Brazil’s federal government has dismissed plans to create a state-owned company for critical minerals and will instead focus on policies to expand domestic processing and industrialisation of strategic resources, Development, Industry, Trade and Services Minister Márcio Elias Rosa said. His comments came in an interview outlining the administration’s approach to reshaping the country’s mineral strategy.
The proposals are linked to a bill on the National Policy for Critical and Strategic Minerals, reported by Congressman Arnaldo Jardim. The central objective is to avoid the trap of exporting raw ores without adding value, and to build stronger domestic supply chains that support downstream industry.
Rosa argued a structural shift is needed because continued exports of unprocessed minerals limit long-term sector growth. To encourage local refining and manufacturing, the government is studying a special tax regime that would reward companies investing in processing in Brazil. Incentives such as tax credits would be graded according to the level of industrialisation achieved, according to reports.
The plan also calls for closer scrutiny of foreign investment and possible limits on exports of certain critical minerals, reflecting their strategic importance. Rosa cited concern about the $2.8 billion sale of the Serra Verde rare earths mine in Goiás to a US firm, saying transactions of that magnitude may come under review.
Emphasising the global significance of rare earth elements, the minister said these resources are vital for emerging technologies and should be managed in Brazil’s national interest. He reiterated that mining policy is a federal responsibility.
On trade, Rosa welcomed the provisional application of the Mercosur-European Union agreement, describing it as a major opportunity for Brazilian exports and broader economic gains while noting the need to protect sensitive domestic sectors.
The minister said the approach is consistent with the New Industry Brazil initiative, which seeks to strengthen key industrial segments. He warned that policy choices made now will shape whether Brazil secures lasting industrial development and economic sovereignty.
