BNDES Shifts to Equity and Project Finance to Unlock Brazil’s Critical Minerals

Overview

• BNDES, speaking Tuesday at a Valor and O Globo forum, said it will use equity stakes and project‑finance loans that are paid back from a project's cash flow to advance a R$50 billion pipeline of critical‑mineral projects.
• The bank and Vale created an investment fund for junior miners, which are small, early‑stage firms, and the fund is starting its first exploration investments.
• The plan leans on co‑financing with private banks and foreign development lenders, and BNDES flagged the Climate Fund with roughly R$27 billion this year as a priority source of support.
• A shortage of collateral is blocking early projects, and a bill in Congress would set up a public guarantor fund to help cover loans.
• Officials and industry voices said policy now aims to process and refine minerals in Brazil under the Nova Indústria Brasil agenda so the country sells batteries and components, not just raw ore.