Lula Encourages Brazil Senate to Approve Bill on Critical Minerals, Mining

Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

Summary

Lula met with congressional leaders to prioritize a vote on a critical minerals bill aimed at promoting investment in Brazil. The country ranks among the top 10 countries in minerals like niobium, graphite, rare earths, lithium, and others.

Brazil President Luiz Inacio Lula da Silva met on August 26 with Davi Alcolumbre, president of the Brazilian Senate, and Hugo Motta, president of the Chamber of Deputies, to prioritize a vote on certain matters, including a bill to establish a national policy for critical minerals.

The proposal, which is backed by Lula, was approved by the Chamber of Deputies in May 2026. The measure is meant to promote the exploration, exploitation, and processing of critical minerals in Brazil.

The bill is expected to be discussed in the Senate between August 31 and September 4. If approved without amendments, the bill will be sent to Lula to be sanctioned.

The bill contemplates financing and fiscal incentives for companies interested in developing projects in Brazil, including a 2 billion reais (US$388 million) guarantee fund to support project financing, up to 5 billion reais (US$971 million) in fiscal credits between 2030 and 2034, with individual credits of up to 20% of eligible spending, and priority analysis treatment for environmental licensing procedures.

More importantly, the bill aims to promote the development of supply chains around critical minerals beyond extraction, through incentives for processing, refining, and transformation. It also requires mineral traceability systems so institutions can track production through the supply chain.  

"This is the negotiation that is underway. Naturally, we look forward to it being approved. I understand that the project is very appropriate to the national interest," said Alexandre Silveira, Brazil's minister of mines and energy during the Exposibram mining industry conference in late August.

During the conference, the minister also announced that 300 million reais (US$58 million) would be allocated to the Geological Survey of Brazil (SGB) in the 2027 budget to expand research of the country's mineral potential and attract more interest investments to the country.

Brazil already holds vast mining resources and operations. The country has the world's largest reserves of niobium, and ranks second in rare earths and graphite reserves, according to data from the United States Geological Survey (USGS). It is also among the world's top 10 countries in manganese, nickel, lithium, and bauxite reserves, according to the USGS.

Despite the wealth of these minerals, Brazil has yet to fully develop the extraction of several of them. According to the National Secretary of Geology, Mining, and Transformation, the country holds almost 25% of the global reserves of rare earths, but only accounted for 0.5% of the world's production in 2025. Similarly, Brazil's graphite reserves are almost 24% of the global total, but it only produces about 3.6% of the supply. For manganese, it holds 16.6% of the reserves and accounts for 4% of global output.

Niobium is the exception, with Brazil representing almost 93% of the world's production and holding the world's largest reserves.

With the new bill, the government hopes to attract investments and turn these vast resources into business and economic opportunities to encourage domestic development and exports.

Brazil already has major mining operations in commodities such as iron ore and gold.

Industrial Info Resources is tracking 713 active metals and minerals plants and facilities in Brazil, and 728 active capital mining-related projects with a combined investment value of nearly US$70 billion. The Global Market Intelligence (GMI) Metals & Minerals Project Database offers an extensive list of detailed project reports.

Key Takeaways

• Lula met with the Senate's President to encourage a vote on Brazil's critical minerals bill.
• Brazil ranks among the top 10 holders of niobium, graphite, nickel, manganese, bauxite, and other mineral reserves.
• Industrial Info Resources is tracking more 728 active capital mining projects worth nearly US$70 billion in Brazil.

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).