Lula Sanctions Law Centralizing Control Over Brazil’s Critical Minerals

Overview

• President Luiz Inácio Lula da Silva signed the Política Nacional de Minerais Críticos e Estratégicos on Wednesday, Sept. 16, 2026, and issued a decree installing the new Conselho Nacional para Industrialização de Minerais Críticos e Estratégicos (CIMCE).
• The law creates fiscal and financing incentives that total up to R$7 billion with R$5 billion in tax credits spread over five years and up to R$2 billion in federal participation for a guarantee fund (FGAM).
• CIMCE, linked to the Presidency and staffed by 13 ministries plus industry and state representatives, has the authority to evaluate and homologate transfers of corporate control, sharing of geological data, and international contracts for listed critical minerals, but its triage rules and approval thresholds remain to be written.
• The move responds to growing U.S. and other foreign interest in Brazil’s deposits — including U.S. DFC financing and the USA Rare Earth takeover of Serra Verde — and aims to keep value‑adding stages like refining and magnet or battery component production inside Brazil.
• Implementation questions persist and could affect investors because the council must still define the official list of critical minerals, internal regulations, timing for credit disbursements, and how FGAM and other tools will be used, with the government planning the CIMCE’s first meeting within about ten days.