The region contains large mineral reserves, including rich deposits of iron, manganese and niobium. The latter are important for manufacture of electronic devices such as computers and cellphones. The Companhia de Pesquisa de Recursos Minerais (CPRM) was authorized to extract minerals in a area of what is now the territory in 1975. The CPRM is owned by the Ministry of Mines and Energy. The 1988 constitution only allows mining on indigenous territories when authorized by a specific law. The Indians expressed opposition to mining. The Morro dos Seis Lagos Biological Reserve was created by Amazonas state decree 12.836 of 9 March 1990. In October 1997 a scheduled auction of the niobium reserve was cancelled due to pressure from the Brazilian Institute of Environment and Renewable Natural Resources, which objected to opening the mine since it is within two protected areas. In 1999 the mining concession was annulled at the request of the Public Ministry of the State of Amazonas. The Balaio Indigenous Territory was identified by ordinance 993 of 20 September 2000. The Fundação Nacional do Índio (FUNAI) conditionally approved it on 22 August 2002. In 2006 Luciano de Vito was licensed to explore for cassiterite in of the territory. The territory was declared by ordinance 2.364 of 15 December 2006. It was formally approved ("homologated") by president Luiz Inácio Lula da Silva by decree on 22 December 2009. The decree recognized the overlap with the Pico da Neblina National Park created in 1979 and Morro dos Seis Lagos Biological Reserve created in 1990, but did not comment on the implications. This was one of nine indigenous lands recognized by the president on the same date, the largest being the Trombetas Mapuera Indigenous Territory with almost . In September 2015 FOIRN arranged an Internal Assembly of the Balaio Indigenous Association (AINBAL) with about 80 attendees to initiate preparation of the Territorial and Environmental Management Plan (PGTA) of the indigenous territory. FOIRN was supported by AINBAL, the National Indigenous Foundation (Rio Negro Region), the Chico Mendes Institute for Biodiversity Conservation (ICMBio) and the Instituto Socioambiental. Representatives of DSEI/CONDISI and the municipality attended. Problems discussed included lack of road maintenance and lack of adequate transport, the energy network, and unauthorized hunters and fishers.