Clay sample with rare earth compounds taken from the volcanic caldera of Poços de Caldas, MG — Photo: Viridis/Disclosure
On Wednesday (30), Lynas Rare Earths announced an agreement to acquire Meteoric Resources for around A$968 million (approximately R$3.5 billion, at current prices). With the operation, the Australian company will control the Caldeira rare earth project in Caldas (MG).
The Australian Meteoric was one of the first foreign companies to acquire rare earth exploration projects in the region, together with the also Australian Viridis Mining and Minerals, in 2023. Both projects are in the environmental licensing phase and are expected to begin operations in 2028.
In April this year, another Australian company, Power Minerals, concluded the purchase of the "Morro do Ferro" rare earths project, in Poços de Caldas (MG), for around R$80 million and continues to carry out exploration research.
The region has also started to arouse the interest of companies from other countries that seek to guarantee future access to strategic minerals, whether through the acquisition of exploration areas or the purchase of minerals.
According to data from the National Mining Agency (ANM), in 2025, there were 1,882 authorizations for rare earth research in Brazil, of which 361 were in Minas Gerais. Around a third of Minas Gerais orders were concentrated in the Poços de Caldas region.
The move occurs at a time of international dispute over control of the rare earth chain and the breaking of China's monopoly, which concentrates around 70% of global production and almost 90% of the processing and manufacturing of magnets. The United States and the European Union are at the forefront of this race for suppliers of these critical minerals.
Mining company drills in area of future rare earth mine in Poços de Caldas, MG — Photo: Viridis/Disclosure
But why did the South of Minas become so important in this dispute? g1 prepared 8 questions to explain what foreign companies are looking for in the region:
What are rare earths and why are they so important?
Why did Sul de Minas enter the international radar?
How big is the region’s mineral potential?
Which foreign companies are investing in the region?
Why are Australian companies so present?
Does foreign interest end in Australia?
Can the South of Minas supply how much of the world market?
Why is the current moment considered strategic for Brazil?
1. What are rare earths and why are they so important?
Rare earths are a group of 17 chemical elements used in different sectors of industry and technology. Among them are neodymium, praseodymium, terbium and dysprosium. Some of these elements are essential for the manufacture of high-performance permanent magnets, used in electric car engines, wind turbines, electronic equipment and defense systems.
The demand for these minerals has increased with the expansion of technologies associated with the energy transition and with the need for countries such as the United States and members of the European Union to reduce dependence on the production chain concentrated in China.
Rare earths: types and uses — Photo: Arte/g1
2. Why did Sul de Minas enter the international radar?
The Poços de Caldas Plateau, which encompasses areas of Poços de Caldas, Caldas and Andradas, in Minas Gerais, and Águas da Prata, in São Paulo, brings together characteristics considered favorable to the occurrence of rare earths. The geological structure of the region was formed from volcanic activities thousands of years ago. The caldera resulting from this extinct volcano has ionic clay deposits, in which the elements are abundant and can be found close to the surface.
The deposit has stood out worldwide for its size and high concentration of rare earths. Another difference is that the elements are in ionic clay, which allows exploration in open pit mines, which makes the process easier and cheaper than in other mines outside Brazil.
3. How big is the region’s mineral potential?
The exact size of the resources still depends on the studies carried out in each area, but the Poços de Caldas Plateau as a whole is considered one of the main Brazilian regions for rare earth research. According to geologist Álvaro Fochi, responsible for identifying one of the deposits in the region, in the early 2010s, the approximately 800 km² crater could generate up to 300 million tons of rare earths.
This number, however, does not mean that this entire volume is available for commercial exploitation. Each project needs to undergo research, resource estimates, feasibility studies and licensing before eventual production.
Rare Earths: deposit on an inactive volcano in the south of MG could place Brazil as a protagonist in the global race for clean energy — Photo: Arte g1
4. Which foreign companies are investing in the region?
Three Australian groups have projects already structured in the region. Meteoric is currently developing the Caldeira Project, in Caldas, which is under negotiation with Lynas Rare Earths. The project intends to explore an area of 425 hectares, which has mineral resources estimated at 128 million tons and, according to the company, brings together 802 thousand tons of neodymium and praseodymium oxides and 41 thousand tons of dysprosium and terbium oxides. Lybas estimates an average annual production of 3,862 tons of NdPr (neodymium and praseodymium) and 127 tons of DyTb (dysprosium and terbium) over the project's useful life.
