New Government Policy of Brazil Accelerates Investments in Strategic Minerals and Strengthens the Climate Agenda Toward COP30.
Government of Brazil Creates Unprecedented Bonds to Attract Investments in Strategic Minerals and Accelerate the Energy Transition by 2050
The Government of Brazil announced this Friday (11/14) a new policy that changes the course of mining, by authorizing the issuance of debentures with tax benefits for projects related to strategic minerals.
The measure, signed by the Minister of Mines and Energy, Alexandre Silveira, in the Official Gazette, comes into effect nationwide and intends to attract billions in private investments to strengthen the national industry.
The initiative arises during COP30 in Belém (PA), marking Brazil’s commitment to climate neutrality by 2050.
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The USA and Australia reach a billion-dollar agreement of $3.5 billion, focusing on the refining of strategic rare earth metals, nickel, gallium, graphite, magnesium, and tungsten to challenge China’s dominance in critical minerals.
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Brazil exported tons of rare earth mining to Canada last week and is targeting the United States and China to sell critical minerals used in permanent magnets, electronics, electric vehicles, wind turbines, nuclear energy, and defense.
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The government may create a state-owned company rival to Vale in Brazil to explore rare earths, which are highly sought after by the USA and China due to their significance in today’s global technology landscape.
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The exploration of rare earths, lithium, copper, tin, and other critical minerals has surged in the last five years, encroaching on 278 indigenous lands, and the mining boom raises alarms in Brazil.
Portaria No. 120, therefore, creates a financial mechanism capable of stimulating the production of essential inputs for clean technologies — especially batteries, electric motor magnets, and materials used in the global energy transition.
Strategic Mining Takes Center Stage in the Country’s Climate Agenda
According to Alexandre Silveira, the new policy represents a turning point.
“Today we mark the beginning of a new era for the Brazilian mineral sector. We are laying the foundations for Brazil to become, in the coming decades, an essential player in the global economy, driving the energy transition”, the minister stated.
He emphasizes that the country wants to stop being merely an exporter of raw materials. Thus, the goal is to consolidate a complete production chain, with greater added value and a direct impact on Brazilian technological development.
Investments May Reach R$ 5.2 Billion Per Year
The new model foresees that up to 49% of the raised funds can be applied to mining and development, as long as they are associated with mineral transformation.
In total, the estimated investments reach R$ 5.2 billion per year, as follows:
- R$ 3.7 billion for mineral transformation
- R$ 1.5 billion for mining and processing
This division, therefore, prioritizes projects that strengthen national production of strategic minerals, reducing dependence on imported inputs.
Priority Projects Include Nickel, Cobalt, and Lithium
The policy paves the way for key ventures in the new green economy. Among those that may be included are:
- Projects for nickel sulfate and cobalt in São Paulo (SP) and Pará (PA)
- Units for lithium carbonate in Minas Gerais (MG)
These materials are essential for battery manufacturing, storage systems, and electric motors — pillars of decarbonization.
Therefore, the measure directly strengthens Brazil’s competitiveness in sectors related to the energy transition.
Policy Relies on Recent Legal Framework
The portaria is based on the Decree No. 11.964/2024, which regulates incentivized debentures linked to the mining sector.
The final text underwent public consultation and received technical adjustments before official publication.
Thus, the Government of Brazil reinforces legal security and creates concrete conditions to increase investments in the sector.
Brazil Seeks Global Leadership in Strategic Minerals Before COP30
The new policy integrates a broader strategy, led by the Federal Government, to position the country at the top of the strategic minerals chain.
Among complementary actions is the National Policy for Critical and Strategic Minerals, which strengthens mineral and energy security.
By reinforcing this alignment, Minister Silveira stated:
“We are positioning Brazil at the global forefront of the energy transition. We don’t want to be mere suppliers of raw materials, but protagonists in the value chain of essential minerals for the sustainable future of the planet.”
This statement summarizes the focus of the initiative: to transform mineral potential into sustainable development, innovation, and competitiveness — elements that Brazil wants to showcase at COP30, which will be held in Belém in 2026.
New Green Economy Accelerates With Support from Mining
The choice for debentures focused on strategic minerals shows that the Government of Brazil bets on mining as a driver of the energy transition.
Furthermore, the policy stimulates industrialization, creates new opportunities for skilled jobs, and strengthens high value-added production chains.
With this, the country takes a decisive step to establish itself as a protagonist in the new green economy while attracting global investments in a sector deemed essential for the future.

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