Brazil to map its critical minerals potential

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The Brazilian government will create a commission to develop a comprehensive map of the country’s mining potential, particularly focusing on so-called critical minerals, as the topic is gaining prominence in the wake of trade tensions with the US.

“I recently read an article saying that the United States is interested in Brazil’s critical minerals. Well, if I don’t even know about this mineral and it’s already considered critical, I’m going to keep it for myself – why would I let someone else take it?” President Luiz Inácio Lula da Silva said during a televised speech on Monday.

“We have 70% of our territory and resources that have not yet been explored, and we need to authorize companies to conduct exploration under our control. Once we grant a company authorization and it makes a discovery, it cannot sell it, much less sell the area containing the mineral, because that belongs to us, it belongs to someone called the Brazilian people, who must have the right to benefit from the wealth that these resources can generate,” he added.

The US chargé d’affaires and acting ambassador to Brazil, Gabriel Escobar, met recently with representatives of mining association Ibram to discuss a bilateral approach to the issue. The meeting included discussions about a planned visit by Brazilian mining representatives to the US to explore potential agreements, particularly around critical minerals.

Lula’s mention of critical minerals comes after Donald Trump’s announcement of 50% tariffs on Brazilian products, the highest imposed on any country so far, citing, among other reasons, political issues.

The move was linked to demands to suspend legal proceedings against right-wing former president Jair Bolsonaro, who is currently on trial over an alleged attempt to overturn the results of the 2022 elections, in which he was defeated by left-winger Lula.

Although business leaders and analysts view the tensions with concern due to their economic and political impacts on Brazil, the indication that the US is interested in critical minerals could create opportunities for the country.

“Brazil is still highly dependent on iron ore, which is sold in large quantities to China, and for many years it has been trying to diversify its mining sector. Accelerating exploration of critical minerals and attracting the United States as a buyer could be a major opportunity for Brazil, both to diversify its mineral production and to broaden its client base,” Pedro Galdi, an analyst at investment firm AGF Investimentos, told BNamericas.

The objective of the Ibram meeting, requested by the US, was to discuss potential agreements involving critical and strategic minerals such as rare earths, nickel, lithium and copper.

Since Trump announced plans for the 50% tariffs on Brazil starting August 1, Lula has used the situation to criticize the US administration as well as right-wing political parties in Brazil, which he claims are behind the decision.

In recent days, however, as the Brazilian business sector has increased pressure on the government to negotiate the tariff issue, Lula has said he is open to talks with Trump, while ruling out any intervention in the judiciary related to the trial of Bolsonaro.

“Global interest in critical minerals has been rising in recent years, largely driven by the energy transition. Now, since the start of the Trump administration, we see that the reasons for this interest have changed significantly. It is now much more linked to technology-related projects and also to supplying the defense industry,” José Carlos Martins, a board member of Brazilian iron ore miner Cedro Mineração and founder of Neelix Consulting Mining & Metals, told BNamericas.