Meteoric ups resource estimate for Brazil rare earths project

Australian junior Meteoric Resources increased the mineral resources estimate for its Caldeira rare earths project in Brazil's Minas Gerais state.

"The Caldeira Global MRE increases by 50% to 1.1Bt at 2,413ppm total rare earth oxides at a 1,000ppm cut-off, including 559ppm magnetic rare earth oxides," the company said in a statement.

According to the BNamericas database, capex for the project is estimated at US$403mn.

Although the rare earths segment is generating growing interest among investors across the globe, Meteoric admits there are challenges in raising capital in Brazil, forcing it to look for other options.

"If we can't secure financing in Brazil, we will have to finance abroad, and the guarantee will be the offtake, sending the production to other countries," Marcelo de Carvalho, the company's chief geologist, said in an interview for Bloomberg News.

Last year, Meteoric signed a memorandum of understanding for an offtake agreement with Canadian industrial materials firm Neo Performance Materials for 3,000t/y of rare earth oxides from Caldeira.

Meteoric expects to obtain a construction permit for Caldeira by Q4 and to start production of mixed rare earth carbonate during the second half of 2027.

Brazilian rare earths projects are expected to attract investments of US$2.17bn in 2025-29, up 49% compared with the 2024-28 projection, according to mining association Ibram.

Most of the projects planned are owned by junior firms listed in Australia and Canada. Currently, the Brazilian government, mainly through development bank BNDES, is engaged in finding options to boost local financing for early-stage mining projects.