Lynas outlines Brazilian rare earth oxide separation plant plan

what happened

Lynas Rare Earths has submitted a proposal for a rare earth oxide separation facility in Brazil’s Minas Gerais state. Mining.com reported the development on Monday, in a report carried by Seeking Alpha. Brazilian officials are considering support for a project that could become one of the biggest facilities of its kind outside China.

The plan forms part of Lynas’ wider expansion in Brazil following its recent $672M transaction involving Meteoric Resources. The company’s Caldeira project contains one of the largest known ionic-clay rare earth deposits outside China.

Mines and Energy Minister Alexandre Silveira told Mining.com that a plant in the Poços de Caldas area could help Brazil move further along the value chain, add value to its output and reduce its role as a raw-material exporter. Officials also regard the region as a possible processing hub for several nearby ionic-adsorption clay projects, meaning the facility could process material beyond Caldeira. Negotiations are reportedly more advanced than Lynas’ public comments indicate, with a preliminary understanding on establishing separation capacity in Brazil.

why it matters

The proposal could raise Brazil’s importance in rare earth processing and broaden the potential strategic relevance of Lynas and Meteoric Resources assets outside China.

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