Brazil Congress Approves Critical Minerals Bill to Limit Raw Exports

The Congress of Brazil approved a critical minerals bill that increases government oversight of mining deals and establishes a special council to approve changes in control of mining companies. The legislation now awaits the signature of President Luiz Inácio Lula da Silva, who pushed for the law to protect national sovereignty and ensure Brazil captures more value from minerals used in smartphones, military drones, and electric vehicles.

To discourage the export of raw materials, the bill earmarks 5 billion reais in tax credits for domestic processing investments and creates a 2 billion reais mining guarantee fund. It also imposes a non-extendable 10-year cap on exploration permits for critical minerals.

Industry groups, including the Critical Minerals Association, warned that the increased scrutiny could deter foreign investment and called for more objective criteria for transaction approvals. The Brazilian Institute of Museums emphasized the need for predictability for investors as the government moves to shift the industry away from raw material exports toward domestic technological development.