Australian investments strengthen Brazil’s presence in rare earths

Australians see progress in licensing rare earth projects worth US$655 million in Brazil; Companies defend quick resumption of analyzes after recommendation from the MPF; Viridis and Meteoric rely on institutional support and studies already presented

Australian mining companies Viridis Mining and Meteoric, responsible for two of the largest rare earth projects under development in Brazil, maintain confidence in the resumption of the environmental licensing process, even after a momentary brake imposed by the Federal Public Ministry (MPF). Together, the companies plan to invest US$655 million — a significant investment in a sector considered strategic for the energy transition and reindustrialization of the country.

In November, the MPF recommended that environmental bodies in Minas Gerais suspend the analysis of project licenses until new studies and consultations on possible environmental and social risks were carried out. In response to the recommendation, the State Environmental Foundation (Feam) and the State Environmental Policy Council (Copam) interrupted the evaluation of the requests on November 28th.

The Colossus project, by Viridis, expected to receive a capex of US$358 million, and the Caldeira project, by Meteoric, estimated at US$297 million, are located in the same state that has become a hub for disputes involving mining, environmental preservation and the rights of local communities. In this scenario, the MPF charge found an echo in sectors of society that demand more rigor in granting licenses — especially after decades of accumulated impacts from mineral exploration.

Even so, the mining companies claim that the process remains firm. For Viridis, institutional support for Colossus remains solid. “[O Projeto] Colossus continues to benefit from strong support at all levels of the Brazilian government. The temporary withdrawal from the Copam agenda is a standard procedure following recommendations from the MPF and has no impact on the favorable technical evaluation, publicly documented by FEAM, which supports the Project’s Preliminary License”, stated Rafael Moreno, director of the company.

The executive reinforced that the company has already responded to the points raised by the prosecutors. “Our technical team has thoroughly reviewed the MPF’s requests and is confident that the points raised have already been addressed in our EIA/RIMA, in public hearings and in formal submissions. We hope that Colossus will return to the Copam agenda for deliberation on December 19, 2025, and we remain fully confident in the environmental integrity of the Project, the robustness of the regulatory process and our clear path to obtaining the Preliminary License (LP)”, he stated.

Meteoric follows in the same direction. The company is also waiting for Copam to reevaluate the Caldeira project later this month. “Although this delay in the Copam vote is frustrating, the work carried out by our team supports the approval of the LP, and we remain confident of obtaining it at the next Copam meeting”, declared managing director, Stuart Gale.

According to Gale, there are no new obstacles preventing the process from moving forward. “We are well prepared to support Feam in preparing its response to Copam and the Federal Public Ministry. Based on our analysis, there do not appear to be any new impediments to the approval of the LP at the next Copam meeting, on December 19th”, he added.

The companies’ stance reflects the weight that strategic minerals have come to have in the global economy and in the technological dispute between countries. At the same time, they are pushing the national debate on the balance between development and socio-environmental responsibility — an increasingly central topic for progressive governments and for communities that live with the direct impacts of mining.

Now, the decision is once again in the hands of Minas Gerais’ environmental authorities, who need to reconcile technical rigor, transparency and a commitment to a more sustainable development model. For companies, the bet is that the process will run its course. For society, the expectation remains that, this time, the mistakes of the past will not be repeated.