Spotlight: Key Brazilian rare earths projects

As geopolitical pressure related to rare earths is growing, Brazilian projects are expected to attract investments of US$2.17bn in 2025-29, up 49% compared with 2024-28, according to mining association Ibram.

Some analysts believe that comments by US President Donald Trump to annex Greenland and push mining deals in Ukraine are related to rare earths, which are important minerals in the manufacture of high-tech applications, magnets, batteries and electric motors, among other products.

Although still minor in comparison to overall expected mining investment of US$70bn in the period, the rare earths segment registered the highest growth in the period, highlighting increasing interest by investors.

"Investments in rare earths have an important geopolitical element, as the world doesn't want to be overly dependent on China, which is currently the country with the largest reserves of rare earths in the world," José Ricardo Pisani, a mining partner at Brazilian investment house Prisma Capital, told BNamericas.

"This opens space for Brazil to enter the spotlight, as it has the second-largest reserves in the world."

Prisma Capital, which currently manages 22bn reais (US$3.8bn) in investments in various areas such as oil and gas, infrastructure and energy, is evaluating the acquisition of mining assets in the country.

"However, it is important to note that despite the large volume of reserves, the rare earths sector in Brazil is still underdeveloped. Currently, there is only one project under operation associated with rare earths in the country, located in Goiás state, owned by company Mineração Serra Verde, while other initiatives are still at very early stages," added Pisani.

"In any case, the major development frontiers for rare earths in Brazil are in the states of Goiás, Minas Gerais, and parts of Bahia state," he said.

The BNamericas projects database forecasting tool maps the most advanced initiatives, most of which are in Minas Gerais state and owned by Australian juniors.

Colossus (Viridis Mining)

After presenting the results of a scoping study, Australian exploration company Viridis Mining announced it would invest US$287mn in the Colossus project in Poços de Caldas, Minas Gerais state.

The company seeks to install a mining and production facility to process 5Mt/y of rare earths ore during a 20-year mine life.

"These results [of the scoping study] affirm Colossus as one of the most significant and financially robust rare earth development projects globally, underpinned by its world-class resource quality, high [magnet rare earth oxide] grades and unique metallurgical characteristics. Rare earths are critical for the global energy transition, defense applications and modern technology, yet assessing the true value of a rare earth project remains complex," CEO Rafael Moreno said in a statement.

The company added that it is in talks to arrange financing and offtake agreements for the project. Details can be seen here.

Araxá (St. George Mining)

Australia-listed exploration firm St. George Mining is developing the Araxá niobium-rare earths project, also in Minas Gerais.

Earlier this month, St. George Mining, which acquired the project last year from Itafos Araxá Mineração e Fertilizantes, announced an agreement to receive Aus$8mn (US$5mn) from China's Shandong Xinhai Mining Technology & Equipment, to be paid into a private equity fund. The fund was created for the purpose of raising capital for Araxá and is planned to involve Aus$20mn, the company said in a statement.

Another Chinese player, steel company Fangda, secured the purchase of 20% of St. George's future production. In addition, Xinhai will provide, among other things, consultancy on metallurgical testing and project construction, and a proposal for a fixed-price engineering, procurement and construction contract, for which it will also help secure financing.

In a recent interview with BNamericas, St. George Mining executive chairman John Prineas said the firm plans to invest US$150-300mn in the Araxá project.

Caldeira (Meteoric Resources)

Australian junior Meteoric Resources is advancing exploration and development work at the Caldeira project in Minas Gerais state, close to the city of Poços de Caldas.

According to a recent company presentation, capital costs for the base case 5Mt/y project are estimated at US$297mn.

The firm underlined that rare earths projects are "gathering significant government support in the form of debt and grant financing."

Carina Module (Aclara Resources)

Canada-listed Aclara Resources announced in December that it raised US$25mn via a private placement of shares as part of its efforts to fund its Carina project in Goiás state.

Under the operation, Chilean mining company CAP, UK-based Hochschild Mining and investment firm New Hartsdale Capital, indirectly owned and controlled by Eduardo Hochschild, chairman of Aclara, subscribed to shares in Aclara.

In January, Aclara named Murilo Nagato as country manager of its wholly owned Brazilian subsidiary, Aclara Resources Mineracao.

The Carina project aims to produce magnetic rare earths vital for energy transition technologies. With a 22-year mine life, the project is expected to deliver average annual output of 191t of dysprosium and terbium and 1,350t of neodymium and praseodymium, which are essential to produce high-performance magnets used in electric vehicles and renewable energy technologies.

The Carina project requires initial investment of US$599mn. Currently, it is in the prefeasibility stage, with Hatch serving as the engineering consultant. The project is set to start operations in 2028, the company said in a January statement.

Terra Brasil

Mining company Terra Brasil has hired Genial Investimentos as its exclusive financial adviser to seek investors to extract phosphate, potassium and rare earths from a deposit in Presidente Olegário, in the northwest of Minas Gerais state, local media reported.

Planned investment is 2.4bn reais.