Notes on the English version

This section provides definitions for terms used throughout the report. It notes that ‘garimpo’, which historically referred to small-scale mining, has evolved into a professional and aggressive industrial activity in the Amazon. Consequently, the report often translates the term as ‘illegal mining’. It also defines ‘quilombos’ as settlements founded by formerly enslaved Afro-Brazilians and identifies various political parties and federative units within Brazil to assist the reader in navigating the country’s complex political landscape.

Introduction

The report highlights that current mining conditions in Brazil, whether for illegal ‘garimpo’ or large transnational projects, were structured incrementally through ‘infralegal changes’ and ‘legislative bills’. The Jair Bolsonaro administration continued a policy initiated by its predecessor, Michel Temer, to increase the mining sector’s contribution to Brazil’s GDP from 3% to 6%. The Ministry of Mines and Energy (MME) and the National Mining Agency (ANM) are described as partners to large companies, facilitating investment by changing rules and providing financial incentives. This shift led to an explosion of mining activity inside indigenous lands and conservation units, with an increase of more than 600% over a decade.

Brazilian mineral sector: governance and figures

The ANM is a federal autonomous body linked to the MME that regulates, grants, and supervises the mineral sector. In 2021, metallic substances accounted for approximately 89% of the total value of Brazilian mineral production. Eleven substances accounted for 99.7% of this metal production, totaling R$ 312.9 billion. Iron ore alone accounted for about R$ 250 billion, with production concentrated in the states of Pará and Minas Gerais. Gold accounted for 8.5% of the traded value, representing the second-highest share. The report outlines the ‘path of gold’, describing how raw gold is sold at Gold Buying Posts near illegal sites and laundered through Distributors of Securities (DTVM) into the financial market.

Timeline

The timeline details critical events from 2019 to 2022. In January 2019, the Vale mining dam in Brumadinho burst, killing 270 people. Despite this disaster, the administration prioritised participation in the PDAC mining convention in Canada to attract international investors. In April 2019, the government announced goals to expand uranium mining, despite constitutional prohibitions on private entity exploitation of nuclear minerals. In 2020, Bill 191/2020 was introduced to allow mining on indigenous lands, removing the veto power of original peoples. During the COVID-19 pandemic, mining was defined as an ‘essential activity’, allowing companies to keep thousands of workers in close proximity. A partnership with the OECD led to the ‘regulatory guillotine’ project, aimed at reducing the regulatory burden through the simplification of licensing.

By 2021, the strategic minerals policy was launched, and pressure on indigenous groups intensified. A study showed that more than 20,000 miners had illegally occupied Yanomami territory. In 2022, the government approved billions in subsidies for coal power plants and opened the Brazilian lithium market by decree, a move that favoured multinational companies like Sigma Lithium. An audit by the Comptroller General found a lack of control over ‘garimpo’ permits, with systemic errors in ANM regional offices. By late 2022, dam inspections in Brazil had dropped by more than 90% since the Brumadinho collapse, and illegal mining on indigenous lands was found to have grown 632% in a decade.

Conclusion and suggestions

The transition working group formed after the election of Luiz Inácio Lula da Silva confirmed that the Bolsonaro government deliberately dismantled public policies and regulatory frameworks. The report presents 20 suggestions for rebuilding public governance. Key recommendations include strengthening control agencies by carrying out new public tenders to increase staff at ANM and IBAMA, and establishing a permanent inspection system in illegal mining hotspots. The report suggests deactivating landing strips used by illegal miners and increasing control over the gold chain through digitisation. Suggested legislative actions include repealing Bill 191/2020, suspending Bill 3729 on environmental licensing, and reviewing the draft bill for the New Mining Code. It also advocates for increasing the rates of Financial Compensation for Mineral Exploration (CFEM) and adoption of transparency practices to restrain lobbying that represents conflicts of interest.