Brazil creates policy to boost production of critical minerals

On September 16, Brazilian President Luiz Inácio Lula da Silva signed into law a bill establishing the National Policy on Critical and Strategic Minerals. This legislation allocates up to BRL 7 billion in investments through incentives for research, extraction, and processing of these minerals. Mining, which can span 40 years, requires fiscal stability to attract long-term investment, according to Pablo Cesário of the Brazilian Mining Institute.

The law creates the Mineral Activity Guarantee Fund (FGAM), with a BRL 2 billion contribution from the federal government to support priority projects. Brazil's Minister of Mines and Energy, Alexandre Silveira, emphasized that the policy will help Brazil understand its resources better and maintain control over production chains. The Geological Service of Brazil's budget will increase from BRL 8 million to BRL 300 million for soil research.

President Lula invited universities and federal institutes to develop new degree programs to train professionals for the expanding market, which includes industrialization, refining, and production technology. He condemned traitors who want to sell raw critical minerals to the US, emphasizing that Brazil's sovereignty is not for sale. The newly established National Council for the Industrialization of Critical and Strategic Minerals will coordinate, plan, and monitor national policy.

Critical minerals, such as rare earth elements, are essential for technology, automotive, defense industries, and achieving the energy transition. Brazil holds second-largest rare earth reserves in the world, with an estimated 21 million metric tons, but only about 25% of its territory has been mapped, revealing significant untapped potential. The list of strategic and critical minerals may change over time due to various factors.