Mining: after data review, new list of municipalities benefiting from CFEM is released

The identification of 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) – led the National Mining Agency (ANM) to review the affected cities. According to the agency, several piles were no longer 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, the 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 processing of the procedure provided for in ANM Resolution 143. 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.

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.

Data review

After verifying the inconsistencies, the ANM included new municipalities in the list. As a result, the percentages of those that were on the previously published list were changed. The deadline for filing first instance appeals was reopened until September 3, 2024.

Check it out here the complete list.

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