Stakeholders in the Brazilian mining sector have growing expectations regarding the approval of a bill that seeks to establish guidelines for the advancement of critical mineral projects in the country.
The bill that creates the National Policy for Critical and Strategic Minerals (PNMCE) is currently being processed in the National Congress and includes, among other points, the requirement that the National Mining Agency (ANM) prioritize the analysis of projects related to critical and strategic minerals.
The legislative initiative aligns with the strategy of the ANM itself, which has had a specific division dedicated to the topic since August.
The bill, reported by federal deputy Arnaldo Jardim (Cidadania-SP), recently received support from the federal government, through the Minister of Mines and Energy, Alexandre Silveira.
With this proposal, the government aims to encourage mechanisms that guarantee the development of the production chain of these minerals in Brazil, encompassing everything from mineral research and production to processing and industrialization.
“We are talking about speeding up environmental and mining licensing, a guarantee fund for mining activity, and tax, financial, credit, and regulatory incentives,” Silveira said in a recent statement during Exposibram, the largest mining event in the country.
Historically a major global producer of iron ore and gold, Brazil is seeking to diversify its mineral production in light of its large reserves of raw materials considered critical for the technology and renewable energy sectors, such as lithium and rare earth elements .
However, according to experts, although the country has significant reserves, it still lacks the technology to process these materials.
“Currently, China dominates the processing techniques and machinery used in the beneficiation of critical minerals. For Brazil to develop this potential, it will be necessary to invest heavily in research, development, and regulation,” José Carlos Martins, a member of the board of Cedro Mineração and former executive of Vale, told BNamericas.
According to Martins, one way to accelerate this process would be to attract investment from the United States, a country that has already begun to show interest in the subject.
At the end of October, the chargé d’affaires of the United States Embassy in Brazil, Gabriel Escobar, met with the CEO of the Brazilian Mining Association (IBRAM), Raul Jungmann, to discuss an unprecedented collaboration between the US government, the Brazilian mining industry, and the federal government, with the goal of channeling US investments into critical and strategic mineral production projects in Brazil.
“The Brazilian government’s participation in this working group will still be discussed directly with the country’s authorities by the US embassy and IBRAM. Meanwhile, IBRAM will explore, together with its associated mining companies, investment opportunities in mineral production that may include potential capital contributions from the US, through development institutions,” Jungmann said in a statement.
https://www.bnamericas.com/en/analysis/brazil-seeks-to-advance-bill-on-critical-minerals