< Back to all clusters
[BUSINESS] · Brazil · 24 sources

started · updated

Brazil Senate approves critical minerals policy with R$ 7 billion in incentives

The Brazilian Senate has approved the National Policy for Critical and Strategic Minerals (PL 2780/2024), a legislative framework designed to boost domestic processing and industrialization of essential resources like rare earths, lithium, and cobalt. The bill, which now moves to President Luiz Inácio Lula da Silva for sanction, aims to transition Brazil from a raw ore exporter to a value-added industrial player in the global energy transition and technology sectors.

The policy includes up to R$ 7 billion in government incentives. This package consists of R$ 2 billion for the Mineral Activity Guarantee Fund (FGAM) to support credit for mining projects, and R$ 5 billion in tax credits specifically for mineral beneficiation and transformation within Brazil. To fund these initiatives, mining companies will be required to allocate 0.2% of their gross operating revenue to the FGAM and 0.3% to research, development, and innovation (R&D&I) for the first six years.

The legislation also establishes a National Council for the Industrialization of Critical and Strategic Minerals, which will have the authority to oversee and approve significant changes in corporate control and international operations within the sector. While mining industry representatives have praised the bill as a positive step for investment and technology, some municipal associations have expressed concerns regarding the lack of guaranteed benefits and job creation for the specific territories where extraction occurs.

Entities

Brazil · Brazilian Senate · China · Eduardo Braga · IBRAM · Luiz Inácio Lula da Silva · National Mining Agency · USA Rare Earth · United States

Claims

What the coverage asserts, and how many sources carry each claim.

Sources

16 days ago