Brazil institutes national policy to promote the exploration of critical minerals for technology and electric vehicles

Brazil has implemented a national policy dedicated to boosting the research, extraction, processing, and transformation of minerals considered critical and strategic. This initiative was formalized this Wednesday, the 16th, and includes up to R$ 7 billion in incentives for businesses linked to this sector.

The new legislation aims to create structures that allow the country to expand its capacity to identify its reserves and process these materials domestically, in addition to establishing tools for financing, innovation, and research.

Increase in Resources for the Brazilian Geological Survey

An immediate impact of this measure will be the increase in funds allocated to the Brazilian Geological Survey (SGB). As stated by the Minister of Mines and Energy, Alexandre Silveira, the budget dedicated to soil research will rise from R$ 8 million to R$ 300 million. The objective is to intensify the survey of mineral wealth present in Brazilian territory.

This action is relevant because a considerable portion of the national territory still lacks mapping. Data from Agência Brasil indicates that only about 25% of Brazilian territory has been mapped for this type of survey. The country holds approximately 21 million tons of rare earth reserves, representing the second largest amount mapped globally, behind China, which has about 44 million tons.

Creation of the Mineral Activity Guarantee Fund (FGAM)

The policy establishes the creation of the Mineral Activity Guarantee Fund (FGAM). The Federal Government will initially contribute R$ 2 billion, with the fund's total assets potentially reaching R$ 5 billion. These resources will be used to provide guarantees for priority projects focused on the production of strategic and critical minerals.

Additionally, there is a provision for a federal program for the processing and transformation of these minerals, offering R$ 5 billion in tax credits between 2030 and 2034. This benefit can cover up to 20% of the costs of selected projects.

Thus, the total R$ 7 billion associated with the new policy is composed of the R$ 5 billion in tax credits and up to R$ 2 billion in contribution from the Federal Government to the guarantee fund, although each amount has distinct purposes within the policy.

The legislation also mandates that companies involved in the research, mining, processing, and transformation of critical and strategic minerals must allocate part of their revenue to both the fund and to research, development, and innovation activities.

In the first six years, 0.2% of gross operating revenue must be allocated to the guarantee fund, and 0.3% to R&D projects. After this initial period, the percentage allocated to research projects may rise to 0.5%.

Mineral research and prospecting have also been included among the eligible projects for issuing incentive debentures, which expands opportunities for private capital raising for the sector's activities.

Governance Structure and Support Mechanisms

The new law also institutes the National Council for the Industrialization of Critical and Strategic Minerals, an body responsible for coordinating, planning, and monitoring the national policy. Among its responsibilities is suggesting governmental policies and actions to develop the productive chains related to critical and strategic minerals. The first meeting of this collegiate body should take place approximately ten days after its constitution, according to the Minister of the Civil House, Miriam Belchior.

Another foreseen instrument is the creation of a national project registry. According to the text approved by Congress, the benefits of the policy can only be accessed by projects duly registered and authorized by the council. This system should consolidate data from federal, state, municipal, and district spheres involved in mineral activity.

The legislation also introduces the Low Carbon Mineral Certificate, which is optional, and requires that areas with potential for critical and strategic minerals receive priority in auctions conducted by the National Mining Agency (ANM).

In addition to aiding in the discovery of new reserves, geological surveying is crucial for determining which resources are available and where they can be exploited. Silveira emphasized that increased funding for the SGB will enable deeper knowledge of the Brazilian subsurface, given that the unmapped area suggests the possibility of discovering unknown resources.

The policy also aims for Brazil to evolve beyond mere extraction. The legislation offers incentives for the processing and transformation of minerals to occur within the national territory, stages that allow for the incorporation of technology and the addition of greater value to the productive chain.

With this new policy, the government acquires specific means to finance mineral research, support production and processing projects, and stimulate technology investments related to minerals vital for sectors such as electronics, automotive, energy, and defense.

Similar stories

olhardigital.com.brSeptember 16, 21:41

The History of the Automatic Transmission: The Contribution of Brazilian Engineers José Brazo Araripe and Fernando Lemos

As part of the series 'Brazilian Technologies That Changed the World,' this article discusses the history of the automatic transmission, an invention made possible by two Brazilian engineers: José Brazo Araripe and Fernando Lemos.

Similar to the typewriter, early devices existed, but it was the Brazilians who developed the first truly working model. In 1902, brothers Thomas J. and Thomas L. Stertewant created a rudimentary automatic gearbox; the prototype, patented in 1904, was mechanical and only functioned at high speeds.

Later, in 1921, Canadian Munro Alfred Horner, a steam specialist, developed a pneumatic mechanism using compressed air. Although this device lacked sufficient power for commercial use, Horner patented it in 1923.

Two years later, German Hermann Rißeler patented his version, making a significant contribution by combining a hydraulic torque converter with a planetary gear set. However, his design was also not released into commercial production.

The main difference between these three projects lay in the force used for gear shifting. In the 1930s, prototypes existed, but none of them functioned properly for market release. Among them, Rißeler's project was considered the most promising, serving as the basis for the device created by the Brazilian engineers Araripe and Lemos.

In 1932, this pair of engineers achieved a decisive breakthrough by learning to precisely control oil pressure. While Rißeler used hydraulic fluid to transmit engine power, the Brazilians developed a system where the pressurized oil itself controlled and executed gear shifting without jerking.

Although the system might have seemed similar to artificial intelligence, this was impossible given that the development took place in the 1930s. This system was based purely on physics and fluid mechanics.

Imagine a labyrinth of channels with small baffles (valves) pressed by springs. The 'brain' of this system was the speed of the vehicle. Thus, the pair of engineers created the first functional prototype of an automatic transmission ready for the market. It is important to note that, being Brazilians, they developed this system in the United States, as they moved there in the 1920s to work in ship repair workshops, dedicating over ten years to this secret project.

In 1932, they patented their invention and presented it to General Motors in Detroit. GM showed interest and made two offers: $10,000 lump sum or $1 per car sold using the technology. The pair chose the first offer. According to the official U.S. Bureau of Labor Statistics inflation index, this amount is equivalent to approximately $244,500 today (about 1.25 million Brazilian reais at the current exchange rate), which is a substantial sum. However, if they had chosen the second option, they would have earned much more.

After perfecting the Brazilians' project, GM released the Hydra-Matic transmission in late 1939. This technology debuted in Oldsmobile models in 1940.

Today, the technology invented by this pair of engineers is called the Standard Automatic Transmission (also known as 'Torque Converter'). Since the 1930s, this technology has undergone significant changes, but its hydraulic foundation remains the same. Over time, the system has gained computer control and increased from four to six, eight, nine, or even ten gears.

In conclusion, it is worth mentioning that mechanical engineer José Brazo Araripe was the cousin of the writer Paulo Coelho. Part of the story of the automatic transmission invention is contained in the book 'Mag,' the author's biography written by journalist Fernando Moraes.