Mineral Property Due Diligence in Brazil: a Decision Checklist

Define the object before discussing value

The land, a mining process, a mineral title, historical technical information and a future operating project are not the same asset. A first-stage review should list each component and identify its holder, current status and role in the proposed transaction.

This prevents a land purchase from being interpreted as an automatic acquisition of mineral rights, or an early-stage process from being presented as permission to mine.

Verify land and access

• Ownership chain and current registration of the property.
• Geographic consistency between deeds, maps, memorials and the area shown to the investor.
• Possession, third-party occupation, easements and access routes.
• Existing liens, litigation, contractual restrictions or overlapping claims.
• Whether the proposed transaction covers the whole property or a defined portion.

Review every relevant ANM process

The ANM’s public systems allow searches by process number and by known attributes such as state, municipality, substance and holder. The investor should review the polygon, area, holder, procedural stage, filings, deadlines and whether the process is active or inactive.

Where a transaction includes a mineral title, the transfer route must match the type and stage of that title. The ANM describes mechanisms such as total assignment, partial assignment and lease, each with its own eligibility and documentation requirements.

• Confirm the exact process number and title holder.
• Reconcile the ANM polygon with the land presented.
• Identify deadlines, requirements, fees and pending obligations.
• Determine whether transfer, assignment or lease is legally available at the current stage.

Separate technical evidence from marketing

Historical reports, photographs, samples and local mining history may support a decision to investigate, but they do not automatically establish a mineral resource or reserve. Investors should examine chain of custody, sampling method, laboratory, coordinates, dates and the professional responsible for each conclusion.

Any new field program should have a defined scope, technical responsibility and rules for ownership and use of the resulting data.

Allocate environmental and transaction risk

• Map protected areas, environmental restrictions and the competent licensing authorities.
• Define which approvals are conditions precedent and who bears the cost of obtaining them.
• Use staged access, confidentiality and a documented site-visit protocol.
• Make price, deposits and closing obligations consistent with the unresolved risks.
• State clearly which representations survive closing and which conclusions remain the buyer’s responsibility.

A practical decision sequence

A rational sequence is: initial screening, NDA, limited data-room review, red-flag assessment, site visit, expanded legal and technical diligence, commercial proposal and definitive documentation.

This sequence reduces premature cost while protecting both parties from relying on assumptions that should be tested before a binding transaction.