Brasilia - After the government requested more time to discuss potential changes to the bill regulating the exploration of critical minerals in Brazil, the bill's rapporteur, Deputy Arnaldo Jardim (Cidadania-SP), expects to vote on the bill in the Chamber's plenary session on Tuesday, May 5th.

Jardim has his report ready. However, he is waiting for the Executive branch to provide suggestions, so he can present the final version of the new report next Monday, May 4th, "without fail, with or without the government."

“I want to vote on Tuesday [May 5th] in the plenary session. And the [Chamber] president Hugo Motta is very enthusiastic,” Jardim told NeoFeed .

The move by Congress to finally vote on the bill comes at a time when the PT (Workers' Party) caucus in the Chamber of Deputies has also begun to criticize the bill and advocate for the creation of "Terrabras," a regulatory agency to oversee and authorize projects for the production and exploration of these minerals in the country.

NeoFeed has learned that the government tends to offer only specific suggestions to Jardim's report and support the proposal. However, the Executive branch is expected to veto the idea of a state agency to regulate these minerals, despite pressure from the PT (Workers' Party).

A group of ministries, comprised of Finance, Industry , Foreign Trade and Services, the Civil House, Planning, and Mines and Energy , met yesterday to seek consensus on the points the government will propose to the rapporteur by tomorrow at the latest.

The project, submitted in 2024 by a group of deputies from regions with strong mining activity such as Minas Gerais and Pará, establishes the National Policy for Critical Minerals. It regulates this exploration in Brazil, creating incentives and promoting the production, processing, and transformation of these minerals within the national territory.

Jardim's new report – his second – is practically identical to last year's, according to him: it proposes specific environmental licensing, tax benefits, and the creation of a guarantee fund to finance mining projects and investments. The report also includes income tax exemption on the use of trademarks, patents, and technological licenses.

One of the authors of the project, Congressman Zé Silva (Solidariedade-MG), told NeoFeed that he recently met with the Minister of Mines and Energy, Alexandre Silveira, and that the government has been supporting the project.

There was even a possibility of the Executive Branch submitting its own bill to the Legislature, but it was agreed that the rapporteur could only accept points from the government. According to him, in a meeting this Tuesday, April 28th, the Parliamentary Agricultural Front (FPA) decided that it will make a concentrated effort to try to get the bill voted on in plenary by next Wednesday, May 6th. Better known as the ruralist bloc in Congress, the group has 292 affiliated deputies, more than half of the entire Chamber.

“I see political space for the Chamber to vote within two weeks, even if the president's party wants to create this state-owned company. I defend sovereignty, but with care to ensure it doesn't become a state monopoly,” said Zé Silva. “I haven't yet met anyone in Congress who has expressed opposition to the project.”

The project has also been receiving support from the mining sector, according to the CEO of the Brazilian Mining Institute (Ibram), Pablo Cesário. He says that if Congress approves the proposal, Brazil could reduce vulnerabilities in the supply of essential minerals, such as potassium and phosphate (inputs for fertilizers) and rare earth elements (used in technological components).

The organization also supports the creation of a private fund, as proposed by rapporteur Jardim, to provide guarantees for credit operations to finance these new mining projects, which require high investment and risk.

Terrabras underground

The PT leader in the Chamber of Deputies, Congressman Pedro Uczai (SC), defends a national project for its mineral wealth "with public control" and economic sovereignty with mechanisms to protect against the eventual use of Brazilian rare earth supplies by the foreign arms industry.

“This treasure cannot serve foreign interests. Our soil belongs to our Brazilian people. That is why our Workers' Party caucus defends a public company to manage these minerals,” Uczai said in a recent video.

For now, the members of the Workers' Party (PT) caucus are pushing to reinforce the inclusion of the creation of Terrabras in the bill. However, the rapporteur and the author of the bill have been arguing that strengthening the National Mining Agency (ANM) could eliminate the need for another state agency, given the current fiscal constraints.

“I know that the Ministry of Mines and Energy itself has a synergistic vision with mine and Arnaldo's: instead of creating a new agency, we already have the ANM (National Mining Agency) and it's just a matter of hiring more qualified professionals and strengthening the agency's technology. Officially, the government is not in favor of this agency,” added Zé Silva.