Brazil’s National Policy on Critical and Strategic Minerals: FAQs

On September 16, 2026, Law No. 15,506 was enacted in Brazil to establish the National Policy on Critical and Strategic Minerals (PNMCE) and the National Council for Critical and Strategic Minerals (CIMCE). Decree No. 13,118/2026 was also issued on the same day to regulate the CIMCE. Below, we answer some of the most frequently asked questions about the practical impacts of the new law.

For the Brazilian mining sector, what changes? 

A more intensive government oversight framework has been created in regard to projects and operations involving minerals classified as critical or strategic. Corporate transactions, access to strategic geological information, certain international supply/offtake contracts, and the sale, transfer, or encumbrance of mining rights will be subject to screening and approval by government authorities via the CIMCE and Brazilian Mining Agency (ANM). Under the same framework, the law also creates a mandatory national critical and strategic mineral project registry (CNPMCE), a supply-chain traceability system, a low-carbon mineral certificate, new mandatory charges on the revenue of companies operating in the sector, and tax and financial incentive mechanisms tied to mineral processing and transformation in Brazil.

What are the critical and strategic minerals?

The law does not provide for a specific list of substances. Instead, it establishes the classification criteria and grants the CIMCE authority to define and update the list, which must be reviewed every four years and allow for the possibility of extraordinary reassessment. Critical minerals are those needed by key sectors of Brazil’s economy with limited, unstable or vulnerable availability, whether because of insufficient domestic production, dependence on imports, geographically concentrated supply, geopolitical risks, market restrictions, or technological bottlenecks. This poses a significant risk to the country’s economy, particularly in relation to the energy transition, food security, or national security and sovereignty in strategic sectors. Strategic minerals are those with significant domestic reserves that are essential for maintaining a trade surplus, supporting technological and regional development, or reducing greenhouse gas emissions. Until the CIMCE publishes a specific list, it remains officially unknown which substances will be subject to the new framework.

Will there be restrictions on foreign investment in mining in Brazil?

There is no blanket ban on foreign investment in the sector, but the law establishes a specific screening mechanism for critical and strategic minerals, with the authority to impose conditions on, or even prevent, certain transactions. Among other things, CIMCE approval is required for foreign companies to acquire a significant stake or significant influence in a company holding mineral rights to these substances, as well as for access to geological information of strategic interest. Approval is also required for changes in corporate control of such companies (regardless of the acquirer’s nationality) and for international supply/offtake contracts, agreements, or partnerships that may affect Brazil’s economic or geopolitical security, a scenario that, in practice, tends to affect primarily foreign counterparties or buyers.

The CIMCE’s executive committee will decide each case and may determine that the requirement does not apply, approve the transaction unconditionally or conditionally, or deny approval. Neither the new law nor the decree defines the objective criteria for determining whether a foreign company holds a ‘significant stake’ or exercises ‘significant influence’ – these criteria are to be addressed in future regulations.

What is the National Council for Critical and Strategic Minerals (CIMCE)?

The CIMCE is the body responsible for coordinating, planning, and monitoring the PNMCE (the new national policy). It operates under the Brazilian President’s Office and oversees the proposal of public policies and initiatives to develop production supply chains for critical and strategic minerals. The council’s responsibilities include analyzing and approving projects (after consulting with the ANM), ratifying changes in corporate control of companies holding mineral rights to these minerals, drafting the National Critical and Strategic Minerals Plan, defining and updating the list of substances, defining priority projects and eligibility guidelines for the Federal Critical and Strategic Minerals Processing and Transformation Program (PFMCE), and forwarding strategic projects to the Governing Council for special environmental licensing.

According to Decree No. 13,118/2026, the CIMCE will be made of 18 members, including 13 representatives of federal executive ministries, one member representing Brazil’s 26 states and Federal District, one representing Brazil’s municipalities, two representing the private sector with recognized expertise in mineral policy, and one member from a higher education institution, all of whom have voting rights.

