Marcio Pereira, a partner at BMA Advogados, noted that Brazil has historically been more “reactive” in its regulatory approach but said he has “never seen” the sector so mobilized to push for improvements in the legal framework needed to advance mining in the country.

He emphasized that global dynamics—including pressure initially driven by the United States to secure strategic mineral supplies—have reinforced the industry’s perception that Brazil must modernize its regulations to take advantage of rising demand for critical minerals such as rare earths, nickel, niobium, and copper.

Since the pandemic, Brazil has enacted Law 14066/20 and decrees 10965/22 and 11197/22, which set out sanctions and procedures for mineral exploration. ANM is responsible for implementing the fines. According to Mr. Pereira, the expectation is that the agency will finalize the rules this month, a step that could help unlock investment and speed up development.

“Now [after regulation] there will be meaningful fines for those who ‘sit’ on concessions,” Mr. Pereira said.

João Raso, a BMA lawyer specializing in mining, pointed out that several factors currently hinder the development of Brazil’s mineral reserves. Data from the Brazilian Mining Institute (IBRAM) show that, among critical minerals, Brazil holds the world’s third-largest nickel reserves but ranks only eighth in production; the second-largest graphite reserves but is fourth in output; the fourth-largest titanium reserves but only 16th in production; and the second-largest rare earth reserves but 11th in output.