Rare Earths: Brazil's entry as a new global supplier
Carlos Alexandre C. Freire
Engenheiro de Minas | Planejamento de Mina - Curto Prazo
The Rare Earths (ETR) comprise a total of 17 elements, 15 of which are the so-called lanthanides, as well as yttrium and scandium. These different types of minerals are classified into three subgroups, based on atomic weight: Light Rare Earths (LREE) and Heavy Rare Earths (HREE). China's policy adds a subgroup, Medium Rare Earths (MREE), in this case Samarium, Europium and Gadolinium.
Rare earths are used in components of high-tech devices and are associated with various disruptive technologies, providing the emergence of new services or innovative products. The unique magnetic, electrical, optical and chemical properties of ETRs have made them essential and practically irreplaceable.
The Chinese Dominion
China controls the global ETR industry and has established a dominant position in the entire value chain. China produces around 90% of the world's permanent magnet alloys. In 2018, the Asian country exported 53,000 tons of rare earth elements and imported 41,400 tons, as other countries have started to produce rare earth concentrate, but have not yet mastered the other stages of the production chain, such as the production/separation of oxides and the production of alloys (mainly the USA, at its Mountain Pass mine). Only Malaysia has a Lynas refining unit (whose concentrate comes from Australia) to meet almost all of Japan's demand.
Ores containing ETR are processed through a complex production chain, with China dominating all stages:
1) Ore concentrates (China: 75%);
2) Mixed oxide concentrates (China: 85%);
3) Separated oxides (China: 95%);
4) Metals, alloys and metal powders (China: 99%);
5) Magnets and other products (China: 85%), and
6) High-tech products.
The Geopolitics of Rare Earths and Brazil's strategic character
Brazil faces several challenges in becoming a rare earth powerhouse in the world. Issues such as the lack of investment in research and development, the complexity of the mining and refining process, the need for stricter environmental regulations and dependence on foreign technology are significant obstacles to overcome. In addition, it is crucial to ensure a sustainable and responsible approach to the exploitation of these resources, taking into account environmental and social impacts. Overcoming these challenges will require effective collaboration between government, industry and academia, as well as encouraging investment in innovation and technology, with a view to independence and competitiveness in the global rare earths market.
The geopolitics of rare earths involving the US, China and Europe has become a crucial topic as these actors seek to secure access to these essential minerals for cutting-edge technologies. China has historically dominated global production of rare earths, which has given it significant influence in global geopolitics. However, growing concern about China's dependence has led to renewed interest from other regions.
The United States has been striving to reduce its dependence on Chinese rare earth imports, due to the strategic and national security implications. In this regard, the US has sought partnerships with allies, such as European countries and Japan, to diversify sources of supply and strengthen its positions in the supply chain.
Europe is also paying attention to the issue of rare earths, as these minerals are crucial to its energy and digital transition. Initiatives such as the "European Rare Earth Alliance" aim to promote cooperation between European countries to guarantee access to rare earths and develop their own production and refining capacity.
In this context, Brazil has a potentially strategic role. With its extensive reserves of rare earths that are still little explored, the country could emerge as a reliable and diversified supplier on the global stage. By investing in sustainable extraction and refining technologies, the country can attract international investment and collaboration, thereby strengthening its diplomatic and economic relations with different regions.
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In addition, Brazil could play a mediating role between the interests of the United States, China and Europe, helping to balance the geopolitical dynamics surrounding rare earths. By adopting responsible and sustainable mining practices, our country can position itself as a leader in the ethical production of mineral resources, gaining international recognition and building lasting partnerships.
However, to take full advantage of this opportunity, Brazil needs to overcome internal challenges, such as investing in research and development, infrastructure and environmental regulations. With determination and strategy, Brazil can position itself as an important player in the geopolitics of rare earths, contributing to a more balanced distribution of the global supply of these essential minerals.
Brazil and the Main Projects
Along with Vietnam, Brazil has the second largest reserves of rare earths in the world, estimated at 22 million tons, according to the US Geological Survey. Production is around 2,000 tons a year. Exploration began in the 19th century on the coast between the north of Rio de Janeiro and the south of Bahia. Initially, the minerals were used as ballast for ships. Later they were used in gas lamps. Until the mid-1950s, Brazil, along with India, led the world market, but was eventually overtaken by producers such as South Africa, which modernized and boosted production.
