Brazil's Chamber of Deputies Approves National Policy for Critical and Strategic Minerals

The Chamber of Deputies in Brazil has approved the National Policy for Critical and Strategic Minerals (PNMCE), a landmark legislation aimed at boosting the country's capacity in mining, processing, and transforming minerals essential for high-tech industries such as smartphones, electric vehicles, and defense equipment. The project, originating from Deputy Zé Silva and supported by Deputy Arnaldo Jardim, formalizes critical minerals as those at risk of supply shortages impacting key sectors like energy transition and national security, while strategic minerals are defined by their significance to Brazil’s trade surplus and technological development.

Key provisions include the creation of a R$ 2 billion fund supported by contributions from mining companies, which must allocate a portion of their gross operational revenue to this fund over six years. Additionally, the federal government will implement a program offering R$ 5 billion in tax incentives between 2030 and 2034, with annual incentives amounting to R$ 1 billion to encourage beneficiation and transformation activities within the mineral sector.

The legislation also establishes the National Council for the Industrialization of Critical and Strategic Minerals (CIMCE), tasked with overseeing mineral qualifications under this policy and revising the critical mineral list every four years. The policy prioritizes auctioning areas with critical mineral potential through the National Mining Agency (ANM), reinforcing the sector’s growth prospects.

While proponents emphasize the policy's role in strengthening Brazil's global position in the minerals market and promoting sustainability through urban mining and recycling initiatives, critics have expressed concerns over increased foreign investment and the limited role of the state. Some argue that broad definitions risk benefiting non-critical activities and fear diminished state control, advocating instead for a strong state-owned enterprise to manage these strategic resources.

The bill now progresses to the Senate for further consideration as Brazil seeks to secure its mineral supply chains and foster an innovative economy rooted in critical and strategic mineral development.