Brazil's National Mining Agency Director Arrested in Major Iron Ore Fraud Probe

High-Ranking Officials Detained in 'Operation Rejeito'

Brazil's Federal Police (PF), in conjunction with the Office of the Comptroller General (CGU), launched 'Operation Rejeito' on Wednesday, September 17, leading to the arrest of Caio Mário Trivellato Seabra Filho, the Director of the National Mining Agency (ANM), and Rodrigo de Melo Teixeira, a former Federal Police Director who currently serves as the Director of Administration and Finance of the Geological Service of Brazil (SGB). The arrests are part of a wide-ranging investigation into alleged fraud in the authorization process for iron ore mining in the state of Minas Gerais.

The operation involved the execution of 79 search and seizure warrants and 22 preventive arrest orders across Minas Gerais. Authorities also ordered the temporary removal of public officials from their positions and the freezing of approximately R$1.5 billion (around US$283.21 million to US$300 million) in assets belonging to those under investigation.

Allegations of Widespread Corruption and Environmental Damage

Investigators allege that a complex criminal network fraudulently obtained environmental permits and licenses to illegally extract iron ore from protected sites and areas close to conservation zones, leading to 'serious environmental consequences and a high risk of social and human disasters.' The scheme reportedly involved bribing public servants in various state and federal environmental and mining inspection agencies, including the ANM, the State Environmental Foundation (FEAM), the State Forestry Institute (IEF), and the State Council for Environmental Policy (COPAM).

The charges against the individuals under investigation include:

• Environmental crimes
• Misappropriation of federal assets
• Active and passive corruption
• Criminal organization
• Money laundering
• Obstruction of investigation of a criminal organization

The Federal Police identified at least 42 shell companies allegedly used to launder money and conceal the illicit origin of funds.

Key Figures and Financial Scope of the Scheme

Beyond the ANM Director and the former Federal Police Director, other prominent figures targeted in the operation include Alan Cavalcante do Nascimento, identified as the leader of the criminal organization, and João Alberto Paixão Lages, an alleged political articulator. The investigation also implicated Rodrigo Gonçalves Franco, president of FEAM, and Arthur Ferreira Rezende Delfim, a FEAM director, among others.

The illicit activities are estimated to have generated at least R$1.5 billion for the group over time. Furthermore, projects linked to the network that are currently under suspicion could have an economic potential exceeding R$18 billion (approximately US$3.6 billion). One company, Aiga Mineração S.A., is accused of illegally appropriating a pile of tailings valued at R$200 million.

Official Responses and Ongoing Investigation

The National Mining Agency (ANM) stated it became aware of the operation through media reports and had not yet received official notification regarding the court orders. The Geological Service of Brazil (SGB) clarified that the facts under investigation related to Rodrigo de Melo Teixeira occurred prior to his tenure at the SGB.

The state government of Minas Gerais affirmed its commitment to cooperating with authorities and stated that while suspicious projects would be reevaluated, environmental licensing in the state would not be halted to preserve jobs and income. The investigation remains ongoing, with authorities continuing to gather evidence and identify all involved parties.