According to Valor Data, shares of Brazilian Rare Earths, listed on the Australian exchange, jumped 14.8% in just one week (from October 9 through 16), hitting an all-time high of A$5.72 on Thursday (16).

Aclara Resources, listed on the Toronto Stock Exchange in Canada, gained 5% over the same period and also reached a record high on October 14, trading as high as C$4.45. As of Thursday (16), the stock was stable at C$3.15.

Meanwhile, shares of Meteoric Resources and Viridis Mining, both listed in Australia, rose 15% and 15.08%, respectively, during the period.

According to the latest edition of the Critical Minerals Investment Guide, published by Brazil’s Ministry of Mines and Energy (MME), these four companies hold four or fewer of the ten rare earth mining projects currently in the pre-operational phase in the country.

“If we look at what’s happening globally, there are hundreds of projects under development, but the rise in the stock prices of miners operating in Brazil signals confidence, a bet that the country could become an important player compared to other regions,” said Fernando Landgraf, professor at the Polytechnic School of the University of São Paulo (USP) and former president of the Technological Research Institute (IPT).

Today, China dominates nearly the entire global rare earth supply chain, from production to processing. Brazil holds the world’s second-largest reserves but still plays only a minor role in production. The country’s only commercially operating mine, run by Serra Verde in Minaçu (Goiás), began operations in 2024 and aims to produce 5,000 tonnes of rare earth oxides per year.

Last year, global rare earth oxide production totaled 390,000 tonnes, with China accounting for 270,000 tonnes, or about 70% of the total, according to the U.S. Geological Survey (USGS).

Under China’s new rules, which will further tighten its grip on critical minerals, foreign companies will need Beijing’s approval to export magnets that contain even trace amounts of rare earth materials of Chinese origin, or that were produced using Chinese extraction, refining, or magnet manufacturing technologies.

Klaus Petersen, Brazil country manager for Viridis, said the company’s stock likely rose in response to the pressure China has been putting on the West. He noted that this environment makes rare earth companies, including those still in pre-operational stages, appear as potential future alternatives to China’s monopoly.

“China has increased export restrictions on rare earths, setting conditions such as knowing where the material is going and whether it will be used for military applications, which they oppose but can’t fully control,” Mr. Petersen said. “Everyone wants this material, especially for defense, not to mention electric vehicles. In any case, China has shut its doors even tighter, putting pressure on the entire Western world.”

Viridis’s project lies on the geological structure of an ancient volcano in the Poços de Caldas Alkaline Complex in Minas Gerais, with an expected average production of 9,400 tonnes of rare earth oxides per year, extracted from ionic clays that concentrate these elements.

For Marcelo Carvalho, CEO of Meteoric, the recent rally in the company’s shares will not necessarily accelerate investment decisions for its project, also located in the Poços de Caldas complex. Meteoric expects to produce 13,600 tonnes of rare earth oxides per year.

“Our investment depends on hitting certain milestones, such as environmental licensing and economic feasibility studies, which aren’t market-driven,” he said. “Of course, investor appetite grows, but the timing doesn’t change much.”

Mr. Carvalho added that investors are closely watching U.S. dependence on Chinese rare earths. “When the market sees restrictions, it invests in what could break those restrictions in the future,” he said.

As Valor reported in September, Viridis and Meteoric are pursuing strategies to diversify both financing sources and future buyers for their production, seeking paths that reduce exposure to Chinese influence.

Aclara and Brazilian Rare Earths did not comment before publication.

Aclara’s project is located in Goiás, and, in September, the company secured a commitment of up to $5 million from the U.S. International Development Finance Corporation (DFC) to fund its feasibility study in Brazil.

Brazilian Rare Earths’s project is located in Bahia, and the company announced this week it had raised 120 million Australian dollars (US$78 million) to accelerate the development of its rare earth initiatives in the country.

*By Michael Esquer — São Paulo

Source: Valor International

https://valorinternational.globo.com/