Brazil's Mining Sector Rejects New State-Owned Companies, Advocates for Strengthening Existing Agencies

Mining Sector Voices Opposition to State Intervention

Representatives of Brazil's mining sector have recently voiced strong opposition to political initiatives aimed at establishing new state-owned companies within the industry. During a meeting of the Chamber of Deputies' Mines and Energy Committee, key players, including the Brazilian Mining Institute (IBRAM), the National Mining Agency (ANM), and the Geological Survey of Brazil (SGB/CPRM), convened to discuss legislative priorities for 2026.

The consensus among participants was a clear rejection of proposals that would lead to the creation of additional state-owned entities or new bodies that could potentially undermine the functions of existing agencies. Instead, the sector advocates for legislative initiatives that prioritize the institutional strengthening of the ANM and SGB, which are considered 'strategic for the sustainable development of mining in the country'.

Concerns Over Bureaucracy and Efficiency

A primary concern driving this rejection is the potential for increased bureaucracy. Industry representatives argue that Brazil needs to focus on accelerating mining processes rather than creating more bureaucratic structures. A significant bottleneck identified is the slow environmental licensing process, which involves numerous entities at both national and state levels.

Specifically, the sector has expressed apprehension regarding a bill pending in Congress for several years that proposes the creation of a National Mineral System Operator (ONSM). This proposed entity would aim to monitor mineral production in real-time, drawing parallels to the existing National Electric System Operator (ONS) in the energy sector. However, mining participants are opposed to introducing such a structure, fearing it would add unnecessary layers of bureaucracy.

Focus on Existing Agencies and Policy Development

The call to strengthen existing agencies comes amidst a period of heightened policy discussions within Brazil's mining sector, driven by the country's significant potential in critical minerals. The Brazilian government recently installed the National Mining Policy Council (CNPM) in October 2025, after a three-year delay. Chaired by the Minister of Mines and Energy, the CNPM includes 18 federal government ministers and the CEO of the Brazilian Geological Service, with plans to involve state and municipal representatives, civil society, and academic institutions.

One of the CNPM's initial actions is to develop a new National Mining Plan, replacing the previous 'National Mining Plan 2030' established in 2011. This new plan is expected to undergo public consultation and will serve as a framework for long-term investment, environmental regulation, and technological modernization. The mining sector's stance underscores a desire for efficient, well-regulated growth through existing frameworks rather than the introduction of new state-controlled entities.