Government Consolidates Control Over Strategic Minerals in Bill to be Sanctioned.
The national policy for critical and strategic minerals is moving towards consolidation under strong governmental influence. After Senate approval, the bill establishing the legal framework for these essential inputs now proceeds to presidential sanction.
The proposal aims to guarantee national sovereignty over resources vital for the energy transition and the Brazilian economy, sparking debates about the roles of the state and private initiative in the sector.
The text, which preserves the essence advocated by President Luiz Inácio Lula da Silva‘s government, establishes the National Policy for Critical and Strategic Minerals (PNMCE) and the National Council for the Industrialization of Critical and Strategic Minerals (CIMCE).
The approval by symbolic vote in the Senate, after passing through the Chamber of Deputies, represents a significant advancement in the regulation of a sector of high geopolitical and economic relevance.
National Sovereignty and Government Control
One of the central points of the bill is the power granted to the federal government in managing minerals considered critical. The CIMCE will have the prerogative to periodically define the list of these minerals, authorize projects, and approve corporate operations deemed relevant.
This authority, which drew criticism from the private sector and liberal factions, was maintained in the final text, reaffirming the commitment to so-called “national sovereignty.”
The Council’s composition reflects this priority, with a predominance of representatives from the Executive Branch. The provision for up to 15 federal government members, contrasting with only two from the private sector, in addition to academic and subnational representations, signals the intention to steer public policies toward national interests.
Senator Eduardo Braga (MDB/AM), the bill’s rapporteur in the Senate, stated:
We understand that the other amendments would be outside the scope of the proposal, contrary to aspects of national sovereignty and best practices for the development of the mineral sector, or are applicable as infra-legal regulation.
Balance and Limits for Management
Despite the strong governmental direction, the bill sought to establish limits and avoid overlapping responsibilities. An amendment presented by Senator Tereza Cristina (PP/MT) was added, prohibiting the accumulation of attributions that are already the responsibility of the National Mining Agency (ANM).
Thus, the ANM maintains its regulatory and oversight functions, while the CIMCE will focus on policy formulation.
The senator explained:
The inclusion of this caveat does not create new competencies, does not transfer attributions between agencies, and does not alter the current legal regime of regulation, oversight, granting, or licensing.
Focus on Critical Minerals and Value Addition
While the main focus is on minerals essential for the energy transition, such as lithium, nickel, and rare earths, the bill also covers strategic minerals. Iron ore, one of Brazil’s main export products, falls into this category and will also be subject to the new policies.
The legislation provides mechanisms to encourage value addition on the export of raw ore, aiming to stimulate domestic processing. The intention is to advance in the production of higher value-added products, such as pellet feed for direct reduction, DRI (direct reduced iron), and HBI (hot briquetted iron).
Congressman Arnaldo Jardim (Cidadania/SP), the rapporteur in the Chamber, highlighted the measure’s importance for the country’s development:
We do not want to be just a commodity supplier; we want to add value, attract technology, and receive massive investments that generate development and jobs in our country.
The approval with support from various parties reinforces the pursuit of consensus around these objectives.
