The involvement of the United States in the Serra Verde project in Goiás has accelerated the approval of a new national policy for critical and strategic minerals in Brazil, aimed at sovereignty and development.
The participation of the United States government in a significant rare earth enterprise in Brazil, the Serra Verde project located in Minaçu (GO), has had a major impact on the national political landscape.
This development catalyzed discussion and expedited the passage of crucial legislation in the National Congress: the national policy for critical and strategic minerals. The initiative, proposed by Congressman Zé Silva (União/MG), is now awaiting presidential sanction after being approved by the Senate.
This event underscored the urgency for Brazil to establish clear guidelines for investments in mineral assets of strategic importance. The growing global demand for these resources, driven by the race among major powers to secure their supply chains, highlighted the need for the country to defend its interests and guarantee its mineral sovereignty.
The Serra Verde Project Warning
The Serra Verde project, which previously belonged to a Brazilian group, was acquired by the U.S.-based USA Rare Earth. Subsequently, departments of the United States government began holding equity stakes, financing its expansion, and guaranteeing demand for the minerals produced.
For Congressman Zé Silva, this scenario highlighted Brazil‘s vulnerability in managing its strategic mineral resources without a well-defined policy.
The absence of specific criteria to regulate these investments sounded an alarm, demonstrating that Brazil needed to act to protect its assets and prevent the export of raw materials without value-added processing.
Details of the New National Policy
Bill PL 2780/2024 institutes the National Policy on Critical and Strategic Minerals and creates the National Council for the Industrialization of Critical and Strategic Minerals (CIMCE). This council will play a central role in the sector’s governance.
“The goal of this framework is to balance national sovereignty with openness to private capital, without the State interfering in commercial negotiations.”
Among the responsibilities of CIMCE are the ratification of major operations in projects enabled by the policy, the definition of the list of strategic minerals, the qualification of new projects, and the routing of priority ventures for simplified and special environmental licensing.
Incentives and Future Vision
Beyond analyzing investments, the new policy seeks robust development of the mineral sector. This includes fostering research, attracting private capital, and incentivizing the domestic processing of these minerals, aiming to reduce dependence on imports—a notorious problem in sectors such as fertilizers.
To this end, the legislation provides for instruments such as tax-incentivized debentures, tax credits, and the creation of the Mineral Activity Guarantee Fund (FGAM).
The framework also considers the potential inclusion of high-purity iron ore in the list of strategic minerals. The intention is to encourage domestic beneficiation, ensuring that Brazil no longer continues to export only low-value commodities, but rather products with higher added value.
The approval of this policy represents a strategic advancement for Brazil. By creating a robust regulatory framework for critical and strategic minerals, the country seeks not only to protect its natural resources but also to boost industrialization and innovation.
It is expected that this new legislation will strengthen national sovereignty, attract responsible investments, and contribute to the development of a more resilient economy focused on clean and sustainable energy, positioning Brazil as a key player in the global mining landscape.
