Brazilian Development, Industry, Trade and Services Minister Márcio Elias Rosa has affirmed that the government's mechanism for screening investments in critical and strategic minerals will be regulated to attract new business, explicitly stating it is not intended to drive investors away from the country. The declaration was made on Tuesday during a seminar at the Chamber of Deputies regarding the implementation of the new National Policy on Critical and Strategic Minerals, which was signed into law by President Luiz Inácio Lula da Silva in September.
The legislation mandates that specific operations involving strategic mineral assets undergo federal government analysis. While this measure has raised concerns among private sector representatives regarding legal security and potential increases in bureaucracy, Minister Rosa argued that such screening mechanisms are standard practice globally. He emphasized that while the rest of the world already conducts investment screenings, Brazil has not done so until now and must establish its own rules to keep pace with international market changes.
Under the new framework, the National Council for the Industrialization of Critical and Strategic Minerals will participate in analyzing and approving specific corporate operations. This includes changes in mining company control, significant acquisitions by foreign firms, transfers of mining rights, and international supply contracts that could impact Brazil's economic or geopolitical security. The model grants the government the authority to block operations that do not receive approval, effectively acting as a veto power over specific deals in the mineral sector.
Despite the legal provisions, the screening mechanism still requires detailed regulation. The government must define which operations are subject to review, establish the criteria for analysis, and outline the procedures companies must follow. The current lack of these definitions has generated anxiety within the private mining sector, with representatives warning that unclear rules could delay business and hinder the attraction of foreign capital in an industry reliant on high-value, long-term investments.
Minister Rosa indicated that regulating the screening process is a secondary priority. The government's immediate focus is to operationalize the new council, define Brazil's list of critical and strategic minerals, and identify priority production chains. The first plenary meeting of the council is expected to take place within 30 days, while the Chief of Staff's office plans to appoint a group of experts in the coming weeks to assist in formulating the mineral policy.
Additionally, Rosa highlighted that export restrictions imposed by China on certain minerals and associated products present expanded opportunities for Brazil. The nation aims to attract investment not only for extraction but also for processing and industrialization. A primary objective of the new Brazilian policy is to increase value addition to mineral production by encouraging the establishment of industrial stages within the country, thereby reducing dependence on exporting unprocessed raw materials.
Sources: CNN Brasil.