Luiz Inácio Lula da Silva, Brazil’s left-wing president, has just been re-elected following a closely fought contest against right-wing rival Flávio Bolsonaro. The result marks Lula’s fourth presidential election victory, having previously served as president from 2003 to 2010 and again from 2023 to the present.
These election results go against a growing trend across Latin America, with more countries, including Argentina, Chile, and Colombia, moving further to the right. Lula’s left-leaning politics are generally seen as more China-friendly.
As previously reported, Lula has consistently pushed for regulations to strengthen the country’s control over its mineral resources, while Flávio Bolsonaro has expressed more interest in aligning with the US drive for critical minerals.
Brazil holds the second-largest rare earth reserves globally, following China, and is the second-largest gold producer in South America, with iron ore and bauxite also dominant industries.
In August 2026, Lula flagged plans for a new national policy designed to treat strategic minerals as a matter of national sovereignty, with a focus on local value-addition before export.
The policy, made official on 16 September, came as the US imposed a 50% tariff on Brazilian imports.
Lula’s plan also includes mapping the country’s mineral wealth and establishing a national council on critical and strategic minerals.
Environmental impacts of Lula’s re-election
Lula’s victory is expected to have positive environmental impacts. Environmentalists have highlighted widespread deforestation and forest fires in the Amazon during the presidency of Jair Bolsonaro, Flávio’s father.
During his 2023–2026 term, Lula reversed some of Jair Bolsonaro’s policies associated with deforestation.
Brazil’s leadership is taking environmental issues seriously, with the supreme court recently suspending Belo Sun Mining’s (TSX:BSX) environmental permit for the Volta Grande Gold Project in the Amazon.
The country also established the Brazilian Forum for Responsible Gold in September 2025, confirming Brazil’s commitment to responsible gold mining, formalising artisanal and small-scale gold mining, improving traceability, and fighting against illegal mining and illicit financial flows.
During Lula’s 2023–2026 term, Petróleo Brasileiro (Petrobras), Brazil’s state-owned petroleum company, became more central to energy policy, with a broader focus on the fertiliser industry.
That push into fertiliser has benefited Aguia Resources’ (ASX:AGR), which in August 2026 received backing from a R$10 billion ($2.9 million) fertiliser incentive scheme. The National Fertiliser Production Incentive (Profert) aims to grow domestic Brazilian production and reduce the country’s dependence on imported fertiliser.
Lula’s victory is likely to reinforce Brazil’s push to exert greater control over its strategic mineral resources while balancing development with stronger environmental oversight.
For mining companies, the coming years could bring both new opportunities and heightened regulatory expectations as the country seeks to capture more value from its vast resource base and strengthen its role in global supply chains.
Write to Amy Rotman at Mining.com.au
Main image: EPA/Shutterstock
