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Brazil is revisiting rules that protect caverns from exploration and development with measures that could help advance energy projects and boost Vale’s iron-ore prospects in the country.

“It’s a sensitive legislation for the infrastructure sector including transport and power — not just mining,” said Ana Paula Bittencourt, a director within Brazil’s mining and energy ministry. “So revisiting the caves decree is a government mission.”

Brazil’s Environment Ministry is leading the technical discussions, Bittencourt said last week in an interview on the sidelines of a mining conference. Talks also involve Brazil’s Chief of Staff, who’s in charge of the country’s growth acceleration program, and Mines and Energy ministry. While there is a sense of urgency in revisiting the rules, she said, President Luiz Inacio Lula da Silva’s government is seeking to strike the balance between industry and protecting the environment.

Vale sees a potential to unlock 1.6-billion tons of iron ore reserves — including those in the Amazon rainforest — if the government tweaks rules around mining in caves, according to a September presentation. The strict regulations that protect cavernous zones limit Vale’s potential to expand in its richest deposits in Brazil. Reclassifying some caves could give the iron ore miner access to more reserves, according to the Rio de Janeiro-based company.