Despite industry warnings that the new rules could dampen foreign investment appetite, Brazil’s Congress has passed a critical minerals bill granting the government greater authority to review mining deals.
Latin America’s largest economy holds the world’s second-largest rare earth reserves and is rich in other critical minerals needed for smartphones, EVs, and military drones.
The bill now awaits President Lula’s signature.
Lula had urged Congress to advance the legislation, incorporating it into his campaign platform centered on national sovereignty. He believes Brazil should not merely export mineral resources widely used across industries, but should also process them domestically to retain more value at home.
The bill text approved by the Senate includes the creation of a special committee with the power to approve changes of control at mining companies. This means foreign acquisitions that run counter to the government’s strategic interests could be blocked in the future.
![Rare earth prices overall in the doldrums; downstream inquiries and purchases cautious, limited transaction follow-through [SMM Rare Earth Daily Review]](https://imgqn.smm.cn/usercenter/eUMRo20251217171745.jpeg)
![[SMM Rare Earth Morning Meeting Summary] Pr-Nd oxide futures weakened with lower offers, dysprosium and terbium metals followed the decline, and magnetic material orders remained limited.](https://imgqn.smm.cn/usercenter/OJyAn20251217171745.jpeg)