The council also consists of three bodies – a plenary, executive committee, and executive secretariat. The Plenary is responsible for formulating policy, approving the National Critical and Strategic Minerals Plan, and defining the list of critical and strategic minerals based on a proposal from the Brazilian Ministry of Mines and Energy. The Executive Committee will be coordinated by the Ministry of Development, Industry, Trade, and Services, and feature representatives from seven ministries. Its role is to decide on individual cases, including approvals under the screening mechanism. The Executive Secretariat, which will operate within the same ministry, provides technical and administrative support. The decree has also established the Critical and Strategic Minerals Advisory Group, a consultative body of up to six experts that directly advises the Brazilian President, though it has no authority to make decisions.

What is the relationship between the Council and the Brazilian Mining Agency (ANM)?

The law upholds the ANM’s regulatory, supervisory, and licensing powers, and it remains responsible for auctions of mining areas (presumably arising from public offerings), in accordance with the minimum price and guidelines set by the Council. While the ANM handles operational regulation, the CIMCE focuses on formulating mineral policy and approving transactions such as changes in corporate control of companies that hold critical or strategic mineral assets. The CIMCE Executive Committee uses a screening process to decide on these applications.

What powers does the CIMCE have regarding transactions involving critical and strategic minerals?

The new law grants the CIMCE the authority to approve direct or indirect changes in corporate control of a company holding mineral rights to these critical or strategic minerals. The law also requires CIMCE approval for access to geological information of strategic interest; a foreign company’s acquisition of a material interest or significant influence; certain international supply (offtake) contracts, agreements, or partnerships that may affect Brazil’s economic or geopolitical security; and the sale, transfer, or encumbrance of mineral rights related to critical and strategic minerals.

The CIMCE Executive Committee will review applications through a screening mechanism and decide whether to waive the requirement, grant unconditional or conditional approval, or deny approval of these transactions. The law and the decree do not establish a procedure or deadline for these decisions. Such details will be set out in the CIMCE’s internal rules of procedure and in future regulations.

Does the Brazilian Mining Code still apply to critical and strategic minerals?

Yes. The law neither repeals nor replaces the Brazilian Mining Code (Decree-Law No. 227/1967). It simply creates an additional, specific regime for critical and strategic minerals that coexists with the Code’s general rules. Law No. 15,506/2026 itself refers to provisions of the Mining Code to govern specific situations – for example, to classify an area as ‘free’ for the first-come, first-served regime and to declare an area ‘subject to tender’ if an exploration license expires. Whereas the general framework of the Mining Code remains the foundation of mining law, the PNMCE adds obligations and controls when the mineral in question is classified as critical or strategic.

An important regulatory change is that the law establishes a specific 10-year time limit for exploration license in areas containing critical or strategic minerals. Note that this timeframe excludes any demonstratable period between submitting the application and the actual issuance of the environmental operating license. Unlike the extension normally permitted under the general provisions of the Mining Code, this deadline is absolute and may not be extended, suspended, or interrupted.

Will the ANM prioritize processing and review of critical or strategic mineral projects?

Yes, but only in a general sense. The law requires the Ministry of Mines and Energy, the ANM, and other entities within Brazil’s federal, state, and municipal administrations to prioritize the review of projects involving critical and strategic minerals. However, the law does not establish deadlines, objective criteria, or specific procedures for this prioritization; each authority must determine how best to regulate and implement this requirement. By contrast, areas with potential for these minerals must be prioritized in auctions conducted by the ANM, with a minimum price set by the ANM based on guidelines issued by the CIMCE.

Will holders of mineral rights be required to register their projects?

Yes, whenever the project involves critical or strategic minerals. The law has established the National Critical and Strategic Mineral Project Registry (CNPMCE) to consolidate information on projects involving these minerals in Brazil, in which such projects must be registered. Projects with a final exploration report identifying the presence of critical or strategic minerals in the mineral deposit, as well as projects involving these minerals located in strategic areas designated by executive order, must be included in the CNPMCE. The CNPMCE will be publicly accessible and integrated into Brazil’s National Mineral Information System (Sigmine).
Furthermore, the PNMCE’s incentive instruments may be used only for projects that are both registered with the CNPMCE and separately approved by the CIMCE.

Will mining companies be subject to new charges?

