federal executive classifies twenty-seven mineral substances as essential for Brazil
government council defines geopolitical security parameters to list fundamental mineral inputs.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 2 MIN
The government's industrial policy gained new contours this week with advances on the extractive sector. According to Money Times, the committee responsible for promoting essential mineral inputs held a meeting last Thursday (5).
According to Estadão, the head of the Civil House, Miriam Belchior, announced the approval of an initial list with 27 critical and strategic minerals. The selection was divided into three distinct groups.
As Money Times found, the classification criteria involved geopolitical risk, concentration of supply, substitutability, Brazil's position in the production chain and external dependence. InfoMoney reported that president Luiz Inácio Lula da Silva and portfolio holder Alexandre Silveira signed a decree on the topic.
The normative act was released through a supplementary publication in the official government vehicle on Wednesday (4), according to InfoMoney. The items were separated into three priority levels by Estadão.
Class I, of high priority, includes Rare Earths, Graphite, Lithium, Nickel, Cobalt, Copper, Manganese, Silicon and Uranium. Class II, classified as intermediate level, includes Tungsten, Chromium, Vanadium, Tantalum, Titanium, Phosphate, Potassium and Sulphur, while Class III was given low priority, according to Estadão.
The same newspaper highlighted that Classes I and II bring the possibility of screening share control and sales contracts. The measure directly affects the regulatory environment of companies in the sector.
What changes for the investor
For those who operate in the financial market and monitor companies linked to mining, the creation of new instances of screening shareholding control and commercial contracts increases the perception of regulatory risk. Investors should monitor how state intervention and scrutiny of foreign and corporate capital will affect the governance and dynamics of mergers and acquisitions in the critical minerals segment.
Automatically translated from Portuguese.
