Brazil’s rare earths attract new investments with progress in projects and strategic partnerships

Brazil’s high potential in rare earths has generated growing interest from international companies and investors. 

The last few weeks have been marked by new announcements involving fundraising, strategic partnerships, and advances in projects focused on critical minerals, amid the global search for alternatives to supply concentrated in China.

IMC Rare Earths Ltd. carried out an initial public offering of shares (IPO) in the United States, raising funds to invest in its rare earth project in Brazil.

The company raised US$20 million after selling 4 million common shares at a price of US$5 per share. With the transaction, the company’s shares began trading on the New York Stock Exchange, NYSE American.

The fundraising may increase, since the company granted the offering’s coordinators a 45-day option to purchase up to 600 thousand additional common shares at the initial offering price.

IMC Rare Earths is a mineral exploration and development company, still in the pre-operational phase, focused on rare earth elements in Brazil.

Its main asset is the Itarantim Project, an ionic adsorption clay deposit located in the states of Bahia and Minas Gerais, with an identified mineral resource of approximately 1.1 billion metric tons.

“This listing represents an important milestone for IMC, helping industry and governments meet the growing demand for rare earths by creating a reliable supply outside China,” said Frank Scolaro, founder, CEO, and president of IMC Rare Earths in a statement.

“Our deposit can help ensure the necessary supply for the advanced technology and defense sectors, which are growing rapidly and constantly evolving, in the Americas and in Europe. Brazil has the geology, we have the experience and operational track record, and NYSE American offers us a platform to increase the visibility of this important project and access capital for growth”, he added.

The company did not disclose the estimated investment (capex) for the development of the project.

Meteoric and POSCO

Also this week, the Australian mining company Meteoric Resources, owner of the rare earths project Caldeira in Brazil, announced the signing of a Strategic Partnership Memorandum with POSCO International Corporation (POSCO) to advance the development of the venture.

The Caldeira project has an estimated investment of US$450 million.

Through the partnership, POSCO will be able to acquire up to 30% of the rare earth material produced by the project over a period of up to seven years.

In addition, the South Korean company has committed to supporting Meteoric in the search for alternative financing, including access to Korean export credit agencies such as the Export-Import Bank of Korea (KEXIM) and the Korea Trade Insurance Corporation (K-SURE).

“This memorandum represents an important recognition of the scale, quality, and strategic importance of the Caldeira project, as well as providing a solid platform for us to advance in long-term supply contracts, financial support, and supply chain integration with one of the most important industrial groups in Korea”, said Stuart Gale, managing director of Meteoric, in a statement.

POSCO International has a joint venture with ReElement Technologies to build an integrated complex for the production of rare earths and permanent magnets, with a planned capacity to produce approximately 6 thousand tons per year of separated rare earth oxides.

The company has also been expanding its global rare earth value chain through strategic partnerships and investments aimed at strengthening downstream processing and supply security.

Other Initiatives 

Brazil has been attracting growing interest from investors in rare earth projects. With one of the world’s largest reserves of these minerals, the country is seen by investors and governments as an alternative to diversify the supply of strategic inputs.

BNamericas has mapped some of the most recent initiatives announced in the sector.

Harvest Minerals, a Brazilian fertilizer producer listed in London, is entering the Brazilian rare earths segment.

In mid-July, the company entered into a binding agreement to acquire 100% of Scanty Mineração Ltda., a wholly owned subsidiary of Union Star Metals Limited, taking on a portfolio of eight rare earth projects in ionic clays, distributed across 27 exploration areas in Brazil.

Meanwhile, the Canadian miner Resouro Strategic Metals is also seeking funds to speed up the development of its rare earth and titanium project in Brazil, which calls for an initial investment estimated at US$160 million.

As part of this effort, the company announced a private placement of up to 8 million common shares, with the goal of raising up to C$ 2 million (around US$ 1.4 million).

According to the company’s projections, the project should process around 500 thousand tons per year, with the mine’s initial useful life estimated at 20 years.

Investments 

According to projections by the Brazilian Mining Institute (Ibram), the rare earth segment is expected to receive US$ 2.4 billion in investments between 2026 and 2030, 10.4% above the projections for the period between 2025 and 2029.

The expected growth reflects the increase in global demand for critical minerals used in the manufacture of electric vehicles, wind turbines, electronic equipment, and defense technologies.

(The original version of this content was written in Portuguese)