The federal government has centralized the governance of critical minerals at the Planalto Palace, creating the Cimce council and a R$2 billion fund to strengthen national sovereignty.
The government of Luiz Inácio Lula da Silva has formalized a new regulatory framework for Brazil’s extractive sector. With the sanction of the National Policy on Critical and Strategic Minerals (PNMCE), the Executive Branch takes direct control of decisions regarding essential inputs for the energy and technological transition, such as lithium and rare earths. The strategy aims to shield the country amidst the intense global race for resources that currently support clean energy and defense industries.
With the creation of Cimce (National Council for the Industrialization of Critical and Strategic Minerals), the Planalto ensures a robust decision-making structure coordinated by the Civil Affairs Office. In addition to institutional support, the measure introduces Fgam, a guarantee fund with a R$2 billion contribution to foster mineral activity, seeking to attract investments while conditioning the sector’s development on value addition within Brazil’s borders.
Governance and National Strategy
The new policy, discussed in an environment of strong geopolitical pressure between China, the United States, and the European Union, is seen as a move to protect sovereignty. Brazil, which holds a quarter of the global reserves of essential minerals, seeks to reduce its status as a mere exporter of raw commodities.
Cimce will function as a transversal collegiate body, integrating 13 ministerial portfolios and representatives from various sectors of society. As highlighted in the regulation, the group will be led by the MDIC (Ministry of Development, Industry, Trade, and Services) and will have the final say on priority projects, international partnerships, and mineral expansion plans.
Control and Approval
One of the most debated points during the processing of Bill 2.780 in the Legislature was the government’s power to interfere in corporate transactions. Initially intended as “prior approval,” the state’s prerogative was adjusted by the rapporteur, Eduardo Braga, to “approval.” In practice, the State retains the prerogative to validate or veto changes in control of companies holding mineral rights, ensuring that strategic operations align with national interests.
Leonardo Jardim stated:
The country cannot simply hand over its resources in their raw form
signaling that the strategy aims to prevent Brazil from losing control over assets vital to the future of global technology.
Incentives for Mineral Transformation
In addition to management, the project innovates with the PFMCE (Federal Program for Beneficiation and Transformation of Critical and Strategic Minerals). This pillar foresees an aggressive fiscal incentive policy, allowing companies to deduct up to 20% of expenses incurred in mineral beneficiation on national territory.
With a ceiling of R$5 billion made available between 2030 and 2034, the program aims to enable the refining chain in Brazil. The expectation is that this infrastructure will allow the country to transition from being solely a raw material supplier to a technological processing hub, balancing the trade balance and meeting internal demands for sustainability and industrial innovation.
