CFEM: deadline for appeals in the first instance ends on Tuesday (3)

Municipalities directly or indirectly affected by mining infrastructure should be vigilant. The deadline to file an appeal in the first instance regarding the new list of municipalities recently released by the National Mining Agency (ANM) ends on Tuesday (3). After identifying inconsistencies in the database extracted from the Annual Mining Reports (RALs) – an instrument for preparing the list of municipalities benefiting from the Financial Compensation for Mineral Exploration (CFEM) – the ANM released a new list of beneficiary entities.

According to the agency, several piles were not calculated. Mining specialist lawyer Alexandre Sion is the one who clarifies what happened.

“In several cases, when declaring waste piles, miners reported the substance contained in these structures instead of the mineral substance extracted. As a result, several piles had not been counted. When reassessing the lists, the ANM identified the need to rectify the provisional list of affected municipalities,” he explains.

In light of the episode, ANM reports that it did not consider the substances initially indicated in the database taking into account the elements associated with mining processes in 2023.

“The CFEM amounts due to the federated entities affected by mining activities will only be distributed after the publication of the final annual list, which occurs after the procedure provided for in ANM Resolution 143 has been completed. The annual list of municipalities that are entitled to the compensatory benefit for having been affected by mining activities will be published by May 10 of each year,” says lawyer Alexandre Sion, who also adds:

“Municipalities can file an appeal to request a change in the list of federative entities benefiting from the compensation, or correction of the information used for the calculation,” he points out.

Data review

With the new publication of the beneficiaries, the percentages of those that were on the previously published list have been changed. Municipalities in states such as Minas Gerais, for example, have undergone changes. In the first version of the list for the 2024/25 cycle, state entities concentrated almost 90% of the resources, now they correspond to 70% of those contemplated. In the new list, municipalities in Minas Gerais such as Pará de Minas, Monte Carmelo and Ouro Preto, for example, can be found.

Another state that stands out is Pará, which also has municipalities on the list. Among them are Itaituba, Parauapebas and Capanema. Municipalities in São Paulo, for example, are also mentioned, such as Guarulhos, Ribeirão Preto and Viradouro.

Check if your municipality is on the list:

Check it out here the complete list.

CFEM

The ANM’s Superintendent of Revenue Collection and Inspection, Daniel Pollack, recalls that one of the objectives of the CFEM is to remunerate mineral producing entities for the exploitation that mining companies make of natural resources.

“The fact that there is a transportation structure of a railway, a port or a pipeline and the fact that there are mining structures that make it possible to use the deposit are the conditions that make the city impacted by mining activity, so at least in this part of highways, ports, the legislation does foresee the possibility of a municipality being affected by mining activity”, he explains.

According to specialist Alexandre Sion, the legislation establishes that 15% of the amounts collected under CFEM must be distributed to the Federal District and municipalities affected by mining.

“Municipalities are considered affected when production does not occur in their territories, but are used for rail or pipeline transport of mineral substances, are affected by port operations for loading and unloading mineral substances, if they have waste piles, tailings dams, facilities provided for in the economic use plan in their territories”, he highlights.

Municipalities with active mines share 60% of the CFEM revenue. The states that produce receive 15%, while the Union receives 10%.

Deadline

The National Confederation of Municipalities reminds that the notes must be registered in the Electronic Information System (SEI). Municipal managers must be aware of the new deadline, as there is no room for questioning after the publication of the final list. For more information, the CNM has made the Confederation’s Finance department available by email at [email protected]

Responses to appeals received by August 12, 2024 are available on the ANM website.

By Brasil 61

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