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Brazil seeks more control of critical mineral assets as screening expands
A new critical and strategic minerals law would let Brazil scrutinize changes in control of companies holding strategic rights and impose export and value-add disclosure requirements, with regulations to follow.
Brazil is courting foreign mining capital to develop its critical mineral resources while pushing to keep more processing and industrial value in-country, according to Mining.com. The latest push includes legislation that would give the government new powers to scrutinize who controls strategic mineral assets and how supply agreements could affect Brazil’s economic and geopolitical security.
Last week, Brazil’s Senate approved a National Policy for Critical and Strategic Minerals bill, which now goes to President Luiz Inácio Lula da Silva for final approval. The measure would create a council linked to the presidency that can review changes in corporate control of companies holding rights to minerals deemed critical or strategic, with the scope and mechanics dependent on post-enactment regulations.
The bill also would allow rules tying exports to technical requirements or value-addition commitments, and require companies to disclose details such as destination, final beneficiary, and degree of processing. Mining.com noted that exact transactions covered and how screening will operate will be determined by government regulations after the law takes effect.
The policy debate comes as foreign investment deals draw attention inside Brazil. Mining.com cited USA Rare Earth’s planned acquisition of Serra Verde, Brazil’s only large-scale rare earth producer, for about $2.8 billion, including the Pela Ema operation that produces neodymium, praseodymium, dysprosium, and terbium, as well as government concerns tied to Serra Verde’s 15-year offtake committing early output abroad.