The lush forests of the Amazon are under threat once again, this time from a mining rush for critical minerals. In the southeastern state of Pará, Brazil, the Rio Novo settlement is at the heart of this conflict. Battered motorcycles carrying organic food for sale in the city pass trucks loaded with minerals destined for export, highlighting the clash between traditional agriculture and industrial mining.
Parauapebas, known as Brazil’s “mining capital,” is home to the largest landless encampment in Brazil, Terra e Liberdade, along with the largest open-pit iron ore mine in the world. This region has a history of land conflicts, including the tragic Eldorado dos Carajás massacre in 1996, where 21 people lost their lives during a protest.
Now, a new front of dispute has emerged as mining companies target land in established agrarian reform settlements to extract essential minerals like copper, manganese, and nickel. These minerals are crucial for industries like high-tech and defense, used in equipment ranging from electric cars to military jets.
A recent study conducted by Repórter Brasil in collaboration with Mongabay revealed 676 mining processes for these critical minerals in Carajás since 1969, with 166 of them filed in the last five years alone. Of these, 43% are linked to 82 agrarian reform settlements in southeastern Pará, impacting around 14,852 families of small-scale farmers.
The Energy Transition Observatory, a joint project by Repórter Brasil, INESC, and PoEMAS, monitors the impacts of renewable energy projects on conservation units, traditional communities, and agrarian reform settlements. By analyzing data from the National Mining Agency, the project identified the overlap between mining applications and rural settlements, highlighting the potential threats to these communities.
Vale, Brazil’s largest mining company, is leading the search for critical minerals in Carajás, with 201 applications for copper, nickel, and manganese. Around 40% of these applications overlap with rural settlements, raising concerns about the displacement of farmers and environmental degradation.
Last year, Vale launched the Novo Carajás Program to expand copper and high-grade iron production, signaling further mining activities in the region. As the mining rush intensifies in the Amazon, the delicate balance between economic development and environmental conservation hangs in the balance. The fate of the Rio Novo settlement and other rural communities in Pará remains uncertain as they face the looming threat of industrial mining encroaching on their lands. The projected investment of 70 billion reais ($13.5 billion) by 2030 in mining activities is set to have a significant impact on the world, according to Gustavo Pimenta, CEO of Vale. He likened the importance of critical minerals in the future to that of oil in the past century. However, concerns have been raised about the social and environmental impacts of these mining projects.
Vale, a Brazilian multinational mining company, has been facing scrutiny over its operations in the Serra dos Carajás region. Mineração Onça Puma, a subsidiary focused on nickel mining, is currently facing a lawsuit from the Federal Public Prosecutor’s Office for suspected contamination of Indigenous people in the Xikrin do Cateté Indigenous Territory by heavy metals. A study by the Federal University of Pará found that 98.5% of Xikrin Indigenous people were contaminated, leading to a request from the MPF to freeze 60 million reais from Vale for environmental remediation actions.
Vale has denied any connection between its activities and the contamination of the Cateté River. However, concerns have also been raised about Vale’s land acquisitions and their impact on land reform and social movements in the region. Additionally, the Tucumã Settlement Project, where mining activities are taking place, has raised fears among settlers about potential environmental impacts on the territory.
The Tucumã Settlement Project is home to both Vale’s nickel operations and Ero Brasil’s copper mining venture. Residents have expressed concerns about pollution in the Carapanãzinho River, with reports of dead fish causing apprehension in the community. While mining companies have highlighted their sustainability efforts, residents have reported issues such as dust, structural damage to houses, water scarcity, and fish mortality due to the mining operations.
Despite initial hopes for job opportunities and infrastructure development, the accumulated impacts of mining activities have made life in the region increasingly challenging for residents. A relocation plan for the affected community is being discussed between Ero Brasil and the Tucumã City Hall, including compensation for properties. As mining activities continue to expand in the region, the social and environmental impacts remain a pressing concern for local communities and environmental organizations. However, the wealth generated by mining activities has not translated into significant improvements in the quality of life for the local population. The municipality still struggles with high levels of poverty, lack of basic infrastructure, and environmental degradation.
The promise of relocation for the settlers in the Tucumã Settlement Project, who are facing the impacts of mining activities encroaching on their land, is a glimmer of hope in an otherwise uncertain future. The settlers have expressed their concerns about the delay in the relocation plan, fearing that another two summers in their current location will bring even more suffering.
Ero Brasil and the Tucumã City Hall have been questioned about the relocation plan and the collection of fish and water samples, but have not provided any responses. Similarly, INCRA, the federal agency responsible for agrarian reform, has not responded to inquiries about the relocation of the settlers.
The relaxation of mining regulations during the Bolsonaro government has paved the way for mineral extraction in agrarian reform areas, including the Tucumã Settlement Project. The new norm allows mining companies to operate in settlement areas without consulting the rural workers who live there.
The lack of consultation with the affected communities is a major concern, as it undermines the rights of the settlers and exposes them to the negative impacts of mining activities. The regulation does provide for compensation and support for affected families, but without meaningful input from the communities themselves.
The ongoing mining activities in the region, including in agrarian reform areas, highlight the challenges faced by vulnerable populations in the face of powerful mining interests. The influence of the mining industry in government decision-making is evident, as regulations that prioritize mining over the rights of local communities remain in place.
As Brazil moves towards the energy transition and the demand for critical minerals increases, the risk of environmental degradation and social conflict in areas like Carajás and the Amazon grows. The region is at risk of becoming a “sacrifice zone” for mineral extraction, as regulations are relaxed and communities are left vulnerable to the impacts of mining.
The impoverished population of Parauapebas, one of the top collectors of mining tax in the country, continues to struggle with poverty and lack of basic infrastructure. Despite the wealth generated by mining activities, the local population has not seen significant improvements in their quality of life.
The ongoing conflicts between mining companies, government agencies, and local communities underscore the need for greater transparency, accountability, and respect for the rights of vulnerable populations. The promise of relocation for the settlers in the Tucumã Settlement Project is a small step towards addressing the injustices faced by those affected by mining activities in the region. Despite the fall in prices of its main mineral in recent years, Parauapebas still maintains its ranking among the 300 richest cities in Brazil in terms of per capita GDP, according to official data. However, the prosperity of the city is not evenly distributed among its population.
In 2023, despite the municipality collecting a record 2.4 billion reais ($464 million) in CFEM, a significant portion of the population is struggling. A total of 40,367 families in the city, out of a population of 268,000 people, were registered in Brazil’s low-income family registry, which allows them to access social programs. Among these families, 14,402 were classified as living in extreme poverty, while 7,223 were considered to be in poverty, as reported by Territories in Network, an initiative of the Vale Foundation.
The disparity in wealth distribution became evident in August 2025 when members of Brazil’s Landless Rural Workers Movement (MST) staged a protest in front of the city hall. They demanded better conditions for rural education and repairs to a secondary road affected by mining activities. Valbiane Thaís Pantoja da Gama, an educator and MST representative residing in the Terra e Liberdade encampment, expressed her concerns about the lack of public policies and benefits for the population despite the city’s wealth. She highlighted the irony of a city often referred to as the “mining capital” being plagued by poverty and inadequate services for its residents.
The situation in Parauapebas underscores the complex relationship between economic prosperity and social inequality. While the city continues to thrive economically, there is a pressing need to address the challenges faced by its marginalized communities. Collaborative efforts from government, private sector, and civil society organizations are essential to ensure that the benefits of economic growth are shared equitably among all residents.
Diego Junqueira from Repórter Brasil contributed to the editing and data analysis of this report. The Energy Transition Observatory project, supported by INESC, Ford Foundation, and the Pulitzer Center, aims to shed light on the intersection of energy, economy, and social justice in Brazil. The world is constantly changing and evolving, and with it, so is the way we live our lives. In today’s fast-paced society, it can be easy to get caught up in the hustle and bustle of everyday life. However, taking a step back and reevaluating our priorities can have a profound impact on our overall well-being.
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