Fertilizers Receive Intermediate Priority in New Government Critical Minerals Policy.
The new National Policy on Critical and Strategic Minerals has assigned an “intermediate priority” classification to essential inputs for fertilizer production, such as phosphate, potassium, and sulfur. While this decision allows access to government incentives, it places these minerals below others like rare earths and lithium in terms of urgency for promotion, amid intense global competition for these resources.
The measure aims to boost the fertilizer supply chain in Brazil, a sector heavily dependent on imports. About 85% of the fertilizers consumed in the country are foreign‑origin, with potassium reaching a staggering 97% dependence. Including these inputs in the critical minerals policy, advocated since the legal framework’s drafting, is seen as a key step to mitigate this vulnerability.
Multiple Priorities for Strategic Minerals
The National Council for the Industrialization of Critical and Strategic Minerals (Cimce) defined three priority categories for a total of 27 minerals. Uranium, for example, falls into the highest priority class (Class I), alongside other elements such as rare earths, lithium, nickel, and cobalt. This classification is intended to direct investments and promotion policies strategically.
In the intermediate priority group (Class II), in addition to fertilizers, there are minerals of strategic importance to industry. Class III covers minerals of lower promotion priority, such as niobium, tin, iron, and gold, which will receive strategic monitoring and periodic reassessment.
Promotion and Control Mechanisms
The mineral classification will allow projects in these chains to compete for support instruments, including the Mineral Activity Guarantee Fund (FGAM), designed to share risks and facilitate project financing. This policy will also serve as a guide for acquisition and contract analysis, areas that generate significant debate due to potential state interference.
The implementation of the policy also marks a contest for steering the mineral agenda within the government. The Ministry of Development, Industry, Trade and Services (MDIC) has taken over the executive secretariat of the Cimce, surpassing the Ministry of Mines and Energy (MME) in this competition. The MDIC portfolio will be responsible for the technical analysis of projects and operations in the sector.
Next Steps and Impact on Agribusiness
The criteria for screening operations involving critical minerals will be detailed in an upcoming council meeting scheduled for November 20. This measure adds to other government initiatives, such as the Fertilizer Industry Development Program (Profert), approved in September, aimed at reducing import dependence and strengthening domestic production. The expectation is that this policy will significantly contribute to food security and the competitiveness of Brazilian agribusiness.