According to BNAmericas, the Infrastructure Committee of Brazil’s Senate is currently reviewing a bill that would significantly increase royalty rates on gold and iron ore—the two highest-value commodities in the country’s mining sector.

The proposal, introduced by Senator Carlos Viana of the Podemos (We Can) party, seeks to boost fiscal transfers to municipalities and states hosting mining operations. Under the plan:

• Iron ore royalties would rise from the current 2%–3.5% to a new range of 3.5%–7%, depending on project scale.

• Gold royalties would double from 1.5% to 3.5%.

The bill will undergo debate in the Senate, with representatives from the Ministry of Mines and Energy, the National Mining Agency (ANM), the Mining Technology Center, and the Brazilian Institute of Mining (Ibram) expected to participate in discussions.

Following review by the Infrastructure Committee, the legislation must pass through the Economic Affairs Committee before moving to the Chamber of Deputies for final approval. No timeline has been set for the final vote.

The push for higher royalties reflects the strategic and economic weight of iron and gold, which together account for the largest share of Brazil’s mining output value.

Parallel Focus on Rare Earths

In a related development, the Senate’s Science and Technology Committee held a hearing on September 10, 2025, to examine Brazil’s position in the rare earth elements (REEs) sector. The session addressed the challenges and economic opportunities tied to domestic rare earth mining and processing.

Senator Flávio Arns of the Brazilian Socialist Party (PSB), who drafted the hearing’s background document, emphasized the critical role of rare earths:

“Rare earth metals are indispensable raw materials for renewable energy, transportation, defense, and modern electronics—especially in the context of the global energy transition.”

Brazil, which holds the world’s 10th-largest rare earth reserves, is seeking to strengthen its role in this strategic supply chain amid rising global demand and geopolitical competition.

The dual legislative tracks—on royalty reform and strategic mineral policy—signal Brazil’s broader effort to maximize national benefits from its mineral wealth while positioning itself as a reliable, value-adding player in the global critical minerals market.

(Source: Ministry of Natural Resources)