The Senate approved the bill after the lower house passed it in May, advancing one of the most significant pieces of mining legislation in recent years for Latin America’s largest economy.

Brazil Establishes Framework for Critical Minerals

The approved bill clarifies the legal definition of minerals including nickel, lithium and other rare earths, giving the sector a clearer regulatory footing. Under the proposed framework, the government would create a federal council responsible for determining which minerals will be classified as critical and strategic.

This critical minerals policy carries particular weight given Brazil’s resource position. Despite modest rare earth production, the country holds the world’s second-largest rare earth reserves behind China. That abundance has attracted interest from countries seeking to reduce their dependence on Chinese supply, including the United States and the European Union. Rare earths are considered essential for technology across key industries, from renewable energy and electric vehicles to weapons manufacturing.

The bill’s passage through Congress reflects the growing global importance of securing diversified mineral supply chains, a priority that has placed Brazil’s strategic minerals under increasing international attention.

Funding and Mineral Classification Measures

The legislation establishes a government guarantee fund with an initial amount of 2 billion reais, equivalent to approximately $392.7 million. It also provides for 5 billion reais in tax credits over a five-year period, measures designed to support development within Brazil’s critical minerals sector.

These financial provisions form the backbone of the critical minerals policy and represent a substantial commitment of public resources toward the mining industry, pending presidential approval.

However, the bill has not been without opposition. Critics have raised concerns that the proposed federal council could result in excessive government intervention, potentially creating obstacles to sector development rather than removing them. The debate around the council’s role highlights the tension between establishing strategic oversight of mineral resources and maintaining a regulatory environment conducive to private investment.

Brazil’s mining policy landscape continues to evolve as the country balances its vast mineral wealth against the need for a modern regulatory structure. The bill, once signed into law, would position Brazil more formally within the global competition for critical and strategic minerals that underpin modern industrial supply chains.

Presidential sign-off remains the final step before the critical minerals policy takes effect. The mining industry and international observers will be watching closely as the legislation moves toward that stage.

Boliden Agrees to Take Control of Nexa Resources

Under the terms of the definitive agreement, Votorantim will receive 0.250 newly issued Boliden shares for each Nexa share it holds. That translates to approximately 21.4 million newly issued Boliden shares, which would give Votorantim an ownership stake of around 7.0% in Boliden after closing. The implied consideration for Votorantim’s shares is approximately $1.31 billion, while Nexa’s implied enterprise value stands at roughly $3.666 billion.

The Nexa Resources acquisition is expected to close during the first quarter of 2027, subject to several conditions. These include Boliden shareholder approval, Nexa shareholder approval, regulatory approvals and other customary closing conditions. Until those requirements are met, Boliden does not yet control Nexa Resources.

Following the closing, Nexa would be fully consolidated in Boliden’s financial statements. Boliden has also agreed with Nexa to launch a voluntary tender offer for the remaining Nexa shares not acquired through the transaction with Votorantim. That tender offer would be initiated after the deal closes and is separate from the definitive agreement itself.

Deal Expands Zinc and Silver Mining Footprint

Boliden has stated that the Nexa Resources acquisition will strengthen its position as a zinc mining producer and add meaningfully to its silver mining business. The transaction is expected to broaden Boliden’s footprint in base metals across Latin America mining markets, complementing its existing operations in Europe.

Should the deal close as planned, Boliden would operate 12 mining units and eight smelter units spanning both Europe and Latin America. That expanded portfolio would position Boliden among the larger diversified base-metals producers globally, with zinc mining and silver mining forming the core of the combined operation.

The acquisition of Nexa Resources reflects ongoing consolidation in the metals sector, where producers are seeking scale and geographic diversification. Nexa operates mines and smelters primarily in Brazil and Peru, giving Boliden direct access to established Latin America mining assets and processing infrastructure.

For the broader mining industry, this Nexa Resources acquisition underscores continued appetite for zinc mining and silver mining assets at a time when supply-side constraints and long-term demand fundamentals remain central to base-metals strategy. The deal also highlights the role of Latin America mining as a key growth region for global producers.

Boliden has been clear that the transaction remains subject to the approvals and conditions outlined in the agreement. No operational changes or production increases have been confirmed ahead of closing. The voluntary tender offer for remaining minority shares would only proceed following completion of the primary transaction with Votorantim.

The Nexa Resources acquisition, if completed on the expected timeline, would reshape Boliden’s operational profile and extend its reach well beyond its traditional European base.

The declaration establishes a cooperation framework rather than committing to specific mine developments or production targets. It signals an intent among the four countries to coordinate more closely on geological information sharing, mining policies, regulatory standards and sector oversight. Together, the signatories hold substantial reserves of both copper and lithium, making their strategic minerals cooperation a matter of considerable interest to downstream industries worldwide.

Scope of the Regional Mining Cooperation Framework

Under the joint declaration, the four nations agreed to develop initiatives spanning geological research, specialised training, technology transfer, innovation and the development of human capital within their respective mining sectors. The framework also covers alignment on regulatory approaches and the exchange of geological data, which could improve exploration efficiency and policy consistency across the region.

The countries further agreed to pursue technical and financial support from multilateral institutions to advance strategic-mineral projects within South America. This aspect of the cooperation framework reflects a recognition that large-scale mineral development often requires external financing alongside domestic investment.

It is important to note that this declaration represents a statement of shared intent. No individual mining projects, investment commitments or production volumes were announced as part of the agreement. The strategic minerals cooperation outlined in the pact is designed to lay groundwork for future coordination rather than deliver immediate changes to output or supply.

Strengthening South America’s Position in Global Supply Chains

The agreement comes at a time when global demand for copper and lithium continues to grow, driven by the energy transition and expanding electrification. South America already accounts for a significant share of world copper production, while Argentina, Bolivia and Chile together form a major part of the so-called lithium triangle.

By aligning their mining policies and pooling geological expertise, the four countries aim to attract greater investment into regional supply chains and present a more unified offering to international buyers and partners. The declaration positions South America as a region committed to maintaining its role in supplying strategic minerals to global markets.

For the mining industry, the agreement underscores the growing importance of regional coordination in a sector where supply security and regulatory predictability are increasingly valued by investors and offtakers alike. Whether this strategic minerals cooperation translates into tangible project-level outcomes will depend on the follow-through from each signatory government and the engagement of multilateral institutions in the months ahead.

Prime Minister Luis Galarreta told Congress that the administration of President Keiko Fujimori, who took office in July, plans to authorise 240 exploration and extraction projects this year. The Peru mining investment push is expected to be driven primarily by private companies, with the government focusing on creating the right conditions for capital to flow.

Peru Mining Investment Target Reaches $33 Billion

Galarreta outlined the scale of the ambition when he confirmed the $33 billion figure as the government’s expectation for mining investment over the current term. The target covers a range of exploration projects Peru is looking to advance alongside larger extraction developments.

Private-sector companies are expected to be the main source of that capital. The government has positioned its role as providing the framework rather than the funding — ensuring legal certainty, predictable permitting and timely decision-making from officials involved in mining approvals Peru relies on to keep projects moving.

240 Projects Face Faster Approval Process

A central part of the strategy involves authorising 240 exploration and extraction projects within the current year. Galarreta said officials would concentrate on reducing delays and eliminating overlapping procedures that have historically slowed mining project development in the country.

Importantly, the government stated that these efforts to streamline mining permitting would not come at the cost of environmental or social standards. Peru mining investment is being framed as part of a broader push toward responsible development, balancing faster execution with continued safeguards.

The country remains one of the world’s major copper-producing nations, and clearing bottlenecks in the approvals process could help unlock a significant portion of the planned pipeline.

Government Seeks Predictable Mining Development

Beyond individual project timelines, the Fujimori administration has signalled that it wants to establish a more predictable environment for Peru mining projects overall. Legal certainty and consistent permitting processes were highlighted as priorities during Galarreta’s address to Congress.

The government has described its mining push as part of a wider effort to encourage responsible investment while improving how major projects are executed. For companies evaluating Peru mining investment opportunities, the emphasis on clearer rules and faster government responses addresses long-standing concerns about bureaucratic uncertainty.

Peru’s position as a leading copper producer gives it natural appeal for mining companies, and the government appears intent on making the regulatory side of the equation more competitive. Whether the full $33 billion target materialises will depend heavily on how effectively permitting reforms translate into real progress on the ground.

The deployment packages the autonomous electric mining trucks with an intelligent dispatching system alongside lifecycle operations and maintenance services. According to SANY, the solution has been tailored to the customer’s South American operations and pairs the trucks with roadside infrastructure and cloud-based dispatching.

SKT110Ei Trucks Combine Electric Power and Automation

The SKT110Ei is a battery-electric rigid haul truck equipped with SANY’s fully in-house autonomous driving system. The company describes the package as built for high availability and low energy consumption. The autonomy stack is intended to cut operating costs and reduce the need for onboard operators, according to SANY.

SANY frames the deployment of these autonomous electric mining trucks as a response to persistent challenges in the mining industry. These include shortages of skilled operators, safety exposure during haulage operations, and rising labour costs. The solution delivered to South America brings together electric mining trucks, autonomous haulage capability, and intelligent dispatching into a single integrated package.

The in-house technology stack behind the autonomous mining equipment includes drive-by-wire chassis, multi-sensor perception, AI-based decision-making, and cloud dispatch. SANY develops the full stack through its intelligent mining subsidiary.

SANY Expands Autonomous Mining Deployment

The South America shipment extends a deployment record that SANY has been building across China and other markets. As of July 2026, the company said it had more than 300 autonomous mining trucks in operation. Those trucks had logged more than 13 million kilometres of operation and moved over 41 million cubic metres of earth and rock, according to SANY.

At its Global Mining Summit held in Xi’an in May 2026, SANY reported that its intelligent mining systems were operating in more than 20 large open-pit mines and managing over 5,000 machines. The company also claimed more than 35 per cent of the global market for large-tonnage electric mining trucks.

During the same summit, SANY unveiled its first cabless pure-electric mining truck, the SKT145Ei. That vehicle runs a liquid-cooled dual-gun charging system designed for ultra-fast charging, representing a further step in the company’s electric and autonomous mining equipment development.

The shipment of autonomous electric mining trucks to South America extends SANY’s mining automation technology into Latin America for the first time. With its integrated approach combining battery-electric haulage, autonomous driving, and intelligent dispatching, the company is positioning its mining technology for broader international deployment.

Under the terms of the critical minerals partnership, both governments will promote investment and joint projects spanning the full lithium value chain. They will also exchange information on mineral policies and investment frameworks, establishing a more structured channel for cooperation between government agencies and private-sector companies on both sides.

The agreement reflects Argentina’s ambition to draw foreign capital into its export-oriented mining sector, while South Korea seeks to secure reliable supplies of minerals essential for batteries, electric vehicles, semiconductors and energy-storage systems. Argentina holds substantial lithium resources concentrated in the northwestern provinces of Salta, Jujuy and Catamarca, making it a strategically important partner for Asian manufacturers looking to strengthen their supply chains.

Major Lithium Investment Approved in Salta

An immediate signal of the critical minerals partnership’s commercial significance came when Argentina approved an expansion of South Korean company POSCO’s lithium project in the Salta province. The investment, valued at US$547 million, is expected to support annual production of 23,000 tonnes of lithium carbonate and generate more than US$300 million in yearly exports, according to Argentina’s Economy Ministry.

The approval underscores how quickly the critical minerals partnership is translating into tangible industrial outcomes. POSCO’s expanded operations in Salta are set to become one of the most significant lithium investment projects backed by South Korean capital in Latin America, reinforcing Argentina’s position as a growing force in the global lithium value chain.

Broader Economic Cooperation on the Horizon

Beyond lithium exploration and production, the two governments have finalised negotiations on a double-taxation avoidance agreement. Once signed and ratified, the treaty is expected to reduce tax uncertainty for Korean companies operating in Argentina and create more predictable investment conditions across the mining sector and other industries.

Officials indicated that cooperation under the critical minerals partnership may eventually extend beyond lithium to encompass copper, crude oil, liquefied natural gas and nuclear energy. Discussions over a potential trade framework linking South Korea with the Mercosur bloc were also referenced during the visit, suggesting that the bilateral relationship could broaden considerably in the coming years.

For Argentina, the initiative strengthens a national strategy aimed at converting its considerable mineral resources into hard-currency earnings through downstream processing and export growth. For South Korea, the critical minerals partnership offers a pathway toward more diversified supply chains and deeper access to one of the world’s most significant lithium regions.

The lithium value chain cooperation outlined in the memorandum of understanding covers every stage from early-stage lithium exploration through to refined product output, reflecting the comprehensive scope of the agreement. Both countries have signalled their intention to move swiftly from framework commitments to concrete project development, with the POSCO expansion serving as the first major milestone under the new partnership.

The next steps include formal signing and ratification of the double-taxation treaty and continued engagement between Argentine and South Korean officials on expanding the scope of the critical minerals partnership into additional resource sectors.

The agreements were signed during a summit between South Korean President Lee Jae-myung and Chilean President Jose Antonio Kast in Santiago on 30 July. The South Korea Chile Mineral Partnership establishes a long-term framework for cooperation spanning mineral exploration, processing, technology development and supply chain resilience.

Mineral Cooperation Expands Across the Lithium and Copper Value Chain

Under the mineral resources MOU, the two governments agreed to elevate their Joint Committee on Mineral Resources Partnership to the ministerial level while creating a new director-general-level working channel to improve coordination.

The enhanced South Korea Chile Mineral Partnership will support collaboration throughout the lithium and copper value chain, covering exploration, mine development, mineral processing, technology cooperation and workforce exchanges.

According to the South Korean government, the agreement is expected to improve the stability of annual critical mineral imports from Chile, valued at approximately US$2.1 billion. The framework is also intended to provide institutional support for Korean mining, battery and manufacturing companies seeking to expand their operations in Chile.

Investment Agreements Support Critical Minerals Industries

Alongside the mineral partnership, both countries signed an investment cooperation MOU designed to encourage greater two-way investment, facilitate business delegations and improve the exchange of investment information.

The initiative is expected to strengthen cooperation in industries that rely heavily on secure supplies of critical minerals, including battery manufacturing, semiconductors and advanced industrial technologies.

The South Korea Chile Mineral Partnership also complements broader efforts by both governments to build more resilient supply chains for minerals that are increasingly important to the global energy transition.

Alongside the South Korea Chile Mineral Partnership, South Korea and Chile signed additional memorandums of understanding covering investment, public safety, maritime safety and polar research, although the mineral partnership remains the key agreement supporting critical minerals cooperation.

The project, known as PaNaBat, will establish a long-term networking platform connecting research institutions, industry partners and technology developers from Germany and Chile. The initiative focuses on advancing sustainable battery raw materials, improving lithium extraction technologies and supporting the transition towards a circular battery economy.

The programme also seeks to diversify international supply chains for lithium and other critical minerals while encouraging technology transfer, industrial cooperation and academic collaboration between Europe and Latin America.

PaNaBat Platform Promotes Sustainable Lithium Technologies

The PaNaBat platform brings together leading organisations from both countries to develop resource-efficient extraction methods and next-generation battery recycling technologies.

Participants include Chile’s Universidad Católica del Norte through its Lithium I+D+i Center, Fraunhofer Chile and Germany’s Fraunhofer Institutes for Thin Film and Surface Technology (IST), Solar Energy Systems (ISE) and Silicate Research (ISC). Fraunhofer ISC is coordinating the project.

The collaboration comes as global demand for lithium continues to increase alongside electric vehicle and battery manufacturing. More than half of the world’s lithium reserves are located within the Lithium Triangle spanning Chile, Bolivia and Argentina.

Conventional lithium production in Chile largely relies on evaporation ponds in the Atacama Desert, a process that has attracted growing attention because of its water consumption and potential environmental impacts in sensitive ecosystems.

To address these challenges, researchers involved in the PaNaBat platform are focusing on emerging technologies such as Direct Lithium Extraction (DLE) and closed-loop evaporation systems designed to improve efficiency while reducing environmental impacts. The project will also integrate ecological assessments tailored to local operating conditions to support more sustainable production practices.

Industry Collaboration and Circular Economy at the Centre

A central component of the initiative is the creation of a digital networking platform designed to connect companies, universities and research organisations working across the battery materials value chain.

Pilot projects have already begun during the platform’s initial development phase, allowing participants to test collaborative models before expanding to include additional industrial and research partners.

Beyond lithium extraction, the PaNaBat platform also supports the development of circular economy solutions for battery materials including lithium, cobalt, nickel and aluminium. Research activities will examine advanced recycling technologies featuring closed-loop material recovery, automated battery disassembly, innovative sorting methods and improved material processing.

Rather than recovering raw elements alone, researchers aim to preserve valuable material functionality so recovered compounds can be directly reused in battery manufacturing, improving resource efficiency and reducing waste.

The initiative also explores opportunities to produce lithium hydroxide and lithium carbonate using more sustainable Direct Lithium Extraction technologies while adapting mining and mineral processing expertise for battery recycling applications.

Environmental Assessment Supports Industrial Deployment

Environmental performance forms another major pillar of the project. Researchers will integrate Life Cycle Analysis (LCA), Life Cycle Engineering (LCE) and Integrated Computational Life Cycle Engineering (ICLCE) into technology development to evaluate environmental impacts during the earliest design stages.

By incorporating sustainability assessments throughout research and development, project partners aim to accelerate the commercial adoption of environmentally responsible battery technologies.

An industry advisory board made up primarily of German and Chilean small and medium-sized enterprises will provide technical guidance and support implementation throughout the project. The collaboration is expected to strengthen international partnerships while supporting more sustainable battery material production and resilient supply chains for the global energy transition.

The growing alignment between Brazil and South Korea on critical minerals mining cooperation reflects broader global competition for resources like lithium, rare earth elements, nickel, and cobalt. These materials are indispensable for manufacturing electric vehicle batteries, semiconductors, renewable energy infrastructure, and advanced defense systems. Both countries see strategic value in partnering rather than competing in a market increasingly shaped by geopolitical tensions and supply chain vulnerabilities.

Why Brazil and South Korea Are Partnering on Critical Minerals

Brazil holds one of the world’s most diverse mineral reserves, with vast deposits of lithium, niobium, rare earths, and other strategically important resources. The country has been actively seeking foreign investment and technology transfer to develop these assets more efficiently, while also adding more value domestically through downstream processing rather than raw material exports alone.

South Korea, on the other hand, is a major manufacturing economy with heavy dependence on imported raw materials. The country’s electronics, automotive, and battery sectors require a steady and diversified supply of critical minerals. By forging a strategic partnership with Brazil, South Korea aims to reduce its reliance on any single supplier and build more resilient supply chains for its industries.

This mining cooperation between Brazil and South Korea builds on years of diplomatic engagement. High-level meetings between government officials and industry leaders from both nations have resulted in memoranda of understanding, investment commitments, and frameworks for joint mineral exploration and processing projects.

Key Agreements and Joint Ventures Taking Shape

Several concrete initiatives are driving the critical minerals mining cooperation forward. South Korean companies have been increasing their presence in Brazil’s mining sector, exploring opportunities in lithium extraction, rare earth processing, and nickel production. These ventures often pair South Korean technological expertise and capital with Brazilian geological assets and local knowledge.

Government-backed institutions on both sides have facilitated introductions between private sector players, helping to accelerate deal-making. Brazilian mining authorities have expressed interest in attracting South Korean investment not just for extraction but also for building refining and processing capacity within Brazil. This aligns with Brazil’s broader economic strategy of moving up the value chain in its mining sector.

South Korean firms involved in battery manufacturing and electronics have been particularly active, viewing Brazil as a long-term source of raw materials that can help them maintain competitiveness in global markets. The partnership model being pursued emphasizes mutual benefit, with technology sharing, workforce training, and infrastructure development forming key pillars alongside mineral supply agreements.

Supply Chain Security in a Shifting Global Landscape

The urgency behind this critical minerals mining cooperation is driven in part by the rapidly changing global supply chain landscape. Concentration of mineral processing in a small number of countries has raised concerns among manufacturing nations about potential disruptions. South Korea has identified diversification of mineral sources as a national priority, and Brazil represents one of the most promising partners in this effort.

For Brazil, the partnership offers access to advanced mining and processing technologies, as well as guaranteed offtake agreements that provide revenue certainty for new projects. The country’s regulatory environment has also been evolving to make it more attractive for foreign investors in the mining sector, with streamlined permitting processes and clearer guidelines for environmental compliance.

Both nations have also discussed collaboration on sustainable mining practices. As environmental, social, and governance standards become more important in global mineral supply chains, Brazil and South Korea see an opportunity to set benchmarks for responsible extraction and processing that could serve as models for other partnerships around the world.

Looking Ahead to 2026 and Beyond

The trajectory of Brazil and South Korea’s mining cooperation on critical minerals points toward deeper integration in the coming years. Both governments have signaled their intent to expand the scope of their partnership, potentially bringing in additional minerals and extending cooperation into areas like mineral recycling and circular economy initiatives.

Industry observers note that the scale of Brazil’s untapped mineral reserves, combined with South Korea’s manufacturing demand, creates natural complementarity that could sustain this strategic partnership well beyond 2026. As global demand for critical minerals continues to rise in step with the energy transition, the collaboration between these two nations is positioned to deliver tangible benefits for both economies.

The continued strengthening of this mining cooperation underscores how critical minerals have moved to the center of international economic diplomacy. For Brazil and South Korea, the partnership represents a practical and forward-looking approach to supply chain security that serves the strategic interests of both countries.

The iron ore prepayment financing model allows mining companies to receive upfront capital from buyers or trading houses in exchange for guaranteed future delivery of commodities at agreed-upon terms. For CMOC, this approach provides immediate liquidity while leveraging the value of its iron ore production in Brazil, one of the world’s most significant iron ore producing nations.

How the Iron Ore Prepayment Model Works

Prepayment financing has gained traction across the global mining sector as companies look for alternatives to traditional bank lending and equity markets. Under such agreements, a buyer advances funds to the producer, and the producer commits to delivering a set volume of the commodity over a defined period.

This structure benefits both parties. The mining company gains access to working capital without diluting equity or taking on conventional debt, while the buyer secures a reliable supply chain for iron ore at potentially favorable pricing. For CMOC’s Brazilian operations, the iron ore prepayment financing arrangement offers a way to fund ongoing development and operational costs while maintaining production momentum.

CMOC’s Growing Presence in Brazil

CMOC has steadily expanded its footprint in Brazil’s mining sector over recent years. The company’s Brazilian operations have become a critical component of its global portfolio, contributing meaningfully to its overall production output. Brazil remains one of the top iron ore producing countries in the world, and CMOC’s assets in the country position it to capitalize on sustained global demand for the steelmaking raw material.

The decision to pursue prepayment financing rather than conventional funding routes reflects a broader strategic shift within the company. By tying financing directly to its iron ore production in Brazil, CMOC aligns its capital structure more closely with its operational output, reducing reliance on external credit markets that can be subject to volatility and tightening conditions.

A Broader Trend in Mining Financing

CMOC’s move is part of a wider pattern across the mining industry, where producers are increasingly turning to commodity-linked financing structures. The prepayment financing shift has been driven by several factors, including tighter lending standards from traditional banks, fluctuating commodity prices, and the desire of trading houses and end-users to lock in supply.

This mining financing deal also highlights how companies operating in jurisdictions like Brazil are finding creative ways to unlock the value embedded in their resource bases. As global demand for iron ore continues to be underpinned by infrastructure development and steel production in major economies, prepayment arrangements offer a practical mechanism for bridging the gap between production timelines and capital requirements.

The iron ore prepayment financing approach is particularly well-suited to operations with predictable output and established logistics chains, both of which characterize CMOC’s Brazilian assets. The arrangement underscores the evolving relationship between mining companies and their financial and commercial partners, where traditional boundaries between offtake agreements and financing are becoming increasingly blurred.

Implications for CMOC’s Operational Strategy

By securing this prepayment financing deal, CMOC positions itself to maintain steady investment in its Brazilian mining operations without the constraints that often accompany conventional borrowing. The upfront capital can be directed toward sustaining production levels, funding exploration activities, or improving operational efficiency across its iron ore assets.

The prepayment financing shift also signals CMOC’s confidence in the long-term viability of its iron ore production in Brazil. Committing to future deliveries requires assurance that output targets can be met reliably, suggesting the company views its Brazilian operations as stable and capable of sustained performance.

As the global mining sector continues to evolve in its approach to capital management, CMOC’s iron ore prepayment financing arrangement in Brazil serves as a clear example of how producers are adapting their strategies to meet both operational and financial objectives in a competitive landscape.