Illegal mining and smuggling of critical minerals have become a major challenge for Brazil’s mining sector. Federal Revenue Service data show that since the second half of 2024, more than 50,000 tons of minerals classified as strategic or critical were targeted for irregular export through ports. Over the past two years, customs intercepted 943 containers carrying copper, manganese, ilmenite, zirconite, quartz and other minerals. The seizures total 25,000 tons.
The amount would have been nearly twice as high if a 25,000-ton illegal manganese cargo had not left the port of Belém on a bulk carrier before customs could act. The case resulted in a 10 million reais fine. According to Comex Stat data, the seized 25,000 tons equal about 1% of Brazil’s legal copper and manganese exports over the same period. Copper—important for the energy transition and electric-car batteries—was the most frequently intercepted mineral: more than 10,000 tons in 395 containers at Belém, Santos, Pecém, Itajaí, Salvador and Vitória. Nearly 8,000 tons of manganese, used in steel and batteries, were seized at three ports. Other minerals included ilmenite, a source of titanium used in defense industries; quartz, associated with silicon for semiconductors and solar panels; zirconite, used in nuclear reactors; and shipments containing illegal gold.
Rômulo Brandão Neto, who heads the Federal Revenue Service’s export enforcement team in Santos, said a common method is to use fake invoices to “launder” shipments. Shell companies and nominees use genuine National Mining Agency (ANM) licenses tied to a legitimate site and a permitted extraction quantity to issue false invoices covering larger volumes mined elsewhere. Because the ore is difficult to conceal physically, the fraud falsifies the cargo’s documented origin. Neto said Asia, especially China, accounts for the largest destination by volume, though only a police investigation can identify the buyers.
ANM said illegal mineral trade harms more than federal assets: it distorts competition, may reduce public revenue and damages international buyers’ confidence in Brazilian mineral production. The agency plans to improve origin tracking and integrate mining, tax, logistics and customs information. Pablo Cesário, president of the Brazilian Mining Institute (Ibram), said illegal mining has shifted from an artisanal activity to an industrial-scale operation, driven by higher prices and organized-crime infiltration. He compared that penetration with cases in other formal industries and said the financial motive is tied to a sharp rise in global prices for critical minerals.
Neto also warned that smuggling routes shift quickly. In 2024, the Federal Revenue Service began targeting illegal mineral exports at Vila do Conde port in Pará and found that more than 90% of the state’s containerized mineral exports were illicit or involved fraud. After enforcement tightened, containerized ore exports there fell to zero, but networks moved to Pecém and later to Santos, Salvador, Itajaí and Paranaguá. Neto said police and environmental operations against illegal mines often do not share the company identification numbers of sanctioned businesses with port customs. Without that information, shipments can continue moving through Brazil’s ports. Source: Folha de S.Paulo.