Lula Sanctions Brazil's National Policy for Critical and Strategic Minerals, Emphasizing Sovereignty and Industry Development

On September 16, 2026, President Luiz Inácio Lula da Silva signed the National Policy for Critical and Strategic Minerals (PNMCE), a transformative law aimed at securing Brazil's sovereignty over its mineral resources while promoting the sustainable exploration, processing, and industrialization of critical minerals. This milestone legislation establishes governance rules, incentives, and a strategic framework to move Brazil beyond being a raw material exporter toward becoming a leader in mineral processing and technological value addition.

Lula condemned internal political adversaries who, in his view, have threatened Brazil’s mineral sovereignty by attempting to sell critical minerals and rare earth elements at undervalued prices to the United States. He referenced historical exploitation of Brazil’s iron ore exports, declaring, “Our sovereignty is not for sale. The wealth of Brazil has one owner: the Brazilian people.” This rhetoric was contextualized by concerns over foreign acquisition of the Serra Verde rare earth mine by a U.S. company, USA Rare Earth, which triggered governmental alarm.

The PNMCE law creates the National Council for the Industrialization of Critical and Strategic Minerals (Cimce), which will oversee policy implementation and development, including identifying and prioritizing critical mineral projects. The law introduces robust incentives such as a federal program allowing companies to convert up to 20% of their expenses into tax credits (capped at R$1 billion annually from 2030 to 2034), and a Mineral Activity Guarantee Fund initially funded with R$2 billion to support research and social-environmental commitments.

Minister of Mines and Energy Alexandre Silveira highlighted Brazil’s global leadership in niobium reserves and growing production of lithium and rare earth elements, essential for advanced technology sectors like energy transition, electronics, and defense. Investments in geological research will significantly increase, rising from R$8 million to R$300 million by 2027.

The legislation also mandates environmental safeguards, including a low-carbon mineral certificate and a national registry for sustainable projects, reflecting a commitment to socially just and environmentally responsible mining. A national network for research, technological development, and training is planned to strengthen Brazil’s capacity in this strategic sector.

In sum, the National Policy for Critical and Strategic Minerals marks a pivotal change in Brazil’s approach to its mineral wealth, blending economic, technological, and environmental priorities while asserting national control in an internationally competitive arena. The Cimce’s first meeting is anticipated within ten days, initiating the operational phase of this critical policy.