Australian rare earth companies Lynas Rare Earths and Meteoric Resources have agreed to an approximately $672 million deal that will bring Meteoric’s giant reserve in Brazil into Lynas’ already extensive portfolio of rare earth mine and processing operations. Meteoric will become part of Lynas in an all-share transaction that could lead to even further mines-to-magnet development in the mineral-rich South American nation.
Meteoric’s flagship Caldeira Rare Earth Project is considered to be the largest known ionic clay rare earth oxide mineral resource outside China, containing both light and heavy rare earth elements. The property is located in the mining jurisdiction of Minas Gerais in the highlands of southeastern Brazil.
Caldeira has the potential to make a significant contribution to Lynas’ existing operations in Australia and Malaysia by dramatically increasing its mineral reserves and opening the door to a new footprint in South America with Meteoric as an already-established trailblazer. The geological and metallurgical characteristics of Caldeira Project mean it can support ultra-low cost rare earths production which provides valuable optionality to move further downstream over time, says Meteoric.
The Caldeira mineralisation is hosted in ionic clays, a soft material which can be excavated without the need for traditional drill and blast mining practices. This has significant advantages when it comes to reducing carbon emissions intensity, environmental impact and operating costs. After extracting the rare earths from the ore, the unmineralised clays will be dewatered and are suitable for dry restacking back into mining areas to rehabilitate the landscape. This eliminates the needs for any tailings storage facility and significantly enhances the sustainability credentials of the Caldeira Project.
Lynas said it expects capital expenditure for the development of the project to be over $500 million, also that it will undertake studies on the potential for additional downstream processing in Brazil.
Commenting on the plan, Lynas Rare Earths’ Board Chair, Prof John Humphrey, said: “Lynas is very pleased with the potential to bring together the Caldeira deposit which is the largest known ionic clay rare earth Mineral Resource outside China reported in accordance with the JORC Code, and Lynas’ high grade Mt Weld deposit and leading rare earth operations. This will deliver on our Towards 2030 growth objective of adding resource and scale. Expanding our operations into a new country will help Lynas maintain its leading position in the global rare earths supply chain and meet increased customer demand for rare earth materials. Brazil is a well-established and supportive mining jurisdiction and its rare earth reserves are the largest outside China.”
“Lynas brings technical expertise, global credibility and balance sheet strength to fast-track the development of Caldeira,” noted Dr Andrew Tunks, executive chair of Meteoric. “Together we see a long future leading the development and industrialisation of the rare earths industry in Brazil.” See www.lynasre.com and www.meteoric.com.au.
