Brazil: two proposals on rare earths and a public company

In Brazil, parliamentary discussions have begun on the possible establishment of a state-owned company responsible for the management and oversight of rare earth elements and strategic minerals, which are considered essential resources for the energy transition and technological development. Within the space of a single day, two bills were introduced proposing the creation of a new public entity intended to play a central role across the entire production and supply chain.

The first bill, introduced by the Workers’ Party (PT), proposes the establishment of the Empresa Brasileira de Mineração de Terras Raras. The proposal also introduces a production-sharing concession model, based on the framework already used for oil field exploitation. It further stipulates that at least 50% of extraction rights would be allocated to the new state-owned company.

The second bill, presented by Deputy Rodrigo Rollemberg (PSB), provides for the establishment of a state-owned company under the supervision of the Ministry of Energy. The entity would have a broader role across the value chain, covering activities ranging from the exploration phase to the commercialisation of resources. Both proposals are aligned with the government’s strategy aimed at strengthening national control over strategic raw materials used in key sectors such as energy, digital technologies, and defence.

The objective is to prevent the country from remaining confined to extraction activities alone, without also benefiting from industrial processing stages and added value creation. According to Eixos magazine, however, the two proposals do not reflect a unified position within the government. On one side, part of the executive supports a stronger public role, particularly through a more industrial policy approach; on the other, the economic wing expresses caution, especially regarding costs and the potential implications of establishing a new state-owned company in the sector.