Policies

The Strategic Minerals Investment in Participations (FIP)

Source: International Energy Agency
Last updated: 4 April 2024

The National Bank for Economic and Social Development (BNDES) and the Ministry of Mines and Energy (MME) jointly introduced a BRL 1 billion (US$201 million) fund aimed at supporting strategic mineral projects in Brazil called the Fundo de Investimento em Participações (FIP) Strategic Minerals. This fund is specifically geared toward advancing minerals vital for the energy transition, decarbonisation, and sustainable food production.


Key points about the fund:

  • Open to small and medium-sized enterprises that align with its investment focus.
  • Aims to invest in 15 to 20 companies engaged in mineral exploration, research, and the establishment of new strategic mineral mines within Brazil. BNDES will contribute up to BRL 250 million (USD 50 million) to the fund, with participation limited to 25% of the total, with other national and international investors expected.
  • Focusses on minerals vital for the energy transition and decarbonisation, including cobalt, copper, tin, graphite, lithium, manganese, rare earth ore, platinum group ores, molybdenum, niobium, nickel, silicon, tantalum, titanium, tungsten, uranium, vanadium, and zinc. 
  • Aligns with BNDES’s long-standing support for the mining sector, which has involved BRL 8.3 billion (US$ 1.6 billion) in financing for approximately 1,800 companies.
  • Encourages invested companies to adopt exemplary Environmental, Social, and Governance (ESG) practices, aiming for positive impacts on local communities and minimising environmental effects of projects.