President Lula announces exploration efforts and insists on government oversight in resource marketing.
Only about 30 percent of Brazil’s natural resources, including critical minerals, have been adequately surveyed, according to President Luiz Inácio Lula da Silva. To address this, he announced the creation of a new commission this week. Speaking to the press, Lula also cited U.S. interest in Brazil’s so-called critical minerals, as reported by news network Globo. However, he emphasized that the sale of these resources or the land where they are found must not occur without government approval.
Due to its geological conditions, Brazil is considered particularly well positioned to challenge China’s market dominance in rare earth elements. After China, Brazil holds the world’s second-largest reserves of this essential resource group. The country also possesses ion-adsorption clay deposits, which are known for their high concentrations of heavy rare earth elements like dysprosium and terbium, both currently in high demand. This interest has intensified since China introduced export controls on these and other rare earths in early April.
Currently, Brazil’s production of critical minerals remains modest. Efforts are underway to build the necessary infrastructure, from extraction to component manufacturing, with both domestic and international partners. Western companies are involved, but Chinese investors also play a significant role. For instance, long-term supply contracts with China are already in place for the Pela Ema mine, operated by Serra Verde in the central Brazilian state of Goiás. This site is currently Brazil’s only commercially active rare earth mine.
Photo credits: EvgenyMiroshnichenko, omersukrugoksu via Canva, iStock/Michael Ien Cohen
