Investing in rare earths in Brazil
A practical legal guide to acquiring mineral rights, structuring an investment and navigating the regulatory framework for rare earth elements in Brazil.
Mineral rights, foreign investment, environmental and social licensing, CFEM, critical minerals policy. Updated 2026
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New to mining in Brazil? Our Brazilian Mining Law guide covers the complete regime: the Mining Code, ANM titles, exploration and concession procedures, the CFEM royalty, dam safety and the obligations of foreign companies.
Mining Law GuideBrazil holds among the largest rare earth reserves on earth and, with Serra Verde, the only scaled producer of the four magnet elements outside Asia
Rare earth elements are the seventeen metals that sit at the centre of the energy transition and the defence supply chain: the permanent magnets in electric vehicles, wind turbines and guided systems depend on neodymium, praseodymium, dysprosium and terbium. China processes most of the world’s supply, and the search for alternatives has put Brazil firmly in view. The Serra Verde operation in Goias, the first ionic-adsorption clay mine in the Western Hemisphere, began commercial production in 2024 and is the only mine outside Asia producing all four magnet elements at scale. In April 2026 USA Rare Earth agreed to acquire it for around USD 2.8 billion, subject to Brazilian regulatory approval.
This guide is written for foreign investors, junior miners and downstream manufacturers evaluating Brazilian rare earths. It covers acquiring and holding mineral rights, the corporate structure a foreign investor must use, the radioactivity and nuclear-monopoly issues specific to rare earth deposits, environmental and social licensing, the CFEM royalty and tax treatment, and the federal policy and incentive framework now taking shape. It complements our Brazilian Mining Law guide and Brazil Tax Guide. For advice specific to your project, contact us.
Why rare earth investment is moving to Brazil
The investment case rests on three things that rarely line up together: a vast and partly underexplored resource, a producing template that proves the geology works and a government actively building incentives to attract the capital.
A note on the value chain. Mining the ore is only the first step. The strategic prize, and the focus of Brazilian policy, is separation, refining and magnet manufacturing, the stages China still dominates. Serra Verde historically committed its ore to Chinese processors under long-term offtake agreements. An investor’s returns and access to incentives both depend heavily on where in the chain it positions itself.
What a rare earth investment in Brazil turns on
Rare earths are governed by the general mining regime, but several issues bear on them with particular force. Each must be cleared independently.
Acquiring and holding the right to mine
Rare earths are extracted under the authorisation and concession regime governing over 95% of Brazilian mineral production, set out in the Mining Code (Decree-Law 227/1967) and administered by the National Mining Agency (ANM). The title is the asset, granted, transferred and financed separately from the land.
Acquiring rights second-hand. Many investors enter by acquiring a company that already holds permits or a concession, or by taking an assignment of the title. Assignments must be filed with and recorded by the ANM to bind third parties, and the transferee inherits the transferor’s obligations and liabilities. Thorough title and environmental due diligence is essential.
Keeping the title alive. Concessions carry a positive duty to mine. Prolonged inactivity beyond six consecutive months without ANM authorisation is grounds for revocation. The annual hectare fee (TAH) must also be kept current.
Radioactivity and the nuclear monopoly
This is the issue that separates rare earths from most other minerals in Brazil and the one foreign investors most often underestimate. Rare earth mineralisation is frequently associated with thorium and uranium, and those elements are not ordinary minerals under Brazilian law.
Under Article 177 of the Constitution, the research, mining, enrichment and trade of nuclear ores are a monopoly of the Union. Where a deposit is hosted in monazite or other thorium-bearing or uranium-bearing minerals, the project can fall within the orbit of the National Nuclear Energy Commission (CNEN), triggering nuclear-sector licensing and controls on residues and exports.
This is why the ionic-adsorption clay deposits of central Brazil, of which Serra Verde is the leading example, are so commercially attractive: the rare earths are loosely held on clay surfaces, recoverable by simple leaching, with low radioactivity. The mineralogy of a target deposit is a legal question to be settled in due diligence, not merely a metallurgical one.
What to confirm early. The mineral host and its thorium/uranium content, whether CNEN licensing is engaged, how naturally occurring radioactive material in tailings must be managed, and whether any product is subject to nuclear-trade controls.
How a foreign investor holds a Brazilian rare earth project
The investor can be foreign, but the title holder must be Brazilian. Mineral rights may only be held by a company organised under Brazilian law with head office and management in the country, with no restriction on the nationality of its capital.
Environmental and social licensing
An ANM title is permission to mine in principle. A project cannot break ground without separate environmental licensing, and across much of Brazil’s rare earth geography the social dimension is as decisive as the environmental one.
Mining is licensed in three stages by IBAMA or the state agency: the preliminary licence, the installation licence and the operating licence, with an EIA/RIMA study and public hearings for significant-impact projects. Where indigenous or quilombola communities are affected, FUNAI involvement and free, prior and informed consultation under ILO Convention 169 apply.
Why this matters for rare earths. The critical minerals bill that passed Brazil’s lower house in 2026 was criticised by civil society and indigenous organisations for advancing a new mining cycle without strengthened safeguards. Early, genuine community engagement and rigorous environmental diligence should be treated as core to project value.
How a rare earth project is taxed
A rare earth project carries the ordinary Brazilian corporate tax burden, a sector-specific royalty and area fee, and indirect taxes that bear differently on domestic sales and exports. See our Brazil Tax Guide for detail.
Regional and sector incentives worth structuring for. Projects in the Northeast fall within SUDENE, and those in parts of the North within SUDAM, both offering substantial IRPJ reductions. Infrastructure may qualify under REIDI for PIS/COFINS suspension. Strategic mineral projects can issue incentivised debentures under Decree 11,964/2024. These reliefs materially change project economics and should be built into the structure from the start.
The incentive framework taking shape
Brazil has decided that exporting unprocessed ore is not the ambition. A connected set of policies aims to pull capital into exploration and, above all, into downstream processing and manufacturing.
The clear policy preference is for investment that adds value inside Brazil. An investor that structures for the downstream is positioned to capture incentives that a pure export-of-ore model will not reach. Because the headline bill is not yet enacted, the prudent course is to structure for the regimes already in force and monitor the PNMCE through the Senate.
Structuring an investment: key takeaways
Investing in Brazilian rare earths?
From acquiring ANM titles and structuring the Brazilian vehicle to environmental licensing, the nuclear-monopoly analysis and accessing critical minerals incentives, a rare earth project needs coordinated advice.
This guide is a general overview only and does not constitute legal, tax or investment advice. Brazilian mining, nuclear, environmental and tax law change frequently, including reforms currently in progress such as the critical minerals bill before the Senate and the consumption tax transition. The treatment of any project depends on the deposit, its location and mineralogy, the structure adopted and the current state of the law. Obtain specific legal and tax advice before acquiring mineral rights or committing capital.
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