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Tailings dam safety in Brazil: upstream dam ban, decharacterization, safety plans, guarantees and fines

Last verified: 2026-10-27 · Status: Stable

Since the 2020 reform Brazil bans building or raising mining dams by the upstream method and required existing upstream dams to be decharacterized by 25 February 2022, subject to case by case extensions. Every dam owner must keep a safety plan with an emergency action plan and flood map until the structure is decharacterized, may be required to post financial guarantees, and faces strict liability for damage plus fines of R$2,000 to R$1 billion. Dam status is a core diligence item in any Brazilian mining deal.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026. Conversions are for orientation only.

Key facts

Statutory deadline to decharacterize upstream mining dams	2022-02-25 dateLei nº 12.334 art. 2-A § 2, as of 2026-10-27 · in force
Maximum dam safety fine	1000000000 BRLLei nº 12.334 art. 17-E, as of 2026-10-27 · in force
Days to file a defense against a dam safety infraction notice	20 daysLei nº 12.334 art. 17-B I, as of 2026-10-27 · in force

The rule

1. Building or raising a mining dam by the upstream method, where the containment dikes rest on previously deposited tailings or sediment, is prohibited.Lei nº 12.334 (National Dam Safety Policy), art. 2-A included by Lei nº 14.066 of 30 September 2020, Art. 2-A caput and § 1, 2020-09-30 official text · verified 2026-10-27 · changed: Lei nº 14.066 of 30 September 2020 banned upstream mining dams after the tailings dam disasters.

2. Owners had to complete decharacterization of dams built or raised by the upstream method by 25 February 2022. The mining regulator may extend that deadline for each structure where it is technically unfeasible, if the environmental licensing authority endorses the decision.Lei nº 12.334, art. 2-A included by Lei nº 14.066, Art. 2-A §§ 2 and 3, 2020-09-30 official text · verified 2026-10-27

3. The Dam Safety Plan must include at least the owner's identification, technical and as built data, the safety team's structure and qualifications, inspection and monitoring manuals, the Emergency Action Plan, inspection reports, periodic safety reviews, risk scenarios, a flood map for the worst scenario and monitoring equipment data. It must be kept updated and operational until decharacterization and be available on site before operation starts.Lei nº 12.334, as worded by Lei nº 14.066, Art. 8 I to XII and §§ 3 and 4, 2010-09-20 official text · verified 2026-10-27

4. The inspecting body may require the owner to post a bond, insurance, surety or other financial or real guarantee to repair damage to human life, the environment and public property, without prejudice to the environmental licensing authority's powers.
Cost to do it: Amount set by regulation and the inspecting body for each structure.Lei nº 12.334, as worded by Lei nº 14.066, Art. 17 § 2, 2010-09-20 official text · verified 2026-10-27

5. Breach of the law, its regulation or instructions is an administrative infraction, in addition to criminal liability and the duty to repair damage regardless of fault. Penalties include warning, simple and daily fines, embargo, demolition, suspension of activities, seizure of ore and equipment, forfeiture of the mining title and restrictions such as loss of tax incentives and of access to official credit.Lei nº 12.334, arts. 17-A and 17-C included by Lei nº 14.066, Arts. 17-A and 17-C, 2020-09-30 official text · verified 2026-10-27

6. Fines are set by regulation and updated periodically, between R$2,000 and R$1,000,000,000. The infractor has 20 days to defend, the authority 30 days to decide, 20 days to appeal and 5 days to pay once notified.
Cost to do it: Fine R$2,000 to R$1,000,000,000 (about US$375 to US$187.46 million).Lei nº 12.334, arts. 17-B and 17-E included by Lei nº 14.066, Arts. 17-B and 17-E, 2020-09-30 official text · verified 2026-10-27

7. A dam that fails safety requirements must be recovered, deactivated or decharacterized by its owner, which must report the measures taken to the inspecting body.Lei nº 12.334, as worded by Lei nº 14.066, Art. 18 caput, 2010-09-20 official text · verified 2026-10-27

8. A mining dam may not be built where dam break studies show a community in the self rescue zone (ZAS). Where a community is found in the ZAS of a dam under construction or in operation, the authorities decide, after hearing the owner, between decharacterization, resettlement with rescue of cultural heritage, or reinforcement works, weighing which came first and technical and financial feasibility. Only workers strictly needed for the dam may stay in the ZAS.Lei nº 12.334, art. 18-A included by Lei nº 14.066, Art. 18-A caput and §§ 1 and 2, 2020-09-30 official text · verified 2026-10-27

Worked example

Diligence on a target with an upstream tailings dam: confirm decharacterization was completed by 25 February 2022 or that the ANM granted a structure specific extension endorsed by the environmental licensing authority (art. 2-A §§ 2 and 3); collect the Dam Safety Plan, Emergency Action Plan and flood map (art. 8); and price the exposure: fines up to R$1,000,000,000 (about US$187.46 million), daily fines and strict liability for damage.

Step by step

1. Map every dam and its construction method; upstream structures need a decharacterization plan or a valid extension.
2. Keep the Dam Safety Plan, Emergency Action Plan and flood map current and on site.
3. Register dams in the national dam safety system until decharacterized and run regular and special inspections.
4. Be ready to post guarantees if the inspecting body requires them.
5. Track infraction deadlines: 20 days to defend, 20 days to appeal, 5 days to pay.

Common traps

A deal that inherits an upstream dam inherits the decharacterization duty and strict liability for damage.
Daily fines run while the infraction lasts, on top of the simple fine.
Sanctions can include forfeiture of the mining title and loss of tax incentives and official credit, not only fines.
Duties continue after mine closure until the dam is fully decharacterized.

Sources

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