Yes, in the case of companies engaged in the exploration, mining, processing, and mineral transformation of critical or strategic minerals in Brazil. For a six-year period, these companies must allocate annually at least 0.3% of their gross operating revenue (net of applicable taxes) to RD&I projects, as well as at least 0.2% to contributions to the Mineral Activity Guarantee Fund (FGAM). Once the six-year period elapses, the percentage allocated to RD&I increases to at least 0.5% per year. Failure to comply with the RD&I obligation subjects the company to a fine of 150% of the amount that was not allocated. There is also a signing bonus – a fixed, one-time amount payable to the federal government (also destined for the FGAM) when a mineral right for critical or strategic minerals is granted – but as it tied to the grant, it is not a recurring charge on the company’s day-to-day operations.

What incentives does the National Policy on Critical and Strategic Minerals (PNMCE) offer?

The law creates a tax credit for the Social Contribution Tax on Net Profits (CSLL) – under the Federal Critical and Strategic Minerals Processing and Transformation Program (PFMCE) – of up to 20% of mineral processing or transformation expenditures, subject to an overall limit (i.e., not a per-company limit) of BRL 1 billion per year between 2030 and 2034. Meeting the legal requirements does not guarantee eligibility: the benefit is awarded through a competitive selection process among projects within this annual budget limit and is contingent upon prior approval by the CIMCE, which administers the program.

The law also expands the circumstances in which incentive debentures may be issued (Law No. 12,431/2011 and Law No. 14,801/2024) to cover priority mineral processing or transformation projects, as well as prospecting, exploration, mining, or mine development activities linked to those projects. Meanwhile, the Special Infrastructure Development Incentive Regime (Reidi) now covers the mining, beneficiation, and processing of critical and strategic minerals. The Brazilian National Development Bank (BNDES) is authorized to allocate funds from the National Climate Change Fund (FNMC) to provide repayable financing for these activities.

Law No. 15,506/2026 also creates the Mineral Activity Guarantee Fund (FGAM), a private fund in which the Brazilian government may participate as a shareholder up to a limit of BRL 2 billion. The FGAM is intended to provide credit guarantees and other risk-mitigation instruments for priority projects involving critical and strategic minerals. The FGAM may provide price, liquidity, or contractual performance-related guarantees and may operate through co-investments with public or private financial institutions, sovereign wealth funds, multilateral banks, or development agencies.

Finally, although it is not a tax incentive, the Low-Carbon Mineral Certificate (CMBC) may add commercial value to domestic low-carbon production.

What are the conditions for receiving the incentives and financing mechanisms?

As a general rule, the PNMCE’s incentives and financing mechanisms are available only to those who process or transform minerals in Brazil – not to those who merely mine or export the ore. The CSLL tax credit is granted to companies that incur expenses related to mineral processing or transformation in Brazil, and the eligible products are those that have been processed: concentrates, battery-grade materials, materials for permanent magnets, phosphate, potash, or nitrogen fertilizers, and energy storage systems. In the case of incentive debentures, mineral processing and transformation are independent criteria, but the exploration, mining, or the development of a mine only qualifies when linked to a mineral processing or transformation project within Brazil itself. Repayable financing from the BNDES using FNMC funds is similarly limited to promoting mineral processing and transformation and does not cover exploration and mining in isolation.

Reidi is an exception: the expanded regime covers mining, mineral processing, and mineral transformation side by side, without requiring mining to be linked to a mineral processing or transformation project. The FGAM, by contrast, has the broader purpose of supporting projects and activities generally related to the production of these minerals, without the same requirement that mineral processing or transformation take place in Brazil.

What is the Mineral Activity Guarantee Fund, and what is its purpose?

The Mineral Activity Guarantee Fund (FGAM) is a private fund that the Federal Government is authorized to establish and in which it may participate as a shareholder, up to a limit of BRL 2 billion. Its purpose is to provide guarantees for projects and activities related to the production of critical and strategic minerals considered priorities under the PNMCE. To access FGAM guarantees, a project must also be designated as a priority project under the PNMCE, and the contributing company must meet the minimum contribution that the CIMCE (the PNMCE’s governing body) may establish as a condition for accessing the fund’s resources.