Since 2011/12, Brazil has been the second largest holder of rare earth reserves (22 Mt) in the world, along with Vietnam (with deposits in the states of Minas Gerais, Bahia, Goiás and S?o Paulo). In 2023, the Minera??o Serra Verde project, which is developing an integrated mining and processing operation for rare earth elements ("ETR") in Mina?u (GO), began commissioning the first phase of operations. When the complex is fully operational, the company will produce a unique mineral concentrate containing a high-value combination of heavy and light magnetic ETRs, including neodymium (Nd), praseodymium (Pr), terbium (Tb) and dysprosium (Dy). All four of these ETRs are essential for the manufacture of permanent magnets for use in electric vehicle motors and wind turbine generators, for which demand is growing sharply.
CBMM (Cia.Brasileira de Minera??o e Metalurgia) also has a rare earths project at a very advanced stage at its mine in Araxá (MG), where it is already producing niobium. Minera??o Terras Raras has the Morro do Ferro project (Po?os de Caldas/MG) and CMOC (GO) and MINSUR (AM) are also evaluating projects and the potential of their resources and tailings for the production of ETRs. These projects, once implemented, could make Brazil a significant global producer in this segment.
In addition, Brazil is investing in the development of the production chain for rare earths, right up to the product stage (magnets, oxides, etc.), including various initiatives ranging from geological mapping and studies by the CPRM (Geological Service of Brazil) and action by the MME/ANM (Ministry of Mines and Energy/National Mining Agency).
Another project announced is that of Australian company Meteoric Resources NL, which will invest more than R$1 billion in a rare earth extraction project that includes 51 mining processes in the region of Po?os de Caldas, in the interior of Minas Gerais, with the expectation of generating 700 jobs. The announcement of the "Caldeira Project" was made by the state government, following the signing of a protocol of intentions. Production is expected to start between 24 and 36 months and the company expects to produce 400 million tons of ionic clay.
Aclara Resources reports that it has discovered a new heavy rare earth element (HREE) at the "Módulo Carina" ionic clays project, located in Goiás. The initial drilling campaign consisted of 1,693 meters of drilling in 236 holes to discover a new deposit of the heavy rare earth element, hosted in ionic clays. The mineralized area of Módulo Carina covers around 1,400 hectares, with potential for lateral expansion. Light rare earth elements (LREE) in 71.2% of the holes revealed desorbable dysprosium (Dy 203 D), terbium (Tb 407 D) at 18.1 ppm. In addition, oxides of neodymium and praseodymium (Nd 203 D and Pr 203 D) were added, respectively, with a total value of 123 ppm.
Alvo Minerals announces that it has obtained highly promising results from auger drilling at the Bluebush Project, which aims to search for rare earth elements, located in the northern half of the Serra Dourada Granite, host to the Serra Verde Ionic Clay deposit (Serra Verde). The project is located in the municipality of Palmeirópolis-TO. Rob Smakman, Managing Director of Alvo, said that "these results are an indication that Bluebush is looking more and more like another potential Serra Verde. We plan to focus on the areas with the highest scores from the highest value MREOs, as these are the most important aspect of all REE projects. There is fantastic potential at Boa Vista and we will now begin a more systematic approach to auger drilling, while we await further drilling results at the northern S?o Bento prospects"
One partnership announced was that of Rainbow Rare Earths, which signed a memorandum of understanding with The Mosaic Company to jointly develop a process flowchart and conduct a preliminary economic evaluation related to the extraction of rare earth elements from Mosaic's phosphogypsum pile in the Uberaba area (MG).
Brazil faces several challenges in becoming a rare earth powerhouse in the world. Issues such as the lack of investment in research and development, the complexity of the mining and refining process, the need for stricter environmental regulations and dependence on foreign technology are significant obstacles to overcome. In addition, it is crucial to ensure a sustainable and responsible approach to the exploitation of these resources, taking into account environmental and social impacts. Overcoming these challenges will require effective collaboration between government, industry and academia, as well as encouraging investment in innovation and technology, with a view to independence and competitiveness in the global rare earths market.
References
https://wordview.stratfor.com/article/geopolitics-rare-earth-elements
https://tegra.com.br/tecnologias-disruptivas/
https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-rare-earths.pdf
https://www.inthemine.com.br/site/geopolitica-das-terras-raras-artigo-na-integra/
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