Brazil's Mines and Energy Ministry may draft a new national mining code by the start of October, an industry group said.

    The new code will aim to modernize the laws governing mining in Brazil, including the entry of new players into the sector, Paulo Camillo Penna, president of the Brazilian Mining Institute, said in a Bloomberg Television interview. Creation of a national agency to regulate the sector is also under discussion and is expected to be considered by Brazil's Congress next year, he said.

    The new agency would replace the Mines and Energy Ministry's national mining department, DNPM, which grants companies licenses to prospect and mine mineral deposits.

    The initiatives are supported by Ibram, as the institute is known, which represents the country's largest mining companies.

    ``A national regulatory agency would be extremely positive,'' Penna said. ``We need to have a policy for minerals. It may seem incredible, but Brazil has no mining policy,'' he said.

    The proposed agency is also expected to regulate tax levels in the sector. According to Penna, mining companies operating in Brazil pay some of the world's highest taxes on 12 key mineral products.

    Uranium MonopolyBrazil's mining sector would also benefit from the state easing its monopoly on uranium mining, which is also under study, Penna said.

    ``We need steady rules and the breaking of the state monopoly, for Brazil to be able to master the complete cycle of uranium production,'' he said.

    Private-sector investments in uranium mining would allow Brazil to develop technologies for production of fuels for nuclear power plants and help move the country's uranium reserves to being the world's third biggest from sixth biggest, he said.

    ``Brazilian companies are mining for uranium abroad, why can't they do this here?'' he said.