By Marcela Ayres and Bernardo Caram
BRASILIA, April 24 (Reuters) – Brazil’s planned critical minerals rules do not involve fresh tax breaks, Finance Minister Dario Durigan said on Friday, adding that their aim was to secure national sovereignty and add value through domestic processing.
Durigan, who took charge of the ministry last month, told Reuters from his new office that critical minerals would be a priority in a May or June auction for the Eco Invest program, 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 said 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,” he said in the interview.
“Investment is already being attracted and does not require tax breaks from the Brazilian government,” he said, adding that some support through programs such as Eco Invest makes sense as a form of targeted, limited and strategic economic subsidy.
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.
VENEZUELA
Durigan, who attended this month’s IMF and World Bank Spring Meetings in Washington, said Brazil has been active in efforts to restore Venezuela’s ties with multilateral institutions.
He said both the Trump administration and Asian stakeholders were interested in paving the way for Venezuela to regain access to financing to rebuild its infrastructure.
“Brazil’s position – that Venezuela is a relevant regional player and should turn the page to regain economic strength – was key,” he said, noting dialogue with Europe and others.
“As new investment opportunities emerge in Venezuela, Brazilian companies will also take part,” he added.
PREDICTION MARKETS
Durigan said the government will announce later on Friday measures to regulate prediction markets, which have grown globally but operate in a regulatory grey area in Brazil.
Brazil currently has specific rules for gambling, including online platforms, and for financial derivatives – both of which have implications for prediction markets, he said.
“There are two consequences, two outcomes of these rules,” Durigan said, stressing the need for a clearer regulatory framework for prediction markets to develop in Brazil.
(Reporting by Marcela Ayres and Bernardo Caram; Editing by Gabriel Araujo, Brad Haynes and Alexander Smith)
