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| Brazil CIMCE |
Brazil has officially launched its new critical and strategic minerals strategy. The National Council for Critical and Strategic Minerals (CIMCE) held its inaugural meeting on November 5, 2026. CIMCE approved a three-tier priority classification covering 27 strategic commodities. This regulatory move follows the enactment of the National Policy on Critical and Strategic Minerals (PNMCE). President Luiz Inácio Lula da Silva signed the landmark policy into law following his re-election. The official framework integrates supply risk, economic vulnerability, geopolitical exposure, and recycling potential into national mining policy.
Strategic Mineral Classification and Market Dynamics
The framework establishes Class I high-priority minerals to accelerate downstream transformation. Rare earth elements (REEs), graphite, lithium, nickel, cobalt, copper, manganese, silicon, and uranium anchor this top category. Class II medium-priority minerals include tungsten, niobium, chromium, tin, vanadium, titanium, phosphate, potassium, sulfur, tantalum, and zinc. Class III low-priority commodities encompass iron ore, aluminum, gold, molybdenum, magnesium, thorium, and platinum group metals (PGMs). Consequently, the Brazilian government aims to expand mining beyond its current 2-4% share of national GDP. Commercial interest has surged rapidly across key mineral basins. USA Rare Earth recently acquired the Serra Verde mine, securing major heavy rare earth supply. Meanwhile, Lynas agreed to acquire Meteoric's Caldeira ionic clay project in Minas Gerais. Solvay and Viridis signed a binding long-term offtake contract for Project Colossus feedstock to supply refining operations in France.
Capital Allocation, Processing Incentives, and Recycling Scope
Brazil is deploying targeted financial mechanisms to back its mineral sovereignty strategy. The federal government established a Mineral Activity Guarantee Fund (FGAM) capitalized at up to US$370 million. Additionally, the Beneficiation and Transformation Federal Program (PFMCE) allocates up to US$180 million annually between 2030 and 2034. These incentives directly target midstream refining, chemical transformation, and secondary scrap recycling. Mining companies must invest in local research and development while integrating local supply chains. Within 15 days, the Ministry of Development, Industry, Commerce and Services will submit concrete proposal plans for priority value chains. Therefore, global metal recyclers and processors face new opportunities for joint industrial investment in South America.
ScrapInsight Commentary
Brazil's structured framework marks a decisive transition from exporting raw mineral concentrates toward building high-value domestic refining and secondary recycling infrastructure. Dedicated PFMCE funding for urban mining and recycling will accelerate local scrap processing, while tighter foreign M&A oversight will incentivize Western processors to establish joint ventures in South America. In the long term, this policy will support firm floor prices for Class I battery and magnet metals while reshaping global scrap trade flows toward localized value addition.
