Lula plans new 'national sovereignty' policy for strategic minerals

Brazilian President Luiz Inacio Lula da Silva told Reuters on Wednesday of his plans for a new national policy treating strategic minerals as a matter of "national sovereignty" in order to avoid exporting minerals without adding value locally.

"We won't allow what happened in the last century to happen again, where Brazil exports raw minerals and then buys products with very high added value," the president, known as Lula, said in the interview. "We want to add value in Brazil."

Lula's comments came as a new 50% tariff hit US imports from Brazil amid a political spat between the two countries linked to an investigation against the South American country's former president, Jair Bolsonaro.

Bolsonaro, under house arrest since late Monday, is standing trial on charges of plotting a coup to overturn his 2022 electoral defeat. Bolsonaro has denied wrongdoing.

US President Donald Trump, seen as a Bolsonaro ally, has decried what he calls persecution of Brazil's former leader.

Trump has long sought to secure US supplies of critical minerals, complaining of China's near-total control of the industry and striking deals with Ukraine to secure critical minerals in exchange for defense help.

Currently, Brazil lacks a complete mapping of its mineral wealth, Lula said, adding that his government would start this process by setting up the national council on mineral materials and standards.

The council will safeguard Brazil's control of its mineral wealth, allowing the country to become a global leader in the energy transition, Lula said, adding that businesses will not face difficulties following the council's creation.

"Few countries in the world have the opportunity that Brazil has in this area," Lula said.