Lula Signs Critical Minerals Law, Creates Council to Vet Strategic Deals

President Luiz Inácio Lula da Silva signed Law 15.506 on Wednesday, establishing the National Policy for Critical and Strategic Minerals (PNMCE) and a presidential council with authority to approve or block transactions involving sensitive mineral assets. The ceremony took place at the Palácio do Planalto alongside the installation of the National Council for Industrialization of Critical and Strategic Minerals (CIMCE).

The law combines fiscal incentives with state control mechanisms. It creates a federal tax credit program worth R$ 1 billion annually from 2030 to 2034, totaling R$ 5 billion, covering up to 20% of eligible project expenses for mineral processing, manufacturing, and recycling. A guarantee fund of up to R$ 5 billion, with up to R$ 2 billion from the Union, will back qualifying ventures.

“Our sovereignty is non-negotiable. We are not and will never again be a colony of anyone.”

The CIMCE, housed in the presidency, comprises representatives from 13 ministries plus industry, mining, and municipal associations. It will review changes in corporate control, transfers of mining rights, and international contracts linked to critical minerals. Its first meeting is expected within ten days to define the official list of critical and strategic minerals.

Brazil holds 21 million metric tons of rare earth reserves, the world's second-largest after China, yet only about 25% of its territory has been geologically mapped. The Geological Survey of Brazil's research budget will jump from R$ 8 million to R$ 300 million to expand resource knowledge.

Lula framed the law as a sovereignty measure, declaring Brazil would no longer export raw ore "at banana prices" and calling political opponents who favor foreign control "traitors of the fatherland." The legislation allows the government to impose value-addition requirements on exports but does not ban raw ore shipments; details will be set in future regulations.