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Brazil advances critical minerals policy with added federal approvals

Brazil’s Senate has approved Bill 2,780/2024, which would require government approval for changes of control and other transactions tied to critical and strategic mineral rights before the legislation reaches the President.

Reported · Written up by our desk · Mining

Brazil is moving to expand its role in the global critical minerals market, but a new national policy approved by Congress could raise the bar for investor certainty. Mining.com says the Senate approved Bill No. 2,780/2024 on Sept. 2, creating a National Policy on Critical and Strategic Minerals, or PNMCE, after it previously passed the House of Representatives.

The bill now goes to the President, who can sign it into law or veto it in whole or in part, with timing highlighted as important as governments compete for reliable critical mineral supplies for the energy transition, advanced technologies, and defense. The long timelines for mine development and vulnerable supply chains are also cited as reasons for the growing push toward more dependable sourcing.

Under the proposed framework, the federal government would play a stronger role in how critical and strategic mineral assets are developed, financed, and transferred. The bill would establish the National Council for the Industrialization of Critical and Strategic Minerals, or CIMCE, to formulate policy, classify minerals, identify priority projects, and prepare a national sector plan.

For investors, the key change is a requirement for government approval, described as homologação, for certain transactions involving critical and strategic minerals. The policy would cover direct or indirect changes of control involving companies holding relevant mineral rights, along with approvals for other transfers or encumbrances of mineral rights, access to strategically important geological information, and supply contracts whose terms could affect Brazil’s economic or geopolitical security, according to Mining.com.

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