Lula Presses Brazil’s Senate on the Critical Minerals Bill

Brazilian President Luiz Inácio Lula da Silva has been actively advocating for the passage of the Critical Minerals Bill (PL 2780/2024) in the Brazilian Senate. The bill, which was approved by the Chamber of Deputies on May 6, 2026, aims to establish a National Policy on Critical and Strategic Minerals (PNMCE) and create the Committee for Critical Minerals (CMCE).

The CMCE would be responsible for determining which minerals are critical, reviewing the list every four years, and overseeing mergers, acquisitions, and changes of control in priority mineral projects.

The bill would provide tax credits of up to R$5 billion (US$969 million) over five years, with a cap of R$1 billion (US$194 million) per year from 2030 to 2034. It would also establish a guarantee fund for mining ventures, drawing R$2 billion (US$388 million) from the federal treasury. Companies utilizing these benefits would be required to invest 0.3% of their gross revenue in research, increasing to 0.5% in the future.

While the Chamber approved the bill, the Senate has been awaiting a rapporteur for the measure since July 6, 2026. There is currently no Senate rapporteur assigned to the bill, which has contributed to its delay. The Chamber's rapporteur, Deputy Arnaldo Jardim, had previously rewritten the original draft by Deputy Zé Silva before the May floor vote.

The bill seeks to address Brazil's dependence on raw material exports and promote the export of knowledge instead. It also aims to strengthen the nation's position in the global minerals market, which is heavily dominated by China and other countries. The legislation is part of a broader push to modernize Brazil's mining framework and increase its share in global mineral production, currently dominated by China and other countries.