President Lula sanctions the National Policy on Critical and Strategic Minerals this Wednesday (9/16), aiming to boost industrialization and the energy transition in Brazil with robust tax incentives.
Brazil’s economic agenda gains a new and strategic chapter this Wednesday, September 16, with the sanction of the National Policy on Critical and Strategic Minerals (PNMCE) by President Lula. The act, scheduled for 10:30 AM at the Planalto Palace, formalizes a fundamental regulatory framework for the development of the high-tech industrial chain and the strengthening of the country’s position in the global energy transition.
This initiative represents a decisive step towards harnessing Brazil’s vast mineral resources, transforming extraction into added value through industrialization. The focus is on ensuring national sovereignty over these vital inputs for clean energy and sustainability technologies.
The Legislative Path and the Policy’s Pillars
The presidential sanction concludes a legislative journey that began with Bill 2.780/2024, authored by Congressman Zé Silva, and had Senator Eduardo Braga as rapporteur in the Senate, following the rapporteurship of Arnaldo Jardim in the Chamber of Deputies. The PNMCE not only establishes guidelines for the management of these resources but also creates mechanisms for promotion and governance.
Among the most anticipated innovations are financial incentives. The new policy foresees up to R$ 5 billion in tax credits between 2027 and 2034, directed at projects that promote mineral transformation. Additionally, it establishes the Mineral Activity Guarantee Fund (FGAM), with a contribution from the Union of up to R$ 2 billion, designed to mitigate exchange rate and liquidity risks in sector projects.
The Role of CIMCE and Discussions Around Governance
A central element of the PNMCE is the creation of the National Council for the Industrialization of Critical and Strategic Minerals (CIMCE). This council will be responsible for defining the list of strategic minerals, authorizing projects, and approving operations of great relevance in the sector. Its predominantly governmental composition generated debates during the project’s progression.
Despite criticism from liberal sectors and private sector representatives regarding what they considered potential excessive state interference, the final text maintained the proposed structure. The justification for this configuration is to strengthen national sovereignty and ensure that the development of the high-tech industrial chain in Brazil is aligned with the country’s strategic interests.
A source from the Ministry of Mines and Energy highlighted:
This legal framework positions Brazil as a key player in the global energy transition. We are not just extracting resources, but adding value, ensuring jobs and cutting-edge technology within our own territory, strengthening our autonomy and sustainability.
The sanction ceremony will be attended by ministers such as Alexandre Silveira, of Mines and Energy, and Márcio Elias Rosa, of Development, Industry, Commerce, and Services, who sent invitations to important sector businessmen, signaling the dialogue between government and private initiative for the implementation of the new policy.
Future Impact and Brazil’s Positioning
The National Policy on Critical and Strategic Minerals is an instrument aimed at accelerating the country’s industrialization, especially in advanced sectors. By providing predictability and financial incentives, the government expects to attract investment and technology, consolidating Brazil as a reliable and strategic supplier of processed materials for the battery, electric vehicle, and other clean energy technology industries.
With this legislation, Brazil seeks not only to extract its critical minerals but to transform them into high-value-added products, reducing dependence on international supply chains and promoting more equitable and sustainable economic development, aligned with the challenges of the global energy transition.
