Brazil's mining regulator criticized as Vale fined for chemical discharge in Minas Gerais

A recent audit by the Federal Comptroller General's Office (CGU) found the National Mining Agency (ANM) severely limited in its ability to combat illegal mining and collect mineral royalties. Only 22% of illegal sites identified in 2024 received shutdown orders and just 1% resulted in equipment seizures. The report highlighted the agency's reliance on complaints, limited use of remote‑sensing technology, and gaps in internal record‑keeping. Former TCU findings warned that structural flaws have already cost the federal government and states billions of reais in lost compensation, with Minas Gerais alone losing an estimated R$2.7 billion.

In a separate municipal decision, the Itabira City Environmental Council (Codema) upheld a R$445,000 fine against miner Vale after residents reported smoke and a chemical odor emanating from the public drainage system. The penalty, originally imposed in December 2025, was maintained despite Vale's appeal, underscoring ongoing enforcement challenges in Brazil's mining sector.

Both incidents illustrate persistent weaknesses in mining oversight and the financial and environmental stakes for the country’s most important mineral‑producing region.