Minas Gerais state looking to develop rare earth projects with Australians

Minas Gerais, a Brazilian that hosts significant iron ore operations and also has a series of lithium projects underway, is planning to boost activity in the rare earth segment too. 

The state secretariat for economic development, the state promotion and investment agency (Invest Minas), and the Minas Gerais state industrial federation (Fiemg) signed a cooperation agreement with three Australian companies this week in Perth during a state government mission to Australia.

The companies Viridis Mining and Minerals, Viridion Rare Earth Technologies, and Meteoric Caldeira Mineração signed an MOU "to boost research, development, and innovation in the pilot production of rare earth magnets at the Senai unit for magnets and rare earths (CIT Senai ITR) in Lagoa Santa, in the metropolitan region of Belo Horizonte," the state government said in a release. 

Fiemg acquired the former rare earth magnet production laboratory (LABFAB ITR) on December 21, 2023, from Companhia de Desenvolvimento de Minas Gerais (Codemge). It is the first rare earth magnet laboratory in South America, creating a supply chain that is almost unique in the world, outside of China.

“Minas Gerais is consolidating itself in this energy transition process. We have lithium, rare earths and other critical metals, making the state a global reference in this new economy," said Fernando Passalio, secretary of state for economic development.

“This partnership strengthens Minas Gerais as a strategic hub in the rare earth sector, creating an innovative and sustainable ecosystem capable of attracting new investments and generating high-skilled job opportunities in the state,” said Invest Minas director of investment attraction, Ronaldo Alexandre Barquette.

Rare earth elements (REEs) are 17 metals, including the lanthanides, scandium and yttrium. Known for their magnetic and luminescent properties, they are essential for various modern technologies such as electronics, powerful magnets for wind turbines, and electric vehicle batteries. Though relatively abundant, REEs are hard to mine, making their supply limited and concentrated in a few regions.