Copper and nickel extracted across Brazil’s Northeast secured top-tier placement among 27 critical minerals approved by federal officials, unlocking access to a R$ 7 billion incentive framework designed to reshape domestic industrial policy.
Movimento Econômico reported that the newly established National Council for the Industrialization of Critical and Strategic Minerals approved the 27-item list, dividing resources into three strict priority classes to determine federal backing and credit access.
President Luiz Inácio Lula da Silva participated on Thursday, November 5, in the first meeting of the council. Miriam Belchior, the Chief of Staff, stated at the meeting that investments in critical mineral exploration in Brazil will mean employment, income, technology, innovation, and development opportunities for the regions where they are found.
Prioritizing Northeast Mining Assets
The high-priority tier encompasses nine resources crucial for the global energy transition, including rare earths, graphite, lithium, nickel, cobalt, copper, manganese, silicon, and uranium. Copper operations in Bahia—specifically Ero Copper’s (TSE: ERO) Caraíba, Vermelhos, and Surubim mines—alongside the Serrote mine in Alagoas, sit squarely in this top category.
Official figures from the National Mining Agency (ANM) show Brazil produced 1.65 million tons of copper concentrate valued at R$ 30.8 billion in 2025. Mining operations in Jaguarari account for 2,052 jobs linked to critical minerals, according to an ANM portal launched on October 14 with 2025 data.
Nickel also anchors a vital production hub in Bahia. Itagibá accounts for 469 jobs tied to the metal, securing the nation’s second-highest employment figure while generating R$ 26.8 million in mineral royalties (CFEM) in 2025. Meanwhile, tungsten deposits in Rio Grande do Norte landed in the medium-priority group, even as local production reached 367.6 tons valued at R$ 48.3 million.
| Mineral Priority Class | Key Regions & Operations | 2025 Production & Value |
|---|---|---|
| High Priority (Copper) | Caraíba, Vermelhos, Surubim (Bahia); Serrote (Alagoas) | 1.65 million tons (R$ 30.8 billion) |
| High Priority (Nickel) | Itagibá (Bahia) | 469 jobs, R$ 26.8M in CFEM royalties |
| Medium Priority (Tungsten) | Currais Novos, Seridó (Rio Grande do Norte) | 367.6 tons (R$ 48.3 million) |
Unlocking Multi-Billion-Dollar Guarantees
Prioritization is what unlocks the FGAM, created by the government to share risks, use bank credit, and overcome the challenge of financing in the early phases of research and mining. The fund can receive up to R$ 2 billion from the federal government alongside private and municipal capital to mitigate financial risk during early-stage exploration and mine development.
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According to UOL Economia, the Brazilian Mining Association (Ibram) argued against export restrictions on critical minerals, advocating instead for structural incentives to attract processing facilities. Julio Nery, Ibram's Director of Mining Affairs, told Reuters that building domestic industrial chains requires strong financial support rather than mandatory trade barriers.
This followed indications by government members during the first meeting of the council on Thursday that Brazil could at some point ban nickel exports, similar to Indonesia, as new policies seek to add value to domestic mining.
Infrastructure and Tax Issues Hinder Brazil's Technological Shift
Valor Econômico reported that analysts from the Dom Cabral Foundation remain cautious regarding Brazil’s capacity to capitalize on the technological shift. Carlos Primo Braga and Paulo Vicente Alves highlighted chronic infrastructure bottlenecks, high energy costs, and a complex tax environment that complicates large-scale industrial execution.
They pointed out that the country runs into chronic logistics infrastructure bottlenecks, structural deficiencies in training specialized labor, expensive energy, and a dramatic
tax complexity that places the country in the worst positions of the World Bank’s Doing Business ranking, where Brazil sat at position 124 among 190 economies in the latest edition, and at position 184 specifically for taxation.
Alves noted that if one looks at the growth experience of Brazil and South Korea from 1950 to 1980, industry expansion in both was very similar.
President Luiz Inácio Lula da Silva addressed the council by emphasizing the necessity of international partnerships and fiscal responsibility. Nobody is going to put money here for the pretty hair of Lula or Alckmin,
Lula stated, as reported by Partido dos Trabalhadores. People will put it if they realize that their investments are going to generate financial return.
MDIC Presents Priority Chains While Mineral Auctions Await Funding
The Ministry of Development, Industry, Commerce and Services (MDIC) has 15 days to present the priority chains proposal for the National Plan for Critical and Strategic Minerals, which will be voted on by the plenary.
Meanwhile, unlocking new mineral research areas depends on funding; according to Nery, there are between 70,000 and 100,000 areas ready to be auctioned off, but the process relies on resources for the National Mining Agency (ANM) to execute new bidding rounds through an agreement with B3.
