Brazil Senate approves bill to regulate rare earth mining and boost exploration
Brazil's Senate passed a landmark bill establishing a legal framework and funding for critical mineral exploration, clearing the way for expanded rare-earth mining.
Brazil's Senate voted to adopt a pioneering law that will govern the exploration of critical and strategic minerals, positioning the country as a major alternative to China in the rare-earth market. The bill, already cleared by the lower house, creates a Mineral Activity Guarantee Fund with a 2 billion-real federal contribution and earmarks 5 billion reais in tax credits to encourage processing within Brazil. It also establishes a National Council to prioritize projects for support.
U.S. investors have recently acquired Serra Verde, the sole commercial rare-earth producer, in a deal valued at about $2.8 billion. President Luiz Inácio Lula da Silva is expected to sign the law, emphasizing Brazil's aim to become a net winner from its mineral wealth. Environmental NGOs, led by the Climate Observatory, warn the legislation may loosen safeguards and threaten communities near the Amazon. Experts call for a broader public debate on how the resources should be managed.
