Mining myths and facts: what is exaggerated and what is real

Few subjects spark as many strong opinions as mining. For some, it is a synonym for destruction. For others, it is the foundation of everything we use. The truth is almost always in the details. In this guide, we pick out some of the most common claims and show, with data and sources, what is myth, what is fact and what depends.

In short

• Mining and garimpo (informal, often wildcat, mining) are not the same thing, and today garimpo covers more land than industrial mining in Brazil.
• The mined area in Brazil is small compared with the country’s territory, but the impacts can reach far beyond the mine site.
• Every mine must have a closure plan, approved and updated throughout operation.
• Dam rules changed after Mariana and Brumadinho, but the transition is not over yet.
• Mining companies pay a specific compensation for mineral extraction, the CFEM, on top of taxes.

“Mining and garimpo are the same thing”

Myth. Garimpo is a form of extraction, usually of gold, with simpler methods and on a smaller scale. It can be legal, through a specific permit from the ANM, Brazil’s National Mining Agency, but much of the garimpo in Brazil is illegal. Industrial mining, on the other hand, depends on studies, licenses and authorizations for each stage.

The difference shows up in the numbers. According to MapBiomas data reported by Agência Brasil, in 2022:

	Area occupied
Garimpo	263 thousand hectares
Industrial mining	about 180 thousand hectares
Total	443 thousand hectares

The survey also found that 92% of the garimpo area in Brazil was in the Amazon, and 85.4% of it was dedicated to gold extraction. In other words, when people talk about mining in the Amazon, it is important to separate licensed industrial activity from garimpo, especially the illegal kind.

“Mining takes up a huge part of Brazil”

Myth, with an important caveat. Adding industrial mining and garimpo together, the mined area in 2022 was 443 thousand hectares. Brazil’s territory covers about 851 million hectares, according to IBGE, the country’s national statistics institute. Doing the math, mining occupied about 0.05% of the territory.

The caveat: the impact is not limited to the mine site. Tailings, sediments and contaminants can reach rivers kilometers away, and the roads and villages opened up for mining also change the region. That is why the size of the pit alone does not measure the effect on the environment.

“Every mine ends up as an abandoned hole”

As a rule, a myth. In Brazil, every mining operation must have a Mine Closure Plan, under ANM Resolution No. 68/2021. The plan must be updated every five years (or whenever the mine’s development plan is revised), and the last update must be made at least two years before the planned closure.

Closure involves, among other things, ensuring the physical and chemical stability of the area and defining a future use for it: reforestation, a lake, a recreation area or another use.

But there is an uncomfortable truth: there are old mines that were abandoned before these rules, or without complying with them. Rehabilitating these areas is a liability that still has to be dealt with.

“After Mariana and Brumadinho, nothing changed for dams”

Myth. After the failures of the Fundão dam, in Mariana, in 2015, and the Córrego do Feijão Mine dam, in Brumadinho, in 2019, both in the state of Minas Gerais, in southeastern Brazil, the rules got tougher.

Law No. 14,066/2020 amended Brazil’s National Dam Safety Policy and banned dams built by the “upstream” method, the same method used in the structures that failed. The law also required these dams to be decharacterized, meaning they must stop functioning as tailings dams.

The part that is still true: the process is slow. The law called for decharacterization to be completed by February 2022, and the ANM set staggered deadlines, according to the size of the dam, running up to 2027. Several companies asked for more time and signed agreements with the Public Prosecution Service. According to an ANM report from October 2026, 38 upstream dams were still left, and in some cases works are scheduled to run until December 2035. We cover the topic in detail in Tailings dams: what they are and why some are dangerous.

“Mining companies pay nothing to the country”

Myth. On top of the taxes any company pays, mining pays the Financial Compensation for the Exploitation of Mineral Resources (CFEM), which works like a royalty. Since Law No. 13,540/2017, the rates vary by ore:

Substance	CFEM rate
Iron	3.5%
Bauxite, manganese, niobium and rock salt	3%
Diamond and other substances	2%
Gold	1.5%
Sand, crushed stone and other construction materials, ornamental stones and mineral waters	1%

The revenue is split among the federal government, the states and the municipalities, including the municipalities affected by the activity.

The legitimate debate is not whether mining pays, but whether it pays enough and whether the money reaches the people affected. These discussions remain open.

“We can live without mining”

Myth. Almost everything we use depends on some mineral: the cement and steel in houses, the fertilizer on crops, the battery and magnets in electric cars. The energy transition itself increases this dependence. According to the International Energy Agency (IEA), demand for the rare earths used in magnets has doubled since 2015 and is expected to grow by more than 30% by 2030.

The more useful question, then, is not “mining, yes or no,” but how, where and under what rules to mine. To understand why rare earths became a priority, read Rare earths: what they are, what they are used for and why Brazil matters.

So, is mining good or bad?

Neither, in and of itself. Mining is a necessary activity with real impacts. What determines the outcome is how it is done: planning, licensing, oversight, the safety of structures, dialogue with the people who live nearby and rehabilitation of the area at the end. To learn about each stage, read How a mine works: from discovery to closure.

Frequently asked questions

What is the difference between mining and garimpo?

Garimpo is smaller-scale extraction with simpler methods, usually of gold. It can be legal, with a permit from the ANM, but much of it is illegal. Industrial mining depends on studies, environmental licenses and authorization from the ANM.

How much of Brazil is taken up by mining?

According to MapBiomas, industrial mining and garimpo together covered 443 thousand hectares in 2022, about 0.05% of Brazil’s territory. The impacts, however, can extend beyond the mined area.

What happens to a mine when it closes?

It must follow a Mine Closure Plan, required by the ANM, which provides for stabilizing and rehabilitating the area and defines a future use for the land.

Do dams like the ones in Mariana and Brumadinho still exist?

Law 14,066/2020 banned this type of dam, built by the upstream method, and required it to be decharacterized. The process is still under way, with staggered deadlines and extension agreements.

Do mining companies pay royalties in Brazil?

Yes. They pay the CFEM, with rates from 1% to 3.5% depending on the ore, on top of the taxes any company pays.