SPECIAL RULES OUTSIDE MINING LAW: BRAZILIAN FOREIGN INVESTMENT RESTRICTIONS

• Jurisdiction: Derecho Internacional

International Mining and Oil & Gas Law, Development, and Investment
(Apr 2011)
CHAPTER 8C
SPECIAL RULES OUTSIDE MINING LAW: BRAZILIAN FOREIGN INVESTMENT RESTRICTIONS
Daniella Raigorodsky Monteiro
Campos Mello Advogados
São Paulo, Brazil

DANIELLA RAIGORODSKY MONTEIRO is with the firm of Campos Mello Advogados in Sao Paulo, Brazil. She obtained her law degree from Universidade Mackenzie in Sao Paulo, her M.A. in Civil Law from PUC-RJ - Pontifícia Universidade Católica do Rio de Janeiro and on Debt Restructuring and Project Finance from Cambridge University. She has worked with Clifford Chance LLP in New York. She is a member of the Brazilian Bar Association, Sao Paulo Chapter (OAB/SP).

Daniella Raigorodsky Monteiro

draigorodsky@dlapiper.com

GAMPOS MELLO ADVOGADOS

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www.camposmellosdv.com.br

General aspects concerning foreign investments in Brazil

• Legal Provisions:

• Law 4,131 of September 3, 1962;

• Law 4,390 of August 29, 1964;

• Brazilian Central Bank's directives and resolutions;

• Resolution 3,844 of March 24, 2010 - Brazilian Central Bank (BACEN) - Registration Module RDE-IED.

• General Restrictions on Foreign Investments:

• Governmental control over the purchase and sale of foreign currency - transaction is carried out solely on the Exchange Market;

• Foreign investors will also need to be enrolled with the Federal Tax Revenue - control purposes only (not entail any type of taxable presence in Brazil).

Foreign investments in the Brazilian mining sector

• Legal Provisions:

Brazilian Federal Constitution - 1988

• The general framework for the use of mineral resources in Brazil is laid out by section 176, and its paragraphs, of the Brazilian Federal Constitution of 1988.

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