Brazil is moving decisively to modernize its mineral policy as Congress advances a sweeping mining-code reform aimed at regulating critical-mineral development and clarifying operational rules in sensitive regions, particularly the Amazon. Lawmakers contend that the existing framework—primarily focused on iron ore and gold—is no longer aligned with the geopolitical and industrial demands of the energy transition era.
A key aspect of the reform is the creation of a dedicated legal category for critical minerals, including lithium, nickel, rare earths, niobium, and graphite. This framework is designed to accelerate permitting for strategic projects while maintaining strict environmental and social safeguards, addressing concerns over deforestation, Indigenous land rights, and ecosystem protection.
The reform also targets permitting inefficiencies. Overlapping federal and state regulations have long frustrated companies, inflating costs and delaying projects. The new code proposes harmonized approval procedures, specialized regulatory units, and digital monitoring tools to reduce timelines and attract both domestic and international investment. This approach aligns Brazil with global efforts to diversify battery-metal and rare-earth supply chains outside traditional suppliers.
Mining in the Amazon remains a contentious topic. Some legislators favor strict exclusion zones, while others support technology-driven, controlled operations within designated corridors. The government emphasizes that transparent processes, Indigenous consultation, and strict enforcement are prerequisites for any expansion in the region.
If successfully implemented, the reform could position Brazil as a leading global supplier of critical minerals while addressing longstanding regulatory gaps. The next few months will be critical as Congress seeks to deliver a modern, investment-friendly mining code that balances industrial growth, environmental protection, and community rights.
