Brazil Government Freezing New Mine Prospecting Licenses in Brazil -Ibram
06/18/2012| 06:19pm US/Eastern
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RIO DE JANEIRO--The Brazilian government has frozen the granting of new mine prospecting licenses in Brazil, a director of the country's Brazilian Mining Institute, or Ibram, said Monday.
New licenses haven't been issued since November 2011, but Ibram, which groups together the country's main miners, hasn't received any formal notification of the clamp-down, said Ibram environmental affairs director Rinaldo Mancin on the sidelines of a sustainable development event in Rio de Janeiro.
"It may be because of the uncertainties over the new mining legislation that will be sent to congress," Mr. Mancin said.
A new mining code which would help stamp out speculation in the sale of undeveloped mineral deposits and would raise royalties on ore sales, has been under discussion in Brazil for several years but President Dilma Rousseff still hasn't approved the final text to be sent to congress for approval. Rousseff was a former mines and energy minister.
Brazil's National Mining Department, or DNPM, which is responsible for issuing licenses for prospection and mine development, had no immediate comment on the matter Monday.
-Write to Diana Kinchat diana.kinch@dowjones.com
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