Brazil has enacted a new legal framework for critical and strategic minerals, establishing the National Policy for Critical and Strategic Minerals and creating the National Council for the Industrialization of Critical and Strategic Minerals.
The policy seeks to move beyond extraction by promoting domestic processing, transformation, technological development and higher-value industrial activities.
The framework also introduces financing, tax, research and traceability instruments intended to support the development of strategic mineral supply chains.
Market Impact
The new framework may create opportunities involving:
- lithium, nickel, graphite and rare-earth projects
- processing and refining facilities
- battery and advanced-material supply chains
- mineral-related logistics infrastructure
- international technology partnerships
- strategic offtake arrangements
- project finance and foreign direct investment
Brazil’s challenge will be to convert mineral resources into integrated industrial chains capable of supplying energy transition, digital and advanced manufacturing markets.
Legal & Regulatory Implications
Investors should pay particular attention to the new governance framework.
Certain transactions involving critical-mineral projects may be subject to government review, including changes in direct or indirect corporate control and other arrangements involving strategic mineral rights.
Companies should therefore assess:
- corporate change-of-control requirements
- CIMCE procedures and future implementing regulations
- mineral-right transfers
- international supply and offtake agreements
- project registration and eligibility for incentives
- environmental licensing
- traceability and supply-chain compliance
- access to financing and tax incentives
- technology-transfer and domestic value-addition requirements
For international investors, regulatory screening should increasingly become part of transaction planning rather than a post-signing consideration.
Photo: Canva
