Australia-based Meteoric Resources hopes to be the next mining company to enter the rare earths market in Brazil, which is beginning to develop these critical minerals and could help diversify supply chains away from China. Brazil has the world's second-largest rare earths reserves — 21mn metric tonnes (t), according to the US Geological Survey — but only one commercial mine.
Meteoric's Caldeira project in southern Minas Gerais state contains an estimated 1.5bn t of rare earth oxide, with a grade of 2,359ppm. Meteoric's chief executive Stuart Gale spoke to Argus about the project's progress and opportunities for Brazil to develop a rare earths production chain. Edited highlights follow.
Meteoric recently completed its pre-feasibility study (PFS) and hopes to get its preliminary license by November. What are the steps to start of production?
The process is moving along in line with our expectations. We should have the installation license around the middle of 2026.
From there we look at funding solutions and we enter into a final investment decision some time just after the middle of 2026. If it's an 18-to-24-month built, then [we are operational] two years later, in 2028.
The PFS gives us a project that will cost around $440mn to construct, which in terms of capital intensity is relatively low from a rare earths perspective.
We've also got a really good understanding around how the operations will perform once the plant is up and running. We're certainly in the very low-cost category.
You say Caldeira has low ongoing operating costs. How does it compare to existing projects?
What's important here is that the basket of rare earths we have is very topical at the moment. It's about 30pc neodymium-praseodymium, the light magnetic rare earths, and it's a little over 1pc dysprosium-terbium (DyTb).
The price of heavy rare earths is very high, because they are the rare earths that are in short supply globally. We'll produce about 13,000 t/yr of total rare earth oxides, [of which] around 150 t/yr is of DyTb.
Meteoric has signed offtake agreements with producers Ucore and Neo Performance Materials. Are you in conversation with other potential offtakers?
Yes, we are [in conversation] with several other potential offtakers. We're talking to all parties. It's important to keep those conversations open.
You've also signed an agreement with Metallium, formerly MTM Critical Metals, to process mixed rare earth carbonate from Caldeira. What are the opportunities and challenges for developing downstream processing in Brazil?
The important point is, you've got to have the molecules. If you can't access those and deliver those efficiently, you don't have anything else. So step one is to deliver our project so that we can produce a mixed rare earth carbonate.
Secondly, Brazil has everything that is needed for further downstream processing. Its location is fantastic relative to other markets. It's got its own industry, a huge economy and all of the things to help on the downstream production. It's got cheap renewable energy, water, an [experienced] workforce that's at hand and great infrastructure.
Brazil's government is providing incentives to rare earths mining, with Meteoric included in BNDES development bank's R5bn ($913mn) strategic minerals funding program. Are there incentives from other actors, in Brazil or elsewhere?
We've been talking to other development banks and export credit agencies, who are all very positive. So we're maintaining contacts, especially with the US, Australia, France and Germany, to look at how we might be able to secure funding options, whether that's a grant, a loan or equity.
