Brazil's Senate passed PL 2.780/2024 on Wednesday, creating a presidential council that can block foreign takeovers of mining companies and review long-term supply contracts. The bill is directly tied to USA Rare Earth's $2.8 billion deal for Serra Verde, the only company outside Asia mining the full set of magnet rare earths at scale. Brazil still has no commercial magnet plant and refines almost none of what it mines; researchers estimate a fully domestic supply chain could be six to nine years away at best.
The law allows the government to scrutinize mining deals, raising concerns among miners that the new rules could scare off foreign investment.