The fund may operate through credit guarantees and risk-mitigation instruments, including price, liquidity, or contractual-performance guarantees, and through co-investments with public or private financial institutions, sovereign wealth funds, multilateral banks, or development agencies. It has assets of its own, separate from those of its shareholders and the managing institution, and may be managed by a federal financial institution. Companies engaged in the exploration, mining, processing, and mineral transformation of critical or strategic minerals in the country are required to contribute to the fund, as explained in the answer to the question above regarding new charges.

How do mineral royalty and streaming agreements work under the new law?

The law authorizes the registration of mineral royalty and streaming agreements with the ANM. Both are forms of advance monetization of mineral production: an investor provides funds to the mining company in exchange for the right to receive a future share of the project’s production or revenue, or the right to purchase a share of mineral production at a discounted price. A key change under the new law is that these contracts become enforceable against third parties once registered in the ANM’s system. Each contract must specify the initial investment amount and the terms for compensation in the form of production or revenue; be registered electronically in the ANM system with its commercial terms kept confidential; and may not involve the transfer of ownership of mineral rights. Registered contracts may also be used as collateral in credit or financing transactions with institutions authorized to operate in the financial markets.

Does the National Policy on Critical and Strategic Minerals (PNMCE) address environmental and social issues?

Yes, but only in broad terms, with details expected to follow when implementing regulations are issued. The policy’s principles include prioritizing environmental licensing for projects covered by the PNMCE and social and environmental responsibility, and its objectives include supporting the environmental licensing process.

To be prioritized in the CNPMCE (the national project registry), projects must, among other requirements, maintain ongoing, transparent dialogue with affected communities (without prejudice to free, prior, and informed consultation), adopt best practices for dam safety and the disposal of tailings and waste rock, and implement measures to prevent, mitigate, and compensate for impacts. The Low-Carbon Mineral Certificate recognizes production with lower greenhouse gas emissions, and the supply-chain traceability system must ensure social and environmental compliance, assess the environmental impact associated with mining and production, and include data on circularity and recyclability.

What is the Low-Carbon Mineral Certificate (CMBC)?

The CMBC is the mechanism through which the new law seeks to turn the carbon intensity of Brazilian mineral production into a measurable and verifiable commercial attribute. Companies engaged in the exploration, mining, processing, or transformation of critical and strategic minerals may obtain it. The certificate is intended to distinguish minerals produced with a lower carbon footprint in the market through a technically credible seal, based on a product life-cycle analysis and subject to external accreditation and auditing. The CIMCE serves as the competent authority for this certification system.

How does the traceability system for critical and strategic minerals work? 

The law establishes a supply-chain traceability system for critical and strategic minerals to ensure lawful origin; social, environmental, tax, and regulatory compliance; and the integrity of information throughout the entire chain. At a minimum, the system must cover the composition and origin of the minerals; the environmental impact associated with mining, production, and marketing; requirements for durability, reparability, reuse, and recyclability; data on circularity and reverse logistics; and information on environmental permits, mining concessions, and the legally responsible party.

All transactions and agents in the production chain must be recorded, and the information must be auditable. The system may be operated by accredited public or private entities under the ANM’s supervision, and distributed ledger or equivalent technologies may be used to ensure data integrity.

Next steps

Key aspects of the PNMCE’s practical implementation still depend on decisions by the CIMCE’s Plenary and Executive Committee or on specific regulations. To name just a few issues, the outstanding items include:

• The list of critical and strategic minerals based on a proposal from the Ministry of Mines and Energy;
• The CIMCE’s internal rules of procedure (to be approved by the Plenary);
• The technical criteria and procedures for approving transactions subject to the screening mechanism;
• The FGAM bylaws and the minimum contribution required to access its resources;
• PFMCE eligibility requirements and the selection procedure for the CSLL tax credit;
• The CMBC certification system, including the custody model and the scope of certification; and
• The technical standards and deadlines for adapting the traceability system.

For reference, the CIMCE Plenary ordinarily meets every six months, and the CIMCE Executive Committee meets monthly.

Companies and investors with projects or operations involving critical or strategic minerals should monitor future regulations and assess the impacts of the law and the regulatory decree on their structures now.

For more information on these topics, please contact Mattos Filho’s Infrastructure & Energy and Mining practice areas.