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Brazil’s bigger role in critical minerals: policy and project signals for engineers

September 8, 2026|

Reviewed by Joe Ashwell

Brazil’s bigger role in critical minerals: policy and project signals for engineers

First reported on MINING.com

30 Second Briefing

Brazil’s Senate has approved a National Policy for Critical and Strategic Minerals, creating a presidential council empowered to review changes in control of companies holding critical mineral rights, scrutinise foreign influence and tie exports to value‑addition and processing commitments. The move comes as USA Rare Earth’s US$2.8 billion acquisition of Serra Verde and its 15‑year offtake of mixed rare earth carbonate, plus Australian‑backed projects like Viridis’ Colossus ionic‑adsorption clay deposit, position Brazil as a key rare earths supplier. Incentives include a 2‑billion real mineral guarantee fund and up to 5 billion reais in tax credits over five years for processing and transformation plants.

Technical Brief

  • Screening mechanism can reach indirect “significant foreign influence” and long-term international supply agreements affecting security.
  • Companies must disclose export destination, final beneficiary and processing degree, enabling traceability of critical mineral flows.
  • USA Rare Earth’s US$2.8 billion Serra Verde deal centres on the Pela Ema rare earths operation in Goiás.
  • Pela Ema currently produces all four key magnetic REEs: Nd, Pr, Dy and Tb in mixed carbonate form.
  • Viridis’ Colossus ionic-adsorption clay project in Minas Gerais targets commercial MREC production start-up in 2028.
  • Viridis is negotiating with Solvay to link Brazilian MREC output to established European separation and magnet customers.
  • A Viridis–Ionic Rare Earths demonstration plant at Poços de Caldas will test magnet recycling into separated REO products.
  • State development bank BNDES, innovation agency Finep and tax-incentivised bonds are flagged as primary project finance channels.
  • Separate Terrabras proposal for a state rare earths miner was dropped, with IBRAM opposing direct state competition with private operators.

Our Take

Vale Base Metals’ presence in this Brazil critical minerals policy piece sits alongside several recent items in our database on its copper-focused technology roll‑outs at Salobo, signalling that Vale is positioning both base metals and rare earths as part of a broader ‘future metals’ narrative in the country.

The 15‑year rare earths offtake linked to Serra Verde and the 2028 production horizon for Viridis’ Colossus project mean Brazil’s policy tools (tax credits and the mineral guarantee fund) are being introduced just as long‑dated supply contracts are locking in, which is likely to give Brasília leverage in negotiating local processing commitments with companies such as USA Rare Earth and Ionic Rare Earths.

Within our 121 Policy stories, Brazil appears less frequently than jurisdictions like the EU or Australia on critical mineral resources, so this package of incentives around rare earth oxides and magnetic rare earths marks a notable attempt to move from being a raw-materials supplier to a policy‑active player in the rare earth value chain.

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Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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