Brazilian Rare Earths plans $969 million investment in rare earth project, targeting production start in 2031

en.Wedoany.com Reported - Brazilian Rare Earths has completed the scoping study for its Rocha da Rocha rare earth project in Brazil. The initial capital expenditure required to achieve first rare earth oxide production is estimated at $969 million, including a 30% capital contingency, dedicated reagent production facilities, and a uranium product circuit. The company still needs to secure the corresponding development funding, and no complete financing plan has been finalized yet.

Rocha da Rocha is planned to adopt a "mine-site pre-treatment plus centralized processing" development model. The Monte Alto and Sulista mine areas will each carry out mining and beneficiation, with material subsequently transported to a centralized processing facility for leaching, separation, and product finishing. Monte Alto is planned to use dry crushing, screening, and sensor-based sorting, while Sulista will employ flotation and gravity concentration processes.

The scoping study estimates that the project can produce an average of 6,351 tonnes of neodymium-praseodymium oxide and 2,502 tonnes of heavy rare earth concentrate per year in the first five years after commissioning, with the latter containing elements such as dysprosium, terbium, yttrium, samarium, and gadolinium. Average annual production over the full mine life is estimated at 5,276 tonnes of neodymium-praseodymium oxide and 2,253 tonnes of heavy rare earth concentrate. The project also has the potential to produce by-products such as uranium, scandium, niobium, and tantalum, but the current economic assessment does not include revenue from uranium products.

The study incorporates the ultra-high-grade ore body at Monte Alto with a resource of 3.4 million tonnes at an average rare earth oxide grade of 11.26%; Sulista has a resource of approximately 8.49 million tonnes at an average grade of 2.29%. The production plan is based approximately 44% on indicated resources and the remaining 56% on inferred resources with lower geological confidence, which will require further infill drilling and technical studies to improve resource reliability.

Based on the long-term price and technical assumptions adopted by Brazilian Rare Earths, the project's after-tax net present value is estimated at $7.9 billion, with an internal rate of return of 89% and a payback period of approximately 1.1 years. These figures are derived from an early-stage scoping study with an accuracy of plus or minus 40% and do not constitute a reserve estimate or a basis for final investment decisions. Actual construction costs, production volumes, and returns will need to be determined through subsequent studies.

The company is also evaluating a plan to produce rare earth concentrate from Monte Alto ahead of schedule, with estimated capital of $91 million required to achieve first concentrate production. This plan focuses on mining, crushing, ore sorting, and off-site transport, aiming to establish interim product supply before the centralized separation facility is completed. Brazilian Rare Earths has obtained trial mining permits and export permits for high-grade concentrate.

The project's pre-feasibility study was initiated in 2026, with plans to complete it and submit the environmental impact assessment in 2027; the definitive feasibility study is expected to commence in 2028, with the final investment decision and construction schedule targeted for 2029. Monte Alto concentrate could be sold as early as 2030, with neodymium-praseodymium oxide and heavy rare earth products planned to enter the sales phase in 2031.