No new tax relief as Brazil prioritises local processing of minerals
Brazil holds vast reserves of critical minerals that are key for high-tech industries
Black News 
Brazil’s Finance Minister Dario Durigan says the planned critical minerals rules do not involve fresh taxation breaks adding that their aim is to secure national sovereignty and add value through domestic processing.
Durigan, who took charge of the ministry last month says critical minerals would be a priority in a May or June auction for the Eco- Invest programme, which offers blended finance to lure foreign investment. Although a small producer, Brazil holds vast reserves of critical minerals that are key for high-tech industries.
The U.S. is working to integrate miners in Brazil into its supply chains to balance China’s global dominance of the sector.
Durigan says large fiscal incentives are unnecessary for developing critical minerals in Brazil, given strong global demand, noting that major economies are already seeking partnerships in Latin America’s largest economy.
“There will still be government engagement but largely without tax incentives, which are not needed for the sector to advance. Investment is already being attracted and does not require tax breaks from the Brazilian government.”
Earlier on Friday, Development Minister Marcio Rosa reaffirmed the prevailing view within the government against the creation of a state-owned company for critical minerals, while backing swift regulation of the sector in talks with Congress.
He says both the Trump administration and Asian stake holders were interested in paving the way for Venezuela to regain access to financing in order to rebuild its infrastructure.
“Brazil believes that Venezuela is a relevant regional player and should turn the page to regain economic strength. As new investment opportunities emerge in Venezuela, Brazilian companies will also take part.”
