From passive participation to proactive strategy: global mining governance is accelerating its restructuring, highlighting Latin America's critical mineral status.

Introduction: The Historic Transformation of Government Roles

For a long time, the mining sector has been dominated by private enterprises, with governments primarily acting as regulators and tax collectors. However, the global energy transition and geopolitical competition are fundamentally reshaping this landscape: critical minerals (lithium, cobalt, rare earths, copper, etc.) are regarded as strategic assets for economic security and national defense. Governments worldwide are shifting from "bystanders" to "strategic planners," deeply intervening in the entire mining value chain through direct investment, establishing state-owned companies, signing bilateral agreements, and adjusting tax policies.

Recent moves by the United States, India, the Democratic Republic of Congo, Kazakhstan, and others mark the acceleration of this global mining governance transformation. For Latin America—a region holding approximately 60% of the world's lithium reserves, the largest copper production, and abundant rare earth resources—this trend presents both an opportunity and a challenge.

US Strategy in Latin America: From Free Trade to Supply Chain Alliances

The United States has been the most aggressive in the field of critical minerals. According to reference materials, since January 2025, the US has invested over $1 billion in Latin America's critical mineral sector, providing equity, loans, and structured offtake agreements through institutions such as the US International Development Finance Corporation (DFC) and the Inter-American Development Bank, directly channeling mineral flows into US supply chains.

Chile has become a key pivot of this strategy. As the world's largest copper producer and second-largest lithium producer, Chile signed a joint declaration with the US to initiate formal negotiations on rare earths and critical minerals. In terms of copper projects, several projects in Chile totaling over $7 billion in investment are nearing production, with copper demand surging due to renewable energy, power grids, and electrification. US involvement aims to reduce dependence on China's rare earth processing (which accounts for over 90% of global capacity) and secure raw materials for electric vehicles, semiconductors, and defense.

Additionally, the US has made significant moves in Brazil and Argentina: investing $465 million (equity) in Brazil's Serra Verde rare earth project, and providing a $100 million loan (via the Inter-American Development Bank) for a $2.5 billion lithium project in Argentina. Notably, despite increased US investment, Latin American countries have not cut ties with China—China still dominates the processing stage, and Latin American governments tend to adopt a "multi-directional balancing" strategy.

India Looks East: Seeking Lithium Resources in Argentina

India launched the National Critical Mineral Mission (NCMM) in 2025, aiming to build self-sufficient supply chains. India's state-owned company KABIL has signed an agreement with CAMYEN SE, the state-owned company of Argentina's Catamarca province, to explore lithium resources over an area of 15,703 hectares. Additionally, India is evaluating acquisitions of cobalt and lithium projects in Australia. This move reflects concerns among emerging Asian economies about their dependence on critical mineral imports, as well as a willingness to gain direct control over resources in source countries through sovereign funds and state-owned enterprises.

Escalation of Resource Nationalism in AfricaThe change in the role of African countries is more direct. The Democratic Republic of the Congo has classified lithium and cobalt as strategic minerals, raising royalties from 3.5% to 10% of gross revenue, while also including rare earth elements such as uranium, tungsten, niobium, and tantalum in the high-tax category. This "ad valorem" tax model imposes costs regardless of corporate profitability, essentially levying higher resource rents. Ghana has adjusted its gold tax rate to a sliding scale of up to 12%, while Angola is expanding state control by managing oil revenues. This trend indicates that resource-rich African countries are attempting to capture a larger share of the critical mineral boom, but it may increase uncertainty for investors.- From Suppliers to Partners: Latin American countries are no longer passively accepting investment; instead, they are enhancing their bargaining power through taxation, local processing requirements, and state-owned shares, gradually embedding themselves in the mid-to-upper tiers of the global value chain. - The Main Battleground of US-China Competition: The United States is expanding its influence through the DFC and ally strategies, while China maintains control via infrastructure financing and processing technology. Latin American countries may leverage the competition to secure better terms. - Rising Resource Nationalism: Following the example of the Democratic Republic of Congo raising tax rates, some Latin American countries may follow suit, increasing regulatory risks for mining investments. - Downstream Integration Opportunities: If Latin America can attract lithium processing, copper smelting, and rare earth separation industries, it could shift from simply exporting raw materials to creating higher-value-added employment. - Digital and Green Transformation Drivers: Digitalization of mining (automation, remote operations) and the use of clean energy (green electricity, electric mining equipment) may become new advantages to attract investment.