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T. L. Cruz
criticized because of the use of non-renewable resources, environmental impacts,
conflicts between companies and local inhabitants, and increasing social disparities
in towns affected by its activities (Cabral et al. 2011; BBC 2019).
La Rovere (2001) highlights that international pressures from global financial
institutions led Brazilian government to strengthen environmental legislation. Thus,
there are national laws that encourage and oblige companies to conduct several studies
and implement projects to identify and mitigate environmental impacts before, during
and after the implementation of their projects in Brazilian territories.
Some industries are subject to specific taxation. Based on their mineral production,
mining companies must pay the Financial Compensation for Exploration of Mineral
Resources (CFEM) to National, State and Municipal governments. The CFEM is very
important for Brazilian economy, as it collected over US$980,000,000 in 2019 (ANM
2020a). This taxation is collected by National, State and Municipal governments,
which should invest it to promote local wellbeing and economic diversification, to
compensate the temporary exploration of mineral resources in their territory (Brasil
2017a, b). After all, non-renewable resources such as minerals and ores shall be
depleted someday, and the local economies will need new sources of income.
IMF (2002) considers that governmental involvement with sustainability must
not rest solely in environmental issues. It should extend even to treasury, which
has finite economic resources that should be sustainably managed. Considering the
relevant sums of CFEM collection and its crucial long-term importance for local
economies and social wellbeing, its investments should be guided by sustainable
financial principles (Cruz et al. 2019).
The municipality of Canaã dos Carajás is located in the northern Brazilian state
of Pará. It is the second largest collector of CFEM and the largest recipient of investments in mining industry nationally. Considering the largest iron ore mine in the
world is located there and has just started operations, CFEM collection shall increase
rapidly (Duddu 2018; ANM 2019a).
Mining operations in Canaã dos Carajás (Pará, Brasil) started in 2002, when
copper, gold and iron ore deposits were found in the region. Previously, the municipality was a small farming settlement, whose economy was based mainly in livestock
and agriculture (52% share of the local GDP, whereas industry had a share of 9%). But
its social and economic dynamics changed very rapidly and intensely after mining
exploration initiated (Cabral et al. 2011). With a population growth rate of 9% yearly
between 2004 and 2015, its total population went from 11,139 to 33,632. In 2017,
Industry had a 73% share on the local GDP (IBGE).
Despite improvements in economic dynamics, jobs generation and progress in
national indexes of wealth, health and education such as the Firjan Municipal Development Index (IFDM) since 2004, local inhabitants are very dissatisfied with environmental impacts and poor standards of living in both rural and urban areas of
the municipality (Cabral et al. 2011; Silva et al. 2014). Cruz et al. (2020) noticed
that some residents are not satisfied with the current safety, social infrastructure and
quality of life in the municipality, thus they do not feel the local government properly
uses the large sums of taxes it collects.
T. L. Cruz
criticized because of the use of non-renewable resources, environmental impacts,
conflicts between companies and local inhabitants, and increasing social disparities
in towns affected by its activities (Cabral et al. 2011; BBC 2019).
La Rovere (2001) highlights that international pressures from global financial
institutions led Brazilian government to strengthen environmental legislation. Thus,
there are national laws that encourage and oblige companies to conduct several studies
and implement projects to identify and mitigate environmental impacts before, during
and after the implementation of their projects in Brazilian territories.
Some industries are subject to specific taxation. Based on their mineral production,
mining companies must pay the Financial Compensation for Exploration of Mineral
Resources (CFEM) to National, State and Municipal governments. The CFEM is very
important for Brazilian economy, as it collected over US$980,000,000 in 2019 (ANM
2020a). This taxation is collected by National, State and Municipal governments,
which should invest it to promote local wellbeing and economic diversification, to
compensate the temporary exploration of mineral resources in their territory (Brasil
2017a, b). After all, non-renewable resources such as minerals and ores shall be
depleted someday, and the local economies will need new sources of income.
IMF (2002) considers that governmental involvement with sustainability must
not rest solely in environmental issues. It should extend even to treasury, which
has finite economic resources that should be sustainably managed. Considering the
relevant sums of CFEM collection and its crucial long-term importance for local
economies and social wellbeing, its investments should be guided by sustainable
financial principles (Cruz et al. 2019).
The municipality of Canaã dos Carajás is located in the northern Brazilian state
of Pará. It is the second largest collector of CFEM and the largest recipient of investments in mining industry nationally. Considering the largest iron ore mine in the
world is located there and has just started operations, CFEM collection shall increase
rapidly (Duddu 2018; ANM 2019a).
Mining operations in Canaã dos Carajás (Pará, Brasil) started in 2002, when
copper, gold and iron ore deposits were found in the region. Previously, the municipality was a small farming settlement, whose economy was based mainly in livestock
and agriculture (52% share of the local GDP, whereas industry had a share of 9%). But
its social and economic dynamics changed very rapidly and intensely after mining
exploration initiated (Cabral et al. 2011). With a population growth rate of 9% yearly
between 2004 and 2015, its total population went from 11,139 to 33,632. In 2017,
Industry had a 73% share on the local GDP (IBGE).
Despite improvements in economic dynamics, jobs generation and progress in
national indexes of wealth, health and education such as the Firjan Municipal Development Index (IFDM) since 2004, local inhabitants are very dissatisfied with environmental impacts and poor standards of living in both rural and urban areas of
the municipality (Cabral et al. 2011; Silva et al. 2014). Cruz et al. (2020) noticed
that some residents are not satisfied with the current safety, social infrastructure and
quality of life in the municipality, thus they do not feel the local government properly
uses the large sums of taxes it collects.