BRAZIL · MINING
Key Facts
- —The country Brazil has the second-largest rare earth reserves, per the US Geological Survey.
- —What happened A miners’ group said Thursday an idle council is stalling some deals.
- —The council Created 16 September and chaired by Lula’s chief of staff; never met.
- —The US angle It must approve takeovers and foreign stakes, including by US buyers.
- —Still open No date has been set for the council’s first meeting.
Brazil’s new critical minerals council, the gatekeeper for foreign rare earth deals, has yet to meet, a miners’ group warned.
Brazil created a critical minerals council on 16 September to vet foreign stakes in key mining firms, but it has never met. On Thursday, 8 October, the executive director of a group representing over 30 miners said the delay is stalling deals.
The delay matters in the US, where a federal lender committed up to US$565 million to a Brazilian rare earth mine. Brazil holds 11 million tonnes of rare earth reserves, almost six times the US total, says the US Geological Survey.
A Council Created on 16 September Has Not Met
The council, known by its Portuguese acronym CIMCE, was created by a law and a decree published on Wednesday, 16 September. President Luiz Inácio Lula da Silva, a leftist seeking a fourth term, signed both.
His chief of staff, Casa Civil minister Miriam Belchior, chairs a board of 13 ministers plus state, city, industry and university seats. Poder360, a Brasília news site, reported on Thursday that the government had promised a first meeting within 10 days.
No date has been set, and officials see little point in starting work during the election campaign, the outlet added.
What the Critical Minerals Council Must Approve
The law lets the council and the National Mining Agency screen four kinds of deals involving critical and strategic minerals:
- changes of control of companies holding mining rights, including indirect ones;
- significant foreign stakes in such companies, or access to strategic geological data;
- international supply contracts that could affect Brazil’s economic or geopolitical security;
- sales or transfers of mining titles granted by the federal government.
The criteria for that screening still have to be written by regulation. The council must also publish the official list of covered minerals, so firms cannot yet tell whether their projects qualify.
Miners Say Deals Are on Hold
Frederico Bedran runs the Critical Minerals Association (AMC), which says it represents more than 30 companies with projects in Brazil. He spoke at a Brasília seminar organised by Instituto Diálogos, an institute chaired by conservative senator Tereza Cristina.
“Today I can tell you that this is paralysing some of the deals,” Bedran said, according to Poder360. “Everyone has hit the brakes.”
He said foreign investors are pausing talks until the rules exist, and projects could move abroad if regulation drags on. The sector cannot wait “a year, a year and a half,” he said.
Bedran also told the seminar that mining “does not need the hand of the state,” the newspaper Estadão reported. He asked for tax incentives and finance for early-stage projects.
What It Means for You
For US investors, the council will decide how easily American capital can buy into Brazil’s critical minerals. China mined 270,000 tonnes of rare earths in 2025 and Brazil about 2,000, the survey’s estimates show.
Nasdaq-listed USA Rare Earth closed its takeover of the Serra Verde mine in Goiás state on Thursday, 3 September, its filing shows. It paid US$300 million cash plus 126.8 million new shares and assumed a US government loan of up to US$565 million.
That deal closed two weeks before the law took effect. New takeovers or supply deals with US buyers now face screening rules that do not yet exist.
What Is Not Known
Bedran named no company, project or deal value, so the scale of the slowdown cannot be checked. The government has not given a date for the first meeting.
It is unclear which minerals will make the official list and what size of foreign stake will trigger a review. It is also unknown whether deals signed before 16 September fall under the new screening.
What Comes Next
Lula faces conservative senator Flávio Bolsonaro, son of former president Jair Bolsonaro, in the runoff on Sunday, 25 October. The winner takes office in January.
A paper bearing Flávio Bolsonaro’s campaign branding proposed a US partnership on critical minerals, the newspaper Estado de Minas reported in September. Its author, ally André Marinho, said it was his own initiative.
Poder360 reported that a council meeting this year is not guaranteed, even if Lula wins.
The delay does not mean foreign investment is barred. It means large deals have no clear approval path until the council sets its rules.
Frequently Asked Questions
What is Brazil’s critical minerals council?
It is CIMCE, a body linked to the presidency and chaired by the Casa Civil minister. It plans the national critical minerals policy and must approve takeovers, foreign stakes and sensitive supply contracts.
Why does it matter to the United States?
US government money already backs the Serra Verde rare earth mine, now owned by Nasdaq-listed USA Rare Earth. New US deals in Brazilian critical minerals would pass through the council’s screening.
Who is the Critical Minerals Association?
It is a trade group that says it represents more than 30 companies with critical minerals projects in Brazil. Its executive director, Frederico Bedran, says the delay is stalling some deals.
How big are Brazil’s rare earth reserves?
The US Geological Survey puts them at 11 million tonnes, second only to China’s 44 million. Brazil mined about 2,000 tonnes in 2025, against 51,000 in the United States.
Sources: Law No. 15,506 of 16 September 2026, Presidency of Brazil; Decree No. 13,118 of 16 September 2026, Presidency of Brazil; USA Rare Earth Form 8-K, US Securities and Exchange Commission; US Geological Survey, Mineral Commodity Summaries 2026: Rare Earths; Poder360; Poder360; InfoMoney / Estadão Conteúdo; Estado de Minas (all accessed 9 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief