Vale Says Fixing Brazil’s Permit System Is Worth 1.3 Trillion Reais. It Also Wants a Mineral Washington Is Chasing

Brazil · Mining

Key Facts

• The claimUp to R$1.3 trillion in sector tax revenue — but across 2026 to 2035, not in a single year.
• The documentA study titled Unlocking the Potential of Mining in Brazil, produced with Accenture, with fifteen proposed initiatives.
• Who presented itVale, in Brasília, with chief executive Gustavo Pimenta.
• The audienceIt is to be handed to candidates in the 2026 presidential election.
• The mineralRare earths — specifically monazite and cerium.
• WhereFive exploration areas in northern Espírito Santo, around Linhares and Jaguaré.

Fifteen proposals, a consultancy study, and a document written to be handed to next year’s presidential candidates.

Vale has put a number on Brazilian bureaucracy. The Vale mining permitting proposal, published as a study with Accenture, argues that a package of fifteen changes could lift tax revenue from the sector to as much as R$1.3 trillion — a figure worth reading carefully, because it covers a decade, from 2026 to 2035, rather than a single year.

What the Vale mining permitting proposal actually says

The document is called Unlocking the Potential of Mining in Brazil, and it was produced in partnership with the consultancy Accenture. It sets out fifteen initiatives, with environmental licensing at the centre of them.

Vale presented it in Brasília, with chief executive Gustavo Pimenta taking part. The company’s framing is that Brazilian mining is stagnant and needs to be unlocked — a phrase that does a lot of work in a document written by the sector’s largest company about the rules that govern it.

The R$1.3 trillion figure, roughly US$251 billion at 5.18 reais to the dollar, is the projected sector tax take across ten years under the proposed changes. Quoting it without the timeframe makes it sound like an annual windfall. It is not.

The intended readers are the candidates in next year’s presidential election. This is a lobbying document with a delivery date attached, and it should be read as one.

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What Vale does.Vale S.A., together with its subsidiaries, produces iron ore and nickel in Brazil, Asia, the Middle East, North Africa, Europe, the Americas, and Oceania. The company operates in two segments, Iron Ore Solutions and Vale Base Metals. It extracts, produces, and distributes iron ore, iron ore pellets, briquettes, nickel, copper, other ferrous…

The rare earths part, which is the more interesting half

Separately, Vale is seeking authorisations for five exploration areas in northern Espírito Santo, around the municipalities of Linhares and Jaguaré. The targets are rare earths — specifically monazite and cerium.

Monazite is a phosphate mineral that carries rare earth elements and, awkwardly, thorium, which is radioactive. That combination is why monazite deposits are technically straightforward to find and politically complicated to work.

Rare earths are the reason Washington is paying attention. China refines the overwhelming majority of the world’s supply, and the United States has spent several years trying to build alternative sources anywhere it can — which has made Brazilian deposits strategically interesting in a way they were not five years ago.

Why the permitting argument keeps being made

Environmental licensing in Brazil is genuinely slow, and the industry has complained about it for decades. It is also the mechanism through which communities, states and federal regulators get a say in whether a mine happens — which is why every proposal to streamline it is contested.

Vale in particular argues from a difficult position. The company was responsible for the Mariana dam collapse in 2015 and the Brumadinho collapse in 2019, which together killed hundreds of people. Any Vale proposal to speed up approvals is heard against that.

The counter-argument the company would make is that faster licensing and stronger licensing are not opposites, and that a decade-long backlog serves nobody. Both positions are arguable; the study is one side of the argument, professionally made.

What Espirito Santo has to do with it

Espírito Santo is a small coastal state north of Rio de Janeiro, better known for its port at Vitória, its iron ore pellet plants and its coffee than for critical minerals. Vale already has a substantial industrial presence there.

That existing footprint is part of the logic. Exploring for rare earths in a state where the company already runs port and processing infrastructure is a materially cheaper proposition than opening a frontier.

It is also, for the same reason, a state where a new mining front will be closely watched. Espírito Santo received a share of the Rio Doce contamination from the Mariana collapse in 2015, and local tolerance for mining expansion is not unconditional.

Five exploration areas is a long way from a mine. Exploration authorisations establish whether there is anything worth extracting; most of them end there.

Why this matters if you invest in Latin America

Brazil is the second-largest holder of rare earth reserves in the world and produces almost none of them. Closing that gap is the single clearest opportunity in Latin American mining, and permitting is the main thing standing in the way.

The geopolitical layer is what makes it move. American interest in non-Chinese rare earth supply gives Brazilian projects a buyer before they have a mine, which changes the economics of exploration.

For investors, the number to watch is not the R$1.3 trillion. It is whether the licensing changes get into any candidate’s actual platform between now and the election.

Frequently Asked Questions

What is Vale proposing?

A package of fifteen initiatives, set out in a study with Accenture called Unlocking the Potential of Mining in Brazil, centred on environmental licensing. Vale presented it in Brasília with chief executive Gustavo Pimenta, and it is to be delivered to candidates in the 2026 presidential election.

Is the R$1.3 trillion figure annual?

No. It is the projected sector tax take across ten years, from 2026 to 2035, under the proposed changes — roughly US$251 billion at 5.18 reais to the dollar. Quoted without the timeframe it sounds like an annual figure, which it is not.

Which mineral is Vale after in Espirito Santo?

Rare earths, specifically monazite and cerium, across five exploration areas in the north of the state around Linhares and Jaguaré. Rare earths are strategically significant because China refines most of the world’s supply and the United States is seeking alternatives.

Connected Coverage

Sources: Poder360 — mining in Brazil is stagnant and needs unlocking, says Vale; Investidor10 — Vale proposes an agenda of 15 initiatives to unlock mining

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error