Brazilian government officials attend the signing ceremony for the National Policy on Critical and Strategic Minerals and Rare Earths in Brasília, marking the enactment of the new legal framework. Photo: Ricardo Stuckert

NNA News - Brazil has enacted a new national policy for critical and strategic minerals, introducing incentives for domestic processing and new government oversight of strategic mineral assets as global competition for rare earths and other critical resources intensifies. Report compiled by Brasil 247. 

President Luiz Inácio Lula da Silva signed Law No. 15,506 on Wednesday, establishing the National Policy for Critical and Strategic Minerals and creating the National Council for the Industrialisation of Critical and Strategic Minerals (CIMCE). The law covers research, mining, processing, transformation and urban mining, with the stated objective of increasing value addition inside Brazil.

At the signing ceremony, Lula linked the new framework to national sovereignty and industrial development, arguing that Brazil should avoid exporting minerals without developing industries around them. “We are not and will never again be a colony,” Lula said, according to reports of his speech. He also said, “We will not allow the history of iron ore to repeat itself,” while arguing that Brazilian sovereignty was not for sale.

The legislation goes beyond rare earths. It defines critical minerals in relation to supply risks affecting key sectors of the economy and establishes a broader framework covering minerals considered important for technological development, regional development, trade and emissions reduction.

The new framework provides financial incentives for companies that undertake processing and transformation in Brazil. The government says companies may receive tax credits equivalent to up to 20 percent of eligible spending under the Federal Programme for the Processing and Transformation of Critical and Strategic Minerals, subject to approval and an annual fiscal limit of R1 billion from 2030 to 2034. The law also establishes a guarantee fund that can receive up to R2 billion from the federal government.

Brazilian mining regulator ANM said the policy is intended to move the sector beyond extraction towards technology, industrial capacity and regional development. “The new policy connects stages that were previously treated separately, from mineral research to industrial transformation,” said ANM Director-General Mauro Sousa. He said the agency would be responsible for translating the policy into regulation, data and oversight, including mineral traceability.

The law also gives the CIMCE a role in examining certain changes in corporate control and foreign participation involving companies holding mineral rights for critical and strategic minerals. The government says the measure is intended to strengthen oversight while the ANM retains its regulatory, inspection and licensing responsibilities.

The mining industry has welcomed the creation of a national policy but has also raised concerns about regulatory predictability. The Brazilian Mining Association (IBRAM) said the legislation creates a new agenda requiring dialogue between government, companies, regulators, academia and wider society. “This new policy inaugurates a work agenda and will require open, solid and transparent dialogue between companies, government, regulators, legal professionals, academia and society,” IBRAM President Pablo Cesário said. He added that the new framework would require legal and regulatory certainty for investors.

Industry concerns were also raised before the law was enacted. The Brazilian Association of Mineral Exploration and Mining Companies (ABPM) said the council's powers over corporate changes involving foreign capital needed clearer criteria and deadlines, warning that excessive intervention could affect investment decisions.

The policy comes as foreign interest in Brazil's rare earth resources grows. In Goiás, USA Rare Earth completed its acquisition of Serra Verde Group earlier this month. Serra Verde operates the Pela Ema rare earth mine and processing plant, giving the US company control of a major Brazilian rare earth operation.

Brazil's challenge now shifts from legislation to implementation. The CIMCE must be established and the government must define the priority minerals, projects, regulatory procedures and traceability system needed to put the new policy into operation.