Abstract
The Financial Compensation for the use of Mineral Resources - CFEM, is a compensation for the mining activity in the municipalities where it is allocated. This study shows the importance of CFEM in the State of Minas Gerais - Brazil, where the mining activity is very important. The importance of CFEM is on its application on the counties, as it must be used in projects that bring improvements on the life conditions of the population. Usually, the HDI – Human Development Index of the municipalities where mining projects are developed is higher than the HDI of the State in which such projects are located. However, the correct management of this compensation must be reconsidered focusing on the development of local communities. It is important to highlight that, besides CFEM, the mining companies develop many other projects related to culture, education, sports, among others in the communities where they are located, bringing benefits for the population. With the new mining code, some changes in CFEM are expected, mainly in its calculation and in the percentages of some mineral resources taxes. Besides, a better distribution of the values is being considered, mainly associated to surrounding counties which are also affected by the mining activities. Thus, CFEM is understood as an important compensation for the mining activity that can bring many benefits if well applied and managed.
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