Brazilian Critical Minerals (ASX:BCM) has executed a binding agreement to acquire a 90% interest in Sais Nordeste Indústria e Comércio, located in Feira de Santana, Bahia.
The plant, which has been under care and maintenance since February 2026, will secure domestic reagent supply for BCM’s Ema Rare Earth Project.
The transaction establishes local production of magnesium sulphate, the principal leaching reagent proposed for Ema’s in situ recovery (ISR) process. BCM says this is ‘directly linked’ to its ability to recover rare earth elements from the ionic clay adsorption mineralisation, which produces mixed rare earth carbonate (MREC).
Initial production capacity is expected to supply approximately 50% of Ema’s requirements, with potential to scale to over 100%.
Managing Director Andrew Reid says securing domestic production will materially reduce Ema’s exposure to Chinese reagent supply chains.
“Magnesium sulphate is the principal leaching reagent proposed for our ISR success story,” Reid says.
“Securing an established Brazilian production platform for this critical reagent gives BCM the opportunity to build greater control and resilience into the Ema supply chain and materially reduce our exposure to third-party reagent supply.
“We view this as a strategic upstream investment that is at least as important to Ema as downstream integration. Before we can supply the emerging rare earth separation and refining industry outside China, we must first ensure that Ema can reliably produce MREC.
“Security of the principal ISR reagent is fundamental to achieving that objective.”
BCM intends to acquire the stake via its wholly owned subsidiary, Mineração BBX do Brasil, for a nominal cash consideration of R$1 ($0.27) plus the assumption of identified taxation liabilities.
The company will fund and oversee the restructuring of Sais Nordeste, including legacy liabilities totaling R$15.3 million ($4.21 million), the majority of which will be scheduled for payment over 10 years.
The business brings over five decades of manufacturing knowledge, direct road connectivity, and access to Salvador’s port infrastructure. BCM has also secured local supply agreements for raw materials, including sulphuric acid from UNIGEL at the Camaçari complex 80km away and magnesium oxide from Brumado 560km away.
Formal transfer of the 90% stake remains subject to satisfaction of conditions precedent and judicial, regulatory, and corporate approvals. Existing shareholders will retain 10% ownership.
Brazilian Critical Minerals is a rare earths explorer and developer focused on its fully owned Ema Project, located in the Apuí region of Amazonas State, Brazil.
Write to Paula Fabe at Mining.com.au
Main image: Brazilian Critical Minerals
