Australian miners turn to Brazil’s critical minerals potential

For decades, Brazil and Australia person been fierce competitors successful the planetary robust ore market. Their respective mining giants – Vale and Rio Tinto – person vied for dominance successful supplying steelmakers crossed Asia and beyond. Their rivalry shapes pricing dynamics, infrastructure investments and commercialized flows.

However, arsenic the satellite pivots toward cleanable vigor and integer technologies, a caller section is unfolding, 1 wherever Australian miners are nary longer rivals but progressively strategical investors successful Brazil’s captious minerals sector.

The planetary contention to unafraid captious minerals – indispensable for electrical vehicles (EVs), upwind turbines and semiconductors – has triggered a question of captious minerals concern successful Brazil. With China tightening its grip connected uncommon world exports, countries crossed the globe are seeking alternate sources and partnerships. Brazil, with its immense and underexplored mineral wealth, has emerged arsenic a compelling destination.

"Brazil, similar Australia, has ever been a precise ample mining jurisdiction and mining forms the backbone of the economy," according to Andrew Reid, managing manager of Perth-based Brazilian Critical Minerals. He added that the “phenomenal magnitude of minerals” marque Brazil astir 2nd to nary successful presumption of opportunities.

Indeed, with the ongoing COP30 taking spot successful Belém, the big state hopes to usage the acme arsenic a mode to presumption itself arsenic a sustainable and strategical planetary spouse successful captious minerals, seeking to showcase its greenish powerfulness resources and its immense reserves to pull investment.

Brazil is already a person successful accumulation of galore cardinal captious minerals, including niobium, with the state holding much than 94% of planetary reserves; graphite, of which it has 26% of planetary reserves; and nickel, of which it holds 12% of reserves. The state has besides emerged arsenic a starring lithium shaper and has go the world’s fifth-largest producer, with companies similar Sigma Lithium producing greenish lithium with 100% greenish energy, zero tailings and recycled water.

Against the backdrop of rising geopolitical tensions, investors are present turning retired successful unit to make the country’s mostly untapped reserves of uncommon world elements (REEs). Brazil has the world's second-largest REE mineral reserves down China, with astir 21 cardinal tonnes (approximately 23% of planetary reserves and resources), according to the US Geological Survey (USGS).

Australian companies are frankincense racing to bring caller Brazilian REE projects online to conscionable increasing planetary demand. Last year, mining institution Serra Verde’s Pela Ema task (partially funded by an Australian concern bank) successful Goiás authorities became the archetypal large-scale uncommon world excavation extracurricular of Asia. The excavation is expected to proviso 5% of planetary request by 2027, with a projected output of 4,800–6,500 tonnes of uncommon world oxides. Brazilian Critical Minerals besides began processing its task successful Amazonas authorities past year.