SAO PAULO, April 24 - Brazil's Industry Minister Marcio Elias Rosa on Friday dismissed recent proposals to establish a state-owned enterprise dedicated to critical minerals and criticized a separate cooperation agreement between the state of Goias and the Trump administration as lacking constitutional and legal footing.
Responding to calls from lawmakers for a state-backed entity to manage exploration and processing of critical minerals - a concept that has circulated under the name Terrabras - Rosa said the idea is unnecessary. "There is no need whatsoever to create a state-owned company to carry out the exploration or processing of critical minerals. The regulatory framework already provides several ways to incentivize this sector," he told TV Brasil.
Rosa also directly challenged an agreement recently signed by the Goias state government and the Trump administration that aimed to foster cooperation on critical minerals. The pact reportedly sought to map mineral potential within Goias, link local miners with U.S. technology and support improvements to regulations. While those elements were spelled out in the agreement, Rosa said the arrangement does not stand up to constitutional scrutiny.
"From a constitutional and legal standpoint, it does not hold up," he said, adding that the prerogative to regulate and to establish relations with other countries is vested in the federal government. His comments underscore a dispute over the proper scope of state-level initiatives in a sector that has drawn political and commercial attention.
The minister's position frames two central points: that existing legal and regulatory tools can be deployed to encourage activity in the critical minerals space without creating a new state-owned operator; and that subnational agreements with foreign governments may exceed the constitutional authority of states when they touch on international relations and regulatory matters.
Rosa's remarks push back on legislative momentum for a state-backed vehicle and raise questions about the legal status of state-level international cooperation on strategic resources. He emphasized federal authority over international dealings, while noting the regulatory framework at the national level offers multiple mechanisms to incentivize the sector.
Summary of key facts
- Industry Minister Marcio Elias Rosa rejected the creation of a state-owned company to explore or process critical minerals.
- He criticized a cooperation agreement between Goias state and the Trump administration as unconstitutional and legally unsound.
- The Goias-US deal included mapping mineral potential, connecting local miners with U.S. technology and improving regulations.