Brazil’s critical minerals push: key project and licence risks for engineers
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Brazil’s newly approved Bill No. 2,780/2024 creates the National Policy on Critical and Strategic Minerals (PNMCE), establishing a CIMCE council of up to 20 members to classify minerals, prioritise projects and oversee transactions involving changes of control, foreign “significant influence”, strategic geological data access and sensitive offtake contracts. Exploration licences for critical/strategic minerals face an absolute 10‑year term with no extensions or tolling except for environmental licensing, raising timing risk where deposits are complex or critical minerals are identified mid‑programme. To offset tighter oversight, the bill enables a BRL 2 billion Mineral Activity Guarantee Fund funded by a 0.2% revenue levy, mandates 0.3–0.5% R&D spend, and offers CSLL tax credits capped at BRL 1 billion per year (2030–2034) for domestic processing investments.
Technical Brief
- Government “homologação” will be mandatory for any direct or indirect change of control in companies holding relevant critical/strategic mineral rights.
- Foreign acquirers gaining “significant influence” (not only majority control) over such companies also trigger approval.
- CIMCE’s remit extends to approving encumbrances or transfers of mineral rights, not just M&A transactions.
- Access to “strategically important” geological information will be regulated, potentially constraining data rooms and technical due diligence.
- Long-term offtake or supply contracts whose terms affect Brazil’s economic or geopolitical security will fall under review.
- A National Registry will capture projects with existing critical mineral resources and those in areas later designated “strategic” by the executive.
- Criteria for project prioritisation explicitly include local procurement, domestic value addition, environmental protection, community engagement and national sovereignty.
- Existing Brazilian mechanisms for force majeure or access disputes are not incorporated into the new 10‑year exploration cut-off, increasing tenure-risk asymmetry.
- Incentive tools extend beyond tax credits to include Reidi infrastructure tax benefits and incentivised debentures for exploration, mining and processing.
- For other jurisdictions considering similar regimes, the Brazilian model couples security screening with value-add incentives but leaves key definitions to secondary regulation.
Our Take
Brazil-focused nickel and rare earths assets already feature in our coverage via the EU’s scrutiny of MMG’s planned purchase of Anglo American’s Brazilian nickel business, suggesting that projects falling under the new critical minerals framework will face not only domestic but also foreign competition and regulatory attention.
The mandated 0.3–0.5% of gross operating revenue for research, development and innovation in Brazil’s critical minerals sector is material enough to steer copper, graphite and rare earth operators towards in-country processing and technology partnerships, rather than pure export of concentrates.
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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