Brazilian Rare Earths (ASX:BRE) reports a Scoping Study supporting an after-tax net present value of US$7.9 billion ($11.8 million) for its Rocha da Rocha Rare Earths Project in Bahia, Brazil.
The study confirms the project can deliver an after-tax internal rate of return of 89% and a payback period of 1.1 years under Argus long-term European and US price forecasts.
Managing Director Bernardo da Veiga says the study validates the deposit as a core asset.
“Monte Alto is not simply a high-grade rare earth deposit; it is the anchor of a broader critical minerals province with the potential to become one of the most important new sources of rare earth supply globally,” de Veiga says.
Centred on the ‘ultra-high-grade’ Monte Alto deposit, the mineral resource estimate averages 11.3% total rare earth oxides. The company says this provides a structural advantage that few rare earth projects can match globally.
“High grade changes the entire development equation. It means fewer tonnes mined, less material handled, lower processing intensity, a smaller mine-site footprint, and the potential for a simpler, lower-cost path to globally significant rare earth production,” da Veiga notes.
The Scoping Study forecasts a life-of-mine average annual production of an estimated 5,276 tonnes of neodymium-praseodymium oxide and 2,253 tonnes of heavy rare earth (HREE) concentrate containing dysprosium, terbium, yttrium, and gadolinium.
Over the first five years, production increases to 6,351 tonnes per annum (tpa) of neodymium-praseodymium oxide and 2,502 tpa HREE concentrate.
The project incorporates a hub-and-spoke development model with mine-site beneficiation at Monte Alto and Sulista, followed by centralised processing at the Camaçari Petrochemical Complex. Monte Alto uses dry crushing, screening, and sensor-based ore sorting, while Sulista employs conventional flotation and gravity separation.
According to the study, upfront development capital is estimated at US$69 million for the Camaçari processing facility and US$270 million for reagent production facilities. Operating costs average $US232 million per annum across mining, beneficiation, leaching, separation, and logistics.
The production target comprises 44% indicated and 56% inferred mineral resources. Indicated resources comprise 93% of scheduled processing feed in year one and average 87% over the first five years.
Brazilian Rare Earths has secured a binding 10-year heavy rare earth offtake agreement with Carester, establishing a European pathway for the product alongside technical services for downstream separation engineering.
The company notes the study excludes uranium revenue despite a forecast production of 362 tpa of uranium oxide due to Brazil’s state-controlled commercialisation framework.
In addition, the project is supported by the SUDENE incentive, which grants a 75% reduction in income tax for industrial and mining projects approved in northeast Brazil.
Brazilian Rare Earths plans to advance prefeasibility studies with first production targeted for 2031, while evaluating a fast-track concentrate sales pathway that could commence as early as 2030. Meanwhile, exploration continues across multiple targets within the broader province.
Brazilian Rare Earths is an explorer focused on discovering and developing critical minerals and rare earths in northeastern Brazil.
Write to Paula Fabe at Mining.com.au
Images: Mining.com.au
