Brazilian Rare Earths has released a new scoping study for its Rocha da Rocha project in Brazil.
The study highlights strong economics and a potential low-cost source of rare earths outside China. The Monte Alto deposit serves as the project’s main development asset.
Topic Snapshot
- Monte Alto averages 11.3% total rare earth oxides.
- The project could produce 5,276 tonnes of NdPr oxide yearly.
- It could also produce 2,253 tonnes of heavy rare earth concentrate.
- The study estimates an after-tax NPV of $7.9-billion.
- The project has an estimated 89% after-tax IRR.
- Benchmark places it at $21/kg of NdPr-equivalent.
Monte Alto Anchors the Rocha da Rocha Project
Brazilian Rare Earths identified Monte Alto in February 2024.
The deposit is now the anchor of the wider Rocha da Rocha critical minerals province.
The company believes the region could become a major new source of global rare earth supply.
Monte Alto contains both primary and residual mineralisation with an average grade of 11.3% total rare earth oxides.
High Grades Could Lower Development Costs
The high grade gives Monte Alto a major economic advantage.
Higher grades can reduce the amount of material that needs to be mined and processed.
Brazilian Rare Earths says the deposit could support a smaller mining footprint.
It also expects lower processing intensity compared with lower-grade projects.
Strong Economics From the Scoping Study
The study reports strong financial results for the proposed Monte Alto operation.
Key figures include:
- After-tax NPV: $7.9-billion
- After-tax IRR: 89%
- Payback period: 1.1 years
- Average annual earnings: about $1.37-billion
These figures highlight the project’s potential under the study assumptions.
Project Could Become a Major Heavy Rare Earth Supplier
The proposed operation could produce significant quantities of NdPr oxide and heavy rare earth products.
Life-of-mine average production could reach:
- 5,276 tonnes per year of NdPr oxide
- 2,253 tonnes per year of heavy rare earth concentrate
- About 247 tonnes per year of dysprosium and terbium
- About 989 tonnes per year of yttrium
The output would give the project exposure to rare earths facing supply concerns.
Rocha da Rocha Targets Low Operating Costs
The study places Rocha da Rocha at $21/kg of NdPr-equivalent.
According to the company, this makes it the lowest-cost non-Chinese rare earth project.
It also ranks as the second-lowest-cost project globally on the Benchmark Mineral Intelligence rare earth cost curve.
The estimate excludes potential future credits from several co-products.
Development Plan Focuses on Rare Earth Products
The initial development strategy is designed around two main products.
These are separated NdPr oxide and a heavy rare earth-rich concentrate.
The concentrate would contain valuable amounts of:
- Dysprosium
- Terbium
- Yttrium
- Gadolinium
This product mix gives the project exposure to heavy rare earth supply shortages.
Other Minerals Could Add Future Value
The project also contains several other potentially valuable minerals.
Uranium is being advanced as a strategic co-product.
The company is also studying future opportunities involving scandium, niobium and tantalum.
However, Brazilian Rare Earths says these minerals are not needed for the initial investment case.
Mine Design Uses a Hub-and-Spoke Model
Monte Alto is planned as a small-footprint mining operation.
The mine would use:
- Dry crushing
- Screening
- Sensor-based ore sorting
No chemical processing would take place at the mine site.
Upgraded ore would then move to the planned Camaçari refinery hub.
Camaçari Hub Could Simplify Processing
The planned refinery is located within an established industrial complex.
The site has access to infrastructure, utilities, reagents and industrial services.
It also provides logistics and access to skilled workers.
This setup allows more complex hydrometallurgical and separation work to take place away from the mine.
Carester Strengthens the Development Path
Brazilian Rare Earths has a 10-year binding offtake agreement with French rare earth processor Carester.
The agreement also covers engineering and technical services.
Carester’s downstream work supports the planned production of high-purity NdPr oxide.
It will also support the heavy rare earth-rich concentrate.
Global Rare Earth Supply Risks Support the Strategy
The rare earth market is facing major supply chain changes.
China has introduced restrictions affecting some heavy rare earths.
Global supply chains are also becoming more fragmented.
At the same time, demand is growing from electric vehicles, defence systems and advanced technologies.
The company also points to potential demand from humanoid robotics.
Project Strategy Targets Market Resilience
Brazilian Rare Earths says the project is designed to remain competitive across different market conditions.
Its key advantages include:
- High-grade mineralisation
- Low unit costs
- Capital efficiency
- Strategic product exposure
- A simplified hub-and-spoke model
These factors could help Rocha da Rocha compete in a changing rare earth market.
Closing
The new Rocha da Rocha scoping study highlights strong potential at Brazilian Rare Earths’ Monte Alto deposit.
The project combines high grades with low projected costs and significant NdPr and heavy rare earth production.
Brazilian Rare Earths is now advancing the project as a potential low-cost Western source of separated rare earth products.
