Skip to main content
Customs & International Trade Law
Mining Law · Commodities · Mineral Export

In the mineral trade, the margin lives in the clauses.

Iron ore deals are settled in the contract, not on the price screen. Base price, reference index, grade and moisture tolerances, penalties, sampling rules and payment terms determine how much each side actually receives or pays. Whether you are the Brazilian exporter or the buyer abroad, the margin lives in the clauses — and that is where it is quietly won or lost.

Our role is to structure and negotiate that contract from your specific position: on the seller's side, protecting the receivable and containing deductions; on the buyer's side, securing the contracted quality and keeping penalties balanced. In either case the aim is the same — clear measurement criteria, predictable settlement, and dispute mechanisms that work before a disagreement turns into a loss.

See practice areas
Corporate clients
Export contracts
Advisory and litigation practice
Corporate clients
Export contracts
Advisory and litigation practice
Corporate clients
Export contracts
Advisory and litigation practice
Corporate clients
Export contracts
Advisory and litigation practice
Corporate clients
Export contracts
Advisory and litigation practice
Corporate clients
Export contracts
Advisory and litigation practice
Preliminary review
Points in a mineral contract that deserve legal review
Iron ore / Commodities
Supply contract

The anatomy of a mineral contract

Before price comes structure: the type of contract, the committed volume, exclusivity and the way to resolve deadlock define the balance of the operation over years.

01
Offtake and long-term supply
Offtake and long-term supply contracts: volume, term, exclusivity, take-or-pay and renewal conditions.
02
Spot and shipment by shipment
Spot operations and per-shipment contracts, with attention to price formation and risk allocation in each cargo.
03
Governing law and forum
Choice of governing law and of forum or arbitration — defining where and how any dispute will be resolved.
04
Guarantees and default
Guarantee clauses, letters of credit, events of default and the corresponding contractual remedies.
Quality, analysis and rejection

Quality is proven twice

In ore transactions, price is a function of grade — and grade is a claim that must be proven, at loading and at discharge. A well-built contract protects both sides: the seller, against undue rejection or penalty; the buyer, against cargo that arrives off-specification.

Quality, analysis and rejection
Logistics and chartering
Logistics and chartering

The ship and the clock

In bulk, time is price. Coordinating the sale contract with the transport contract keeps a vessel's demurrage from consuming the operation's gain.

Regulation and taxation

The regulatory and tax layer of export

On top of the contract sits a layer specific to the mineral sector — royalty, mining title, export taxation — that must be reflected in the operation and in the price.

01
CFEM (mineral royalty)
The Financial Compensation for Mineral Exploration (Law 13,540/2017): tax base, rates per substance and the debates over its incidence.
02
ANM and the Mining Code
Mining titles, obligations before the National Mining Agency (ANM) and the regime of the Mining Code.
03
ICMS export immunity
Constitutional ICMS immunity on exports (Federal Constitution, art. 155), as regulated by the Kandir Law (LC 87/96), and non-incidence on sales to an export trading company (art. 3, sole paragraph, of the Kandir Law).
04
PIS/COFINS and the export chain
Non-incidence and credit of PIS/COFINS on exports, including indirect export through a trading company (Brazilian Supreme Court, Theme 674 — RE 759244).
05
DU-E and bulk logistics
The Single Export Declaration (DU-E), Siscomex and the particularities of bulk shipment through the port, including ICMS non-incidence on inland interstate freight to the port (STJ Precedent 649).
06
Supply-chain due diligence
Diligence on origin, title and compliance of the mineral chain, including requirements from buyers abroad.
Environmental and force majeure

Licensing, dams and what halts the operation

An environmental or regulatory event can stop the mine and, with it, the supply. The contract must anticipate who bears that risk.

01
Environmental licensing
Licenses, conditions and the impact of their suspension on supply commitments already undertaken.
02
Dam safety
The National Dam Safety Policy (Law 12,334/2010, amended by Law 14,066/2020) and its regulatory and contractual effects.
03
Force majeure and change in law
Force majeure, change-in-law and hardship clauses that suspend or reallocate obligations in the face of regulatory and environmental events.
Forum, law and arbitration

The right question: where are the assets?

In cross-border mineral trade, the clause that sets where and how a conflict is resolved is worth as much as the price. We act for either side — the Brazilian exporter or the foreign buyer — starting from the same question: where are the counterparty's assets? Enforceability is what turns a favourable ruling into actual recovery, the clause's validity always being assessed on the facts of each case.

Forum, law and arbitration
Who it is for

Sellers and buyers of ore, in Brazil and abroad

We act for either side of an ore deal — those who sell and those who buy, inside or outside Brazil — always from the standpoint of the party who retains us.

Brazilian mining companies and exporting trading houses negotiating volume with counterparties abroad
Foreign buyers and importers — steelmakers, traders and off-takers — sourcing ore of Brazilian origin
Sellers seeking to shield the receivable against grade, moisture and penalty deductions
Buyers wanting to secure the contracted quality and balance sampling and price-adjustment clauses
Parties on either side facing a measurement, assay or settlement dispute
Companies structuring long-term supply (off-take) agreements and their guarantees

There is no single formula or guaranteed result: each operation depends on the contract, the applicable regulation and the technical elements of the concrete case.

This is a specialization of our international trade practice. For the overview — clearance, import taxation, customs regimes and maritime transport — see the Customs & Trade Law page.

Back to Customs & International Trade Law
FAQ

Frequently asked questions on mining law and mineral export

Talk to the firm

Does your mineral contract reflect the real grade, index and logistics of the operation?

Early legal review of the contract makes it possible to align the quality specification, the pricing mechanism, the port logistics and the regulatory risk with what the operation actually supports.

Service by appointmentNationwide and international practiceContracts in Portuguese and English