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[BUSINESS] · Brazil · 60 sources

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Brazil sanctions new laws for data centers and critical minerals

President Luiz Inácio Lula da Silva has sanctioned two major legislative packages aimed at strengthening Brazil's technological and industrial sovereignty.

The first, the Special Tax Regime for Data Center Services (Redata), provides five-year tax suspensions on Import Tax, IPI, PIS, and Cofins for equipment used in data centers. To qualify, companies must use renewable or low-emission energy, meet specific water efficiency standards, and dedicate at least 10% of their processing capacity to the domestic market. The government expects this to attract significant investment in cloud computing and artificial intelligence, with an estimated R$ 5.2 billion in tax exemptions in 2026.

The second, the National Policy for Critical, Strategic, and Rare Earth Minerals (PNMCE), establishes a framework to increase domestic value addition in the mining sector. It creates the National Council for the Industrialization of Critical and Strategic Minerals (CIMCE) to oversee strategic operations and partnerships. The policy includes a Mineral Activity Guarantee Fund (Fgam) that can reach R$ 5 billion and provides up to R$ 7 billion in incentives for mineral processing. Additionally, the budget for the Geological Service of Brazil will increase from R$ 8 million to R$ 300 million to support soil research.

Entities

Agência Nacional de Mineração · Alexandre Silveira · Brasil · Brazil · CIMCE · Conselho Nacional para Industrialização de Minerais Críticos e Estratégicos · Geological Service of Brazil · Geological Survey of Brazil · Government of Brazil · Luiz Inácio Lula da Silva · Ministry of Mines and Energy · Ministério de Minas e Energia

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3 days ago