before the regulator

We advised clients in successful discussions with the ANM in proceedings for the transfer of mining rights and in administrative sanctioning proceedings, as well as in developing positions and reviewing rules and regulations

Unique knowledge of seabed mining and prospects for deep sea mining

We act in the analysis of pioneering mineral exploration projects in international waters, advising clients on strategic matters, from obtaining licenses and authorizations to analyzing environmental impacts and economic feasibility. We have a deep understanding of the challenges and opportunities of this innovative sector, which has the potential to transform the supply of essential mineral resources, such as rare metals and critical elements, for the global energy transition

Assessment of the environmental feasibility of mining in the Amazon

We advised a client on the legal-environmental assessment of the feasibility and risks associated with underground mining in a Conservation Unit in the Amazon

Ongoing advisory to major mining companies

We advise our client on various fronts related to its activities, including consultancy on strategic processes and negotiation with stakeholders, preparation of legal opinions and consultations, analysis of matters relating to NORM storage, defense in administrative and judicial proceedings, and crisis management related to various environmental occurrences (solid waste, particulate emissions, etc.)

Areas of Practice

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