Mining Companies Articulate their own proposal for the new Mining Code

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The founder partner of Sion Advogados, Alexandre Sion, has given na interview on last Tuesday to the journalist Bruno Porto, from the newspaper Hoje em Dia, in which he spoke about the unconstitutionality of the retroactivity of the Legislative Bill 5.807/13 as regards the assignment of mining rights acquired under the validity of the current legislation:

“The mining sector has started to draw a whole Clean Bill to the Legislative Bill that creates the new regulatory framework for the mining sector, which will radically change the functioning of the sector. The miners want guarantees of maintenance of the vested rights and atack the model of concession proposed, which predicts bidding of mines.

By the new model, 27 thousand requests of mining permits  that now lay on the government’s table should be submitted to bidding. There should be necessary 73 years to complete the process, in case there was one bid per day, and no other request was presented. Tem delay may the prejudice the competitiveness and push away investments.

The term for presentation of amendments in the Parliament has expired, and the Clean Bill can still be presented by the rapporteur of the Special Comission or any senator after the text is submitted for appraisal in the Senate. Tem Clean Bill is a new text that, if approved, shall replace the Legislative Bill.

The use of this legal tool strenghtens in case the president does not remove the urgency regime of the bill, that already locks the issues in the Parliament since the last 4th. Kept the urgency, the term for discussion should be shorten. (…)

The lawyer specialist in Mining Law, Alexandre Sion, has rated the text of the Legislative Bill as unconstitutional for predicting subordination to the new rules in case of assignment of previously acquired Explotation Permits.”

 

Source: Hoje em Dia

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