Australian miners turn to Brazil’s critical minerals potential

Core Insights - Brazilian companies are rapidly developing new rare earth element (REE) projects to meet increasing global demand, with the Pela Ema project expected to supply 5% of global demand by 2027 [1][2] - Brazil holds the world's second-largest REE mineral reserves, with approximately 21 million tonnes, representing around 23% of global reserves [2] - The country is a leader in several critical minerals, including niobium (94% of global reserves), graphite (26%), and nickel (12%), and has become the fifth-largest lithium producer [3] Industry Developments - The ongoing COP30 summit in Belém aims to position Brazil as a sustainable partner in critical minerals, showcasing its resources to attract investment [4] - The geopolitical landscape has led to increased investment in Brazil's untapped REE reserves, as countries seek alternatives to Chinese sources [6] - Australian companies are shifting from competition to collaboration in Brazil's critical minerals sector, indicating a strategic investment approach [7] Project Highlights - Serra Verde's Pela Ema project in Goiás state is the first large-scale rare earth mine outside Asia, with an output projected between 4,800 and 6,500 tonnes of rare earth oxides [1] - Viridis Mining's Colossus project in Minas Gerais has received support from the French Government, aiming to begin production by 2028 [10] - Meteoric Resources is advancing its Caldeira project, focusing on a vertically integrated supply chain to reduce reliance on Chinese processing [11] Processing and Value Chain - Companies are moving beyond commodity production into processing, addressing a critical gap in global supply chains [13] - Brazilian Rare Earths plans to build a rare earths separation refinery in Bahia state, partnering with France's Carester for sustainable processing technology [14][16] - The Camaçari region is emerging as a hub for critical minerals processing, with potential for additional industries like magnet and battery manufacturing [15][17] Government Initiatives - The Brazilian Government is launching a new critical minerals plan to streamline licensing and attract foreign investment [20] - BNDES and FINEP have initiated a 5 billion reais ($938.11 million) program to support exploration, processing, and innovation in the critical minerals sector [21][22] - A dedicated critical minerals fund by BNDES is expected to mobilize around $200 million for exploration and mining projects [22] Strategic Alliances - The collaboration between Australian miners and Brazilian companies is transforming historical rivalries into new partnerships, enhancing Brazil's position in the global supply chain [23]