Brazilian Rare Earths (ASX:BRE) has signed a non-binding memorandum of understanding with Brazil’s state-owned nuclear company Indústrias Nucleares do Brasil to investigate the potential for a uranium byproduct from its rare earths projects.
Indústrias Nucleares do Brasil is responsible for all aspects of production and commercialisation of nuclear materials in Brazil, including approvals for the export of any mineral ore or concentrate containing nuclear materials.
Brazilian Rare Earths, which listed on the Australian Securities Exchange in December 2023 and has a market capitalisation of $666.9 million, intercepted uranium along with rare earths, niobium and scandium during a phase-one drilling program at its Monte Alto Project earlier this year.
President Adauto Seixas says the company’s discovery may provide Brasil with significant additional uranium resources.
“INB will work with BRE to ensure that it can be developed for the benefit of all Brasilians,” he says.
Under the agreement, Brazilian Rare Earths and INB will collaborate on the development of potential uranium feedstocks as a byproduct from the explorer’s projects.
This could potentially lead to an agreement enabling Brazilian Rare Earths to export rare earth/monazite concentrates, that may contain uranium, for downstream processing.
At the same time, the company has secured a permit allowing it to export mineral concentrates and products including uranium and rare earth minerals for testing.
Brazilian Rare Earths says the approval underpins future production scale export.
Brazil currently operates two nuclear power plants and a third is under construction. Uranium mining has been undertaken in the country since 1982.
Write to Angela East at Mining.com.au
Images: Brazilian Rare Earths
