Brazil Mining Guide

Brazil Mining Guide, produced by KPMG and the Instituto Brasileiro de Mineração (IBRAM), presents a comprehensive analysis of the mining sector in the country, focusing on sectoral data, regulatory environment, tax structure, critical minerals, environmental, social and governance (ESG) issues, and investment prospects.

As the data and insights in the publication demonstrate, the mining sector in Brazil combines geological scale, mineral diversity, a consolidated export base, and a significant flow of investments, factors that place the country in a global strategic context.

Brazil occupies a prominent position among the world's leading mineral producers, with the production and marketing of more than 90 mineral substances.

The country is a global leader in niobium and maintains a relevant position in iron ore, gold, copper, nickel, bauxite/aluminum, manganese, graphite, phosphates, limestone, and ornamental rocks.

Along with Australia, Brazil accounts for approximately one-third of global iron ore exports, reinforcing its structural role in global steel and infrastructure supply chains.

In 2025, the mining sector in Brazil exported approximately 431 million tons (+7.1% in volume compared to 2024), consolidating itself as a pillar of the Brazilian trade surplus.

Tax revenue associated with the sector totaled R$ 103.1 billion (+10.3% compared to 2024), in addition to CFEM, whose collection remained concentrated in Minas Gerais (45%) and Pará (39%).

Data indicates that economic and fiscal performance remains strongly anchored in specific production chains and hubs.

The global energy transition has been increasing the demand for critical minerals. In this context, Brazil has significant reserves of lithium, nickel, graphite, rare earths, manganese, and copper.

The country holds the world's largest reserves of graphite and niobium. In the case of niobium, it accounts for approximately 92% of global production, with about 16 million tons in reserves.

In the last five years, spending on the exploration of transition minerals has grown by about 240%; the growth in extracted volumes was around 40%.

Data indicates progress in exploration, mine development, processing, and refining projects.

Regulation is anchored in the Federal Constitution and the Mining Code (Decree-Law No. 227/1967). The Union holds exclusive competence to regulate, grant, and oversee mining rights through the National Mining Agency (Agência Nacional de Mineração - ANM).

The two main regimes are:

• Research authorization: can be extended for up to four years, renewable for another four.
• Mining concession: in this case, the validity is linked to the useful life of the deposit.

The system is centralized and establishes technical, financial, and environmental requirements for obtaining mining titles. The National Mining Plan 2025–2050 (Plano Nacional de Mineração - PNM 2025–2050), currently under public consultation, organizes the sectoral strategy into pillars such as sustainability, governance, and responsible use of mineral resources.

Mining is subject to the general Brazilian tax regime, plus specific charges.

Main taxes and charges:

• Financial Compensation for the Exploitation of Mineral Resources (Compensação Financeira pela Exploração de Recursos Minerais - CFEM): royalty calculated on the net revenue obtained from the commercialization of the mineral product, according to specific calculation rules provided for in the legislation.
• Mineral Resources Inspection Fee (Taxa de Fiscalização de Recursos Minerais - TFRM): state tax levied in certain states (such as Minas Gerais, Pará, Amapá, Goiás, Mato Grosso and Mato Grosso do Sul), intended to finance the control, monitoring and inspection activities of research, mining and exploitation of mineral resources.
• Corporate Income Tax (Imposto sobre a Renda da Pessoa Jurídica - IRPJ): 15% rate on taxable profit, plus an additional 10% on the portion of profit that exceeds the quarterly legal limit.
• Social Contribution on Net Profit (Contribuição Social sobre o Lucro Líquido - CSLL): 9% rate on the tax base calculated in accordance with tax legislation.

Since 2024, Brazil has adopted transfer pricing rules aligned with the guidelines of the Organisation for Economic Co-operation and Development (OECD), based on the arm's length principle.

From 2025 onwards, the Qualified Domestic Minimum Top-up Tax (QDMTT) came into effect in the country. This is an additional social contribution established to ensure a minimum effective tax rate of 15% for multinational groups with consolidated revenue exceeding €750 million, in line with Pillar 2 of the OECD's Base Erosion and Profit Shifting (BEPS) project.

The Tax Reform will be implemented gradually between 2026 and 2033. Exports will remain exempt from the Contribution on Goods and Services (Contribuição sobre Bens e Serviços - CBS) and the Tax on Goods and Services (Imposto sobre Bens e Serviços - IBS), maintaining the non-incidence on export operations, as foreseen in the new model.

Infrastructure investment reached R$ 260.6 billion in 2024, with approximately 80% coming from the private sector.

Railway projects such as Ferrogrão and the North-South Railway, among others, total approximately R$ 100 billion in projected investments and aim to reduce logistical bottlenecks.

Regarding the energy matrix, Brazil combines a significant mineral base with predominantly renewable energy, an element that reinforces competitiveness in chains associated with decarbonization.

The sector operates under strict dam safety rules and strengthened environmental requirements following significant events of the last decade. In 2025, the General Environmental Licensing Law (Law 15.190/2025) was approved, establishing a national framework with standardized procedures.

Widely adopted voluntary certifications include:

• Towards Sustainable Mining (TSM): a sustainability performance initiative originally developed by the Mining Association of Canada and adopted in Brazil by IBRAM, focusing on governance, community relations, environmental management, and safety.
• Initiative for Responsible Mining Assurance (IRMA): an international standard for independent certification that assesses environmental, social, and governance practices throughout the mining lifecycle.
• Copper Mark: a guarantee system focused on responsible copper production, based on environmental, social, and governance criteria audited by third parties.
• Aluminium Stewardship Initiative (ASI): a global standard that establishes sustainability requirements for the entire aluminum value chain.

Starting in 2026, publicly traded companies and financial institutions regulated by the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM) will be required to disclose financial information related to sustainability in accordance with International Financial Reporting Standards (IFRS) S1 and S2, issued by the International Sustainability Standards Board (ISSB), with a requirement for independent assurance.

Brazil Mining Guide highlights that, in a context of energy transition and reorganization of global supply chains, Brazil maintains structural relevance as a mineral supplier, combining geological resources, institutional framework, and a medium- and long-term investment agenda.

Mining in Brazil combines scale, mineral diversity, a consolidated export base, regulatory evolution, and a significant investment pipeline – in other words, it is a sector rich in opportunities and with structural foundations that support its relevance in the global scenario.