Proposal allows tax compensation, expands special regimes and links benefits to added value in Brazil
The new text of the project that creates the National Critical Minerals Policy, presented by the deputy rapporteur of the project, (Cidadania-SP), this Monday (May 4, 2026), stipulates the granting of tax credits of up to 20% on investments in mineral processing and transformation for companies in the sector. The project will be voted on on Tuesday or Wednesday in the Chamber plenary. Here is it (PDF – 318 kB).
The proposal seeks to reduce the financing risk and stimulate the processing of these minerals in Brazil, with resources expected between 2030 and 2034. The idea, according to the project’s rapporteur, is to expand the addition of value in the national territory. Jardim argues that Brazil cannot just be an exporter of commodities in the critical minerals sector.
“The approval [do Projeto de Lei] promotes an increase in industrial production, an increase in per capita income and an increase in the share of mining in the national economy”, stated the rapporteur.
The text structures a set of instruments to make the policy viable. Among them, the possibility of compensation with taxes or cash reimbursement and the expansion of special regimes, such as Reidi (Special Incentive Regime for Infrastructure Development).
Processing and Transformation
The report also stipulates the creation of the Federal Beneficiation and Transformation Program, which grants tax credit to investments in projects enabled by a linked to the federal government.
The credit works as a tax rebate on investments made. Companies that invest resources in more advanced stages of the chain – such as processing, transformation or urban mining – will be able to recover up to 20% of this value in the form of tax compensation or direct reimbursement.
The benefit will be limited to R$1 billion per year between 2030 and 2034 and will depend on prior authorization of the projects by the government, which will define the values according to fiscal targets and policy priorities.
Incentive package
The text also includes the following instruments:
- Incentivized debentures that allow companies to raise funds in the market with tax benefits for investors. Reduce the cost of financing mining and processing projects.
- reduction of federal taxes on inputs and services used in works, through Reidi, which reduces the cost of implementing industrial plants, mines and logistics.
- financing from public banks and development agencies. Expands capital supply for higher risk projects.
- creation and certification of “low carbon” for production with lower fuel emissions to facilitate access to international markets and green credit.
Possibility of taxation on the export of raw ore
The text also opens space for the adoption of measures on exports, without imposing a tax automatically. The proposal allows the Executive Branch to establish conditions and technical requirements linked to the export of minerals, which may include, in specific cases, the application of taxation to discourage the sale of raw ore.
The decision will depend on subsequent regulation and may vary depending on the type of mineral and the stage of the production chain.
