The transfer of mining rights occurs when the holder of a mining right or title negotiates and transfers that right to another person. 

What are the mining rights/titles that can be transferred? 

There are different regimes under which mining rights can be transferred: 

1. Authorization and Concession Regime:
   • Areas/processes with research permit granted.
   • Areas/processes in the Right to Request Mining phase and in the Mining Request phase.
   • Areas/processes with Mining Concession granted and in force. 
2. Licensing Regime
   • When the title License Registration is granted.
3. Garimpeira Mining Regime:
   • When the Garimpeira Mining Permit title is granted. 

What are the most common ways to transfer a mining right? 

The most common forms are: 

• Partial Assignment 

• Total Assignment 

• Partial Lease 

• Full Lease 

What is Partial Assignment? 

The Partial Assignment of Mining Rights is the negotiation transfer of part of the area of a title. The acquirer (assignee) assumes a legal position identical to that of the predecessor (assignor), assuming all rights and duties relating to the negotiated part. For the assignment to be valid against third parties, it must be celebrated through a public or private instrument. 

What is Total Assignment? 

The Total Assignment of Mining Rights is the commercial transfer of a complete title. The acquirer (transferee) assumes all the rights and duties of the predecessor (transferor). 

What is Partial Lease? 

The mining rights lease agreement allows the holder to transfer, in whole or in part, the exploration of the deposit without transferring ownership of the mining concession or mine manifest. The holder (lessor) assigns to the lessee the rights and obligations inherent to the mining title. The form of payment may include the total or partial transfer of the mining product, with or without preference for purchasing the mineral by the holder. The lessee becomes jointly and severally liable to the holder of the mining concession or mine manifest. 

What is Total Lease? 

Similar to the partial lease, the full lease allows the holder to transfer the entire exploitation of the deposit, maintaining ownership of the mining concession or mine manifest. Payment conditions and obligations are the same as those described in the partial lease. 

Are there other situations in which the Transfer of Mining Rights applies? 

Yes, there are other situations such as incorporation, merger, spin-off, bankruptcy and succession causa mortis. DNPM Ordinance No. 155/2016 (articles 242 and 243) establishes the form and documents necessary to transfer mining rights in these situations. 

This article covered the main aspects of transferring mining rights in Brazil. If you are interested in more details, please contact the team of experts at Mining Market Brazil.