Brazil rare earth ambitions clash with strained mining regulator

Brazil’s aim to become a leader in rare earths mining is running head-on into budget cuts and staffing shortages at the sector’s regulatory agency.

The Latin American nation is pursuing partnerships with other countries on critical minerals and rare earths, yet its National Mining Agency, or ANM, lacks the resources to keep up with inspections and meet international commitments, said director-general Mauro Sousa.

“It’s a contradiction at the heart of the Brazilian state,” Sousa told reporters Tuesday at an industry conference organized by mining group Ibram in Brasília.

Outside of China, Brazil has the world’s largest reserves of critical minerals. Brazil’s government recently cut funding for agencies including ANM, which oversees more than 255,000 active mining claims, inspects mining structures and handles permits for new projects.

The cuts also are affecting review of structures for mine waste materials called tailings dams in a country still marked by two major disasters at operations owned by Vale SA. The regulator’s workforce is less than half the level needed, and only four employees are dedicated to critical minerals, Sousa said.

Still, ANM is facing a boom in rare earth exploration applications — ones it will likely struggle to process. Since 2023, the agency has received 3,038 requests, compared with 745 filed between 1975 and 2022.

“ANM is currently on life support,” Sousa said.

(By Mariana Durao)