Mosaic Fertilizantes P&K Limitada, a subsidiary of the Mosaic Company ("Mosaic") and Rainbow Rare Earths Limited ("Rainbow") have completed a favorable preliminary economic assessment and entered into a joint project development agreement to advance the Uberaba rare earths project in Minas Gerais, Brazil.
Under the agreement, the parties will jointly pursue a prefeasibility study ("PFS"), with the intention, subject to favorable results, to progress to a definitive feasibility study ("DFS") targeted later in 2026. Subject to the favorable outcome of the DFS and a decision by both parties to proceed, Mosaic and Rainbow would expect to negotiate definitive agreements for a jointly owned project company, with construction of a processing facility in Uberaba targeted to start in 2027.
"Brazil is emerging as a strategically important jurisdiction for rare earth development in the Americas," said Bruce Bodine, President and Chief Executive Officer of Mosaic. "The Uberaba project brings together Mosaic's Brazilian operations with Rainbow's rare earth expertise. Together, we will evaluate the responsible recovery of critical materials from our existing phosphate operations. This initiative aligns with our strategy to unlock additional value from our existing assets."
The economic assessment, completed in February, indicates that the contemplated onsite processing facility would treat approximately 2.7 million tonnes per year of phosphogypsum, producing 1,900 tonnes of separated neodymium and praseodymium ("NdPr") oxide, and 600 tonnes of a samarium, europium, and gadolinium ("SEG+") product rich in medium and heavy rare earth elements (REE). Using pricing assumptions aligned with current spot markets, the project is expected to deliver compelling economics, including an internal rate of return above the hurdle rate and a relatively short payback period. The capital-intensive mining activities for these elements are expected to be largely incorporated within existing fertilizer operations, and the project's return profile is expected to reflect the final processing steps associated with rare earth elements. Initial production is targeted for 2030, subject to further studies, regulatory approvals, financing arrangements, investment decisions, and successful project execution.
Source: www.rainbowrareearths.com
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein