Rare Earth Elements
Not so rare in Brazil
Goiás is at the centre of Brazil’s REE scene. Serra Verde is one of the few companies able to tap into an ionic-lay REE deposit. The company, whose backers Vision Blue and Energy and Minerals Group invested US$150 million in 2022, has entered production, making it the first scale operation to produce four critical magnetic REEs outside of Asia. They are optimistic that the demand for non Asian REEs will boom, due to the prevalence of high-value heavy and light REEs, primarily neodymium, praseodymium, terbium and dysprosium, crucial for battery production and for military and aerospace applications. According to Thras Moraitis, CEO of Serra Verde: “The transition to clean energy relies heavily on rare earths. This necessity extends beyond commercial applications to geopolitical and military uses, making rare earths critical in global energy strategies.”
Moraitis was positive about Serra Verde's interactions with the authorities, acknowledging that they are aware of Brazil’s opportunity to compete with Asian producers and become a partner of choice for Western, high-value manufacturers. “Europe, Canada and the US have provided substantial financial support to their critical minerals industries. Brazil should consider similar funding initiatives to help local producers compete globally,” he said.
Aclara Resources, a heavy rare earth-focused developer with projects in Chile and Brazil, is developing it's heavy rare earth, Carina Module project, also in Goiás. The company IPO in 2021 raised US$100 million, which it funneled into exploration in Brazil. A recent PEA for the Carina Module conducted by GE21 Consultoria Mineral outlined a project life of 17 years, processing 150 million t/y over this period, and a net present value (NPV) of US$1.2 billion. Francois Motte, CFO of Aclara Resources, said: “Our process is highly sustainable; unlike traditional mining, we avoid explosives, crushing, and milling, which reduces energy consumption and environmental impact. Our patented Circular Mineral Harvesting technology efficiently recovers rare earths from ionic clay with a minimal ecological footprint. The process uses ammonium sulfate, a common fertilizer, which is non-harmful when appropriately handled. We employ a water recycling system akin to desalination plants, achieving a 95% water recirculation rate. The mining operation generates no tailings and ensures the land is returned to its original state with revegetation.”
In addition to its patented technology, Aclara Resources is pursuing a vertical integration strategy. Motte said: “This integration allows us to control the entire production process, from raw material extraction to final product refinement, enhancing our market position.”
Brazilian Rare Earths (BRE), the ASX-listed developer of rare earths founded in 2021, recently raised US$80 million to develop highgrade ionic deposits in the Rocha da Rocha critical minerals province in Bahia state. The company has confirmed high-grade intercepts through its drilling campaign, placing it at the forefront of global REE projects. Bernardo Da Veiga, managing director and CEO of BRE, said: “During the drilling at Monte Alto, we hit a significant intercept: 14 m at 11% in saprolite. Ionic clays typically have grades between 0.1% and 0.3%, so we realized that this mineralization could not possibly be ionic clays. It turned out to be coarse grained liberated monazite in the saprolite.”
The high grades have convinced BRE that the company can commercialize its deposits with minimal impact on the region. da Veiga explained: “We only need to mine a small volume to produce the same amount of rare earths as lower-grade deposits, leading to lower environmental impact, reduced water and energy usage, and less dust and noise.”
BRE’s project could transform Brazil’s rare earths sector, but more needs to be done from the federal level. BRE's da Veiga commented: "Brazil needs to incentivize companies to add value domestically through political, tax and other policies that support the establishment of downstream operations. Brazil already has a large industrial base and a skilled workforce. These factors position Brazil well to become a critical minerals powerhouse.”
“Monte Alto has a small footprint and is relatively easy to operate compared to other rare earth projects globally. We commissioned a maiden diamond drilling campaign in late 2022, confirming significant high-grade intercepts at depth.”
Bernardo da Veiga, Managing Director and CEO, Brazilian Rare Earths
REE deposits are also attracting the attention of junior companies with interests in copper and other such commodities, including Alvo Minerals, an ASX-listed Australian junior focused on developing its Palma copper-zinc VMS project, but also venturing into REE through its Bluebush ionic clay rare earth project, adjacent to Serra Verde. Rob Smakman, CEO of Alvo Minerals, said: “Bluebush was too good to be overlooked. It is adjacent to our base in Tocantins and to Serra Verde, the only ionic clay project outside China that is in production.”
Another example is Appia Rare Earths & Uranium Corp, with its history of uranium and rare earth projects in northern Canada, that made the foray into Brazil in early 2023, entering an ionic absorption clay project near Iporá, again in Goiás. Stephen Burega, president of Appia Rare Earths & Uranium Corp, said: “Our experience in Brazil has been exceptional, showcasing supportive mechanisms and streamlined regulatory frameworks that make it a top global mining destination.”
Appia Rare Earths & Uranium Corp’s experience in Brazil points to an evolving regulatory approach to critical minerals exploration, with the federal government grasping the importance and potential of the country to significantly benefit from a diversification of supply chains away from Asia. According to Burega: “Brazil's rich mineral resources, including rare earths, position it to become a significant global player, provided technological advancements and local resources are effectively leveraged.”
“We have transitioned to reverse circulation drilling, allowing deeper penetration (up to 60 m), which led to a significant resource increase, now estimated at 298 million t—a 77% rise from the 2023 resource estimate.”
Francois Motte, CFO, Aclara Resources
Though Goiás' REE potential is well established, in neighbouring Minas Gerais, several rare earth projects have also attracted the attention of foreign investors. In Poços de Caldas, several Australian players are developing substantial REE projects. One such company is Meteoric Resources. The ASX-listed company has an ambitious goal: to be the next major producer of rare earths globally. In the past year, it signed a US$250 million MOU with the US Export-Import Bank, a sign of how Western institutions are taking a key interest in Brazilian critical mineral projects. Marcelo de Carvalho, Meteoric Resources' Brazil country manager, said: “We are focusing on three main areas: licensing, environmental studies and financing. We are investing nearly US$2 million per month to advance these aspects simultaneously.”
As part of this effort, in 2024, Meteoric Resources completed a scoping study, is working on its Caldeiras project pre-feasibility study and launched an environmental assessment, all intending to advance its Ionic Clay project. The scoping study conducted by Ausenco suggested Caldeiras will benefit from globally competitive OpEx, which Meteoric hopes will shield it from low prices. In addition, the company has already secured offtake agreements for 60% of its product. According to de Carvalho: “Additionally, we are engaged with the Brazilian government and the BNDES to attract investments into Brazil's rare earth downstream industry.”
Next door and also in Poços de Caldas, Viridis Mining and Minerals, an Australian ASX-listed junior with projects across Australia, Canada and Brazil, has decided to focus its attention on Minas Gerais, where it is developing the Colossus REE project. Rafael Moreno, CEO, joined the company at the beginning of 2024 with a mandate to take Colossus from exploration to production. According to Moreno, the Brazilian government, through the National Mining Agency, has been engaging with REE players across the board, exploring downstream opportunities: “Brazil is positioning itself as a key player in the energy transition, with investments from major companies like BYD, Stellantis and BMW setting up regional manufacturing facilities.”
“Offtake agreements are vital for our project's success. We signed our first offtake agreement with Neo Performance Materials six months ago for 3,000 t of TREO (Total Rare Earth Oxides).”
Marcelo de Carvalho, Executive Director, Meteoric Resources
Article header image courtesy of Serra Verde