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The Mining Code provides for different mineral exploitation systems, namely: (i) Concession System,applicable in the cases where a concession issued by the Ministry of Mines and Energy is required; (ii)Authorization System, applicable in the cases where an authorization issued by the General Directorof the DNPM is required; (iii) Licensing System, applicable in the cases where a license issued by alocal administrative office and registered with the DNPM is required; (iv) Small-Scale MiningPermission System, applicable in the cases where a permit issued by the DNPM is required; and (v)Monopolization Regime, applicable in the cases where federal government intervention is required byvirtue of a special law.23. 5. Exploration PermitExploration activities (including but not limited to geological surveys, sample collection, physical andchemical analyses, etc.) can be carried out by Brazilian individuals or companies with head office andmanagement in Brazil upon the authorization of DNPM's General Director.The application for an exploration permit must be accompanied by, among other documents, adescription of the relevant area, a designation of the mineral substance intended to be explored and awork plan.If the DNPM verifies that the area is free – according to the priority system stated above – it will issuean Exploration Permit for a maximum period of 3 years, with the possibility of extension for the sameperiod.The mining company must pay DNPM a fee for each requested permit, in addition to the so-calledAnnual Fee per Hectare (Taxa Anual por Hectare - TAH), calculated according to the size of theexplored area.During the period of validity of Exploration Permit, the mining company must submit to the DNPM adetailed research report containing all studies, quantities and quality of the explored minerals andevidence of the technical and economic feasibility of mining the deposit ("Final Exploration Report").23. 6. Mining ConcessionAfter obtaining DNPM's approval of the Final Exploration Report, the mining company must submit theapplication for a Mining Concession to the MME along with the Economic Development Plan, within 1year after approval of the Final Exploration Report.Mining Concessions can be rejected if the federal government finds that it is contrary to public interest.In this case, the mining company is entitled to compensation for the costs incurred during theexploration stage.If a Mining Concession is granted, it will be valid until the mineral deposit is exhausted. The miningcompany will have the ownership of the extracted minerals, as long as it fulfills the duties and118