Government rules out TerraBras, mandates local processing of critical minerals: Brazil Minister

Sao Paulo [Brazil], May 4 (ANI): Brazil's federal government has ruled out creating a state-owned company for the critical minerals sector, instead focusing on policies to boost domestic processing and industrialisation of strategic resources. The position was outlined by Development, Industry, Trade and Services Minister Marcio Elias Rosa in an interview, as part of broader efforts to reshape the country's mineral policy.

The government's 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 prevent Brazil from remaining an exporter of raw materials without value addition, and instead strengthen domestic supply chains.

Rosa emphasised the need for a structural shift, arguing that exporting unprocessed minerals limits the sector's growth. The government is considering a special tax regime to incentivise companies to invest in refining and processing within Brazil. Benefits, including tax credits, would be tied to the level of industrialisation achieved, as reported by Brasil 247

The proposal also includes tighter oversight of foreign investments and potential restrictions on exports of critical minerals, reflecting their strategic importance. The minister flagged concerns over the $2.8 billion sale of the Serra Verde rare earths mine in Goias to a US firm, noting the deal could face scrutiny.

Highlighting the global relevance of rare earth elements, Rosa said such resources are essential for emerging industries and must be managed in the national interest. He also reiterated that mining policy remains under federal jurisdiction.

On trade, the minister welcomed the provisional implementation of the Mercosur-European Union agreement, calling it a major opportunity for Brazil. The government expects export growth and broader economic gains, while maintaining safeguards for sensitive sectors.

Rosa added that Brazil's approach aligns with its New Industry Brazil initiative, aimed at strengthening key sectors. He stressed that effective policy decisions now will determine whether the country secures long-term industrial growth and economic sovereignty. (ANI)

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