Executive summary

Brazil’s mining sector has long been a foundation of national growth and a major global supplier of iron ore, bauxite, niobium, and copper. Today, however, the industry is approaching a turning point. The traditional linear model of ‘take–make–waste’ extraction is increasingly unsustainable amid declining ore grades, rising waste volumes, and growing environmental and social pressures. At the same time, global markets are transforming. Demand for critical minerals essential to the energy transition is surging, while investors, manufacturers, and policymakers expect transparent, low-carbon, and resource-efficient supply chains.

To remain competitive, Brazil must shift from an extractive to a circular model: one that maximises resource productivity, reduces waste, and keeps materials in use across multiple lifecycles. Strategies such as reprocessing tailings, recovering by-products, designing for reuse, and establishing closed-loop partnerships can unlock significant economic and environmental value. These models redefine mining as a regenerative system that delivers growth through efficiency, innovation, and stewardship rather than volume alone.

Brazil has a unique advantage in this transition. The country has repeatedly demonstrated its capacity for large-scale industrial innovation, from the ethanol revolution to the rise of Embraer. It also benefits from a strong ecosystem of research institutions, advanced mining companies, and a growing policy focus on sustainability. Pioneering initiatives are already proving circular economy viability: Vale’s Circular Mining Programme is reprocessing tailings to recover additional iron ore, produce sustainable sand and clinker substitutes. Vale Base Metals is developing projects to recover magnetite, copper and gold from copper tailings in Brazil. Vale Base Metals is also working with partners to recover nickel from refining slag and feeding the remainder material into the construction and fertiliser value chain; and to use nickel furnace slags for carbon sequestration. These projects illustrate the potential for circularity in mining to generate economic, social, and environmental gains simultaneously at scale.

Beyond the mine site, circularity also extends to Brazil’s cities and infrastructure, the so-called ‘urban mine’. As the country expands its renewable energy systems, vast quantities of copper and steel are being embedded in wind turbines, solar panels, and power grids. Designing these assets for reuse and recycling today will secure future supplies of critical materials and reduce dependence on imports. Building national recovery infrastructure, implementing traceability systems, and transforming Extended Producer Responsibility frameworks into true circularity enablers will be essential.

Circularity in mining can be a powerful central pillar of Brazil’s national industrial strategy, fully integrated into the National Circular Economy Strategy (ENEC), the Pro-Mineral Plan, and the Critical Mineral Mission. By embedding circularity across policy, industry, and finance, Brazil can capture more value from its mineral wealth, reduce environmental impact, and position itself as a global leader in sustainable resource management. Through decisive collaboration and innovation, Brazil can become the world’s reference point for circular solutions in mining and metals, transforming extraction into regeneration and leveraging its natural wealth to achieve long-term, inclusive prosperity.