Brazilian Rare Earths lands key pilot plant permit

Gina Rinehart-backed Brazilian Rare Earths was one of the ASX’s top performers on Wednesday after passing an important permitting milestone for a planned pilot plant and lab facility in Brazil’s Bahia state.  

The developer said Brazil’s National Authority on Nuclear Safety had issued the final regulatory permit for the rare earth beneficiation and hydrometallurgy plants, meaning BRE is now fully permitted to build and operate the facilities.  

Operations are slated to begin around mid-2026.  

“The rare earth pilot plant will optimise beneficiation and hydrometallurgy processes for BRE’s high-grade and ultra-high-grade rare earths mineralisation, confirm technical parameters, and support downstream process development ahead of potential future industrial-scale operations,” BRE reported to the ASX.  

Managing director Bernardo da Veiga said the Camacari region of Bahia state was a deliberate choice of location for the plants given its coordinated permitting, “world-class” infrastructure, and skilled workforce.  

BRE has already completed some encouraging metallurgical test work in collaboration with the Australian Nuclear Science and Technology Organisation, and it announced in June it had produced a mixed rare earth carbonate and a uranium co-product from its Monte Alto project.  

The monazite sand deposit at Monte Alto has inferred resources of 25.2 million tonnes at 1% total rare earth oxides, including a higher-grade zone of 4.1Mt at 3.2% TREO.  

BRE is working to update the resource and complete a scoping study. 

The new resource and study were expected before the end of June this year but are yet to be published.  

BRE maintained that it was well-funded for its planned exploration and feasibility work programs through 2026, with A$67.3 million in cash at the end of June.  

The company counts Rinehart’s Hancock Prospecting as a 6.4% shareholder.  

Shares in BRE were up 16% to $2.85 this afternoon, capitalising the stock at $324 million. It has traded between $1.56 and $3.10 over the past year.