Requests for research authorization for rare earths explode, but agency fears that budgetary blockages will cause losses

A survey by the National Mining Agency (ANM) shows that, since 2023, Brazil has recorded significant growth in requests for research authorization for rare earths.
Brazil has the largest reserves of rare earths in the world after China
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Called "rare earths", these minerals make up a group of 17 chemical elements found in nature, normally mixed with other ores that are difficult to extract and have high value commercial.
Unknown to the public eye, but coveted behind the scenes in industry and diplomacy, "rare earths" have become one of the most strategic resources on the planet. They are essential for the manufacture of wind turbines, electric car batteries, transmission cables, rockets, medical equipment, weapons and state-of-the-art electronic devices.
With a central role in the energy transition, defense and high technology production, these resources are at the center of geopolitical disputes and negotiations, and Brazil has privileged potential to stand out in the scenario.
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The numbers demonstrate the increase in interest in rare earths in recent years - especially from 2023 -, a reflection the perception of growing strategic relevance.
Between 2023 and the beginning of June, around 3 thousand requests were recorded. For comparative purposes, 745 applications were recorded in the entire period between 1975 and 2022.
The research application is the first phase in a long period until the mining concession, when a company receives authorization to explore a deposit.
Rare earths: types and uses
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Budget blockage
Despite the potential, activities related to rare earths may be affected by the blockage of R$ 22.7 million in the budget of the National Mining Agency (ANM). The warning was made by the municipality's director-president, Mauro Sousa.
A block in the budget is like a temporary "emergency brake" on the government's finances. It happens when mandatory expenses, such as pension payments, rise more than expected. When this happens, the government needs to retain part of the money from non-essential expenses, such as works, so as not to exceed the permitted spending limit.
According to Sousa, the budgetary restriction will require the agency to review priorities in a scenario that is already lacking resources.
Director-president of ANM, Mauro Sousa
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"This means allocating resources in the best possible way. Not all activities will be developed in the necessary and appropriate time", he told journalists after an event at the Brazilian Mining Institute (Ibram) this week.
The sector responsible for critical and strategic minerals already operates with a "modest" structure. According to Sousa, the unit has four employees, who lead studies and actions related to the topic.
The budget limitation occurs at a time when Brazil is seeking to expand its participation in the global chain of these minerals. The director of ANM mentions that the country has signed cooperation agreements and memorandums of understanding with other countries to accelerate studies and investments in the sector.
"We create international commitments and we need to have an institutional structure capable of providing adequate responses. When this happens, we lose the ability to fulfill what the Brazilian State is committing to", he said.
Brazilian Geological Service advances with research on the potential for rare earths
Disclosure/SGB
For the director-president of ANM, there is a contradiction between the country's strategic objectives and the reduction in resources allocated to the municipality.
"We fail when we cut resources that do not allow what was agreed to be effectively fulfilled. This is a contradiction of the Brazilian State", he assessed.
Other areas
In addition to actions aimed at strategic minerals, the blockade may affect issues such as area auctions for exploration and dam inspection actions. If resource limitations are maintained, 43 dams and 18 mining piles that should receive technical inspections by the end of the year may be outside the initially planned schedule.
These inspections support regulatory decisions, inspection actions and operational safety assessments. Some of the structures planned for inspection require continuous monitoring due to the potential social, environmental and economic impact, including facilities located close to communities and environmentally sensitive areas.
Resource restrictions also affect steps considered essential for the analysis of mining processes. In many cases, field inspections are necessary for the approval of Final Research Reports and Economic Development Plans (PAEs), a document that details how a deposit will be commercially explored.
Without these in-person checks, processes tend to slow down, which can delay investments and the entry of new ventures into operation.

Source: G1