By Brazil Stock Guide – The National Mining Agency (ANM) has issued an official warning to the Brazilian government about a critical budget shortfall that will impede its ability to perform essential activities from October 2025. In a letter addressed to the ministers of state, the agency revealed it lacks sufficient resources to continue vital operations such as mineral sector oversight, enforcement, and the collection of the Financial Compensation for the Exploitation of Mineral Resources (CFEM). The agency’s budget is frozen at R$5.9 million, with an additional R$3.2 million in unrecognized expenses.
This shortfall will halt several key activities, including inspections of mining dams, tailings piles, and ongoing projects. The agency also warned that it could stop actions against illegal mining operations and face a potential 18% decrease in CFEM revenue, equating to a loss of approximately R$900 million for federal, state, and municipal governments. The lack of funding threatens to undermine the agency’s institutional capacity, potentially halting the processing of new mining projects.