Brazil plans to compile a detailed map of critical mineral potential

According to a report on the BNAmericas website, the Brazilian government will establish a committee responsible for compiling a detailed map of the country's mineral resource potential, particularly focusing on so-called critical minerals. This issue has become more prominent amid tense trade relations with the US.

"I recently read an article stating that the US is interested in Brazil's critical minerals. Yes, if I don't even know about a mineral and it's already classified as critical, I'll keep it for myself—why would I let someone else take it away," President Lula said in a televised address on the 28th.

"Seventy percent of our territory and resources have yet to be explored, so we need to authorize companies to conduct exploration under our control. Once we grant a company the right to explore and it makes a discovery, that discovery cannot be sold, let alone the area containing minerals, because it belongs to us, to the Brazilian people, who must have the right to benefit from the wealth generated by these resources."

Gabriel Escobar, the US Chargé d'Affaires and Acting Ambassador to Brazil, recently met with representatives from the Brazilian Mining Association (Ibram) to discuss how both sides could address this issue. The talks also covered a planned visit by representatives from the Brazilian mining sector to the US to seek possible agreements, particularly surrounding critical minerals.

Lula's mention of critical minerals came after Trump announced a 50% tariff on Brazil, the highest tariff rate the US has imposed on any country so far.

Despite concerns from business leaders and analysts about the impact of the tensions on Brazil's political and economic situation, the US's interest in critical minerals may create opportunities for the country.

"Brazil still relies heavily on iron ore, and for years the country has been trying to diversify its mining sector. Accelerating the exploration of critical minerals and attracting the US as a buyer present an opportunity for Brazil to both diversify its mineral production and expand its customer base," believes an analyst from investment company AGF.

At the US's request, the purpose of Ibram's meeting was to discuss possible agreements on critical and strategic minerals, such as rare earths, nickel, lithium, and copper.

Since Trump announced a 50% tariff on Brazil starting from August 1st, the Brazilian government has been criticizing the US's unilateral actions.

However, in recent days, the Brazilian business community has been pressuring the government to negotiate on the tariffs. Although Lula has said he is open to dialogue with Trump, he will not allow the US to interfere in Brazil's internal affairs.

"In recent years, global interest in critical minerals has risen, largely driven by the energy transition. Now, with the Trump administration in power, we've seen a significant shift in the reasons behind this interest. "Currently, it is more related to technological projects and also closely linked to the defense industry," said José Carlos Martins, a board member of Brazilian iron ore miner Cedro Mineração and founder of Neelix Consulting Mining & Metals.