Brazil may limit companies to explore mines for just 35 years as it seeks to increase domestic output of minerals and fertilisers, according to a government official.
The new rules come as Brazilian President Luiz Inacio Lula da Silva aims to make the country self-sufficient in fertilisers within ten years while also boosting domestic output of metals products such as pig iron and steel rods.
Under current legislation, mining rights in Brazil never expire, allowing companies to hold deposits without exploring them, reports Bloomberg.
The new code, designed by the Energy Ministry, also includes the creation of a regulator to oversee mining rules, Bloomberg reports, citing an unnamed government official.
In some circumstances, the new rules will allow mining companies to renew their licenses for an additional 35 years.
The legislation now needs to be approved by the president before it is passed by Congress.