Viridis Mining and Minerals develops the Colossus Project, in Poços de Caldas in an area of 373 hectares. When fully implemented, it should move 5 million tons of clay per year, generating an average of 2,843 tons of neodymium-praseodymium (NdPr) per year, expected to last 40 years of activity at the site. The company plans to invest around R$1.7 billion until the mine begins operating. In the fourth quarter of 2025, it announced another R$132.5 million in investments, including resources intended for the acquisition of land, a supermagnet recycling laboratory and a rare earth extraction laboratory.
Power Minerals acquired, for around R$80 million, the company responsible for the Morro do Ferro project, in Poços de Caldas. In 2026, the Australian company announced a first exploration target with an estimated potential of between 9.2 million and 10.7 million tons and began a new drilling campaign.
Rare earth extraction laboratory opens in Poços de Caldas — Photo: Meteoric/Disclosure
5. Why are Australian companies so present?
Australia holds the world's fourth largest reserves of rare earths (around 5% of the global total) and acts as one of the main producers in the sector outside of China. It is one of the countries seeking to expand its participation in the global chain of critical minerals. In the case of Sul de Minas, Australian companies found a combination of geological potential and the possibility of entering an international market that is looking for new sources of rare earths.
The movement also shows that foreign interest is not limited to the construction of mines. Companies seek to develop processing technologies, carry out sample tests and establish contracts with potential buyers.
6. Does foreign interest end in Australia?
No. The production planned for the projects in the South of Minas is already attracting interest from companies from other countries.
In the case of Caldeira, for example, Meteoric signed a strategic partnership memorandum with the South Korean POSCO International Corporation, which provides for the possibility of acquiring up to 30% of the project's production for a period of up to seven years. The company also maintains a non-binding memorandum of understanding with the American company Ucore Rare Metals for technical tests related to the separation of material produced from the Boiler. The agreement, according to information released by the company, does not represent a sales or supply contract. The company also sent samples of the material produced from the project to companies in the United States, Europe and Asia, for technical testing and possible commercial negotiations.
Viridis has also sent samples of ore and mixed rare earth carbonate to Australia and European countries, with the aim of supporting the development of the Colossus Project, including ore analysis to define the process route and negotiations related to future production purchase agreements.
In addition to the Australian mining companies present in the South of Minas, the American company USA Rare Earth signed an agreement to acquire a stake in the mining company Serra Verde, responsible for a rare earth mine in Minaçu (GO), in a transaction valued at around US$2.8 billion. The deal foresees the combination of the operations of the two companies to create a complete production chain.
Serra Verde rare earth mine, in Goiás — Photo: Mineradora Serra Verde
7. Can the South of Minas supply how much of the world market?
Not entirely. Estimates indicate that the region can supply around 20% of the global demand for rare earths, but confirmation of this potential depends on the viability of each project.
In just 15% of the area of the Poços de Caldas caldera, 2 billion tons of clay with rare earth ions were identified. According to studies by mining companies, this amount guarantees 20 years of mining.
In the case of the Caldeira project, Meteoric estimated the capacity to produce around 12.5 thousand tons of rare earth oxides per year and stated that the project could meet approximately 8% of global demand.
The Colossus Project, owned by the company Viridis, has total mineral reserves estimated at 200.1 million tons, sufficient to sustain an operation of five million tons per year for 40 years.
The region's geological potential numbers, however, should not be confused with effective production. For a deposit to become a mine, studies, investments, licensing and proof of economic viability are necessary.
Brazil has the largest rare earth reserves in the world after China — Photo: Getty Images
8. Why is the current moment considered strategic for Brazil?
Brazil has the 2nd largest rare earth reserves in the world, but only 1% of global production. In September, the law creating the National Critical and Strategic Minerals Policy was sanctioned. The legislation seeks to encourage the processing of these materials in the country and determines that part of the sector's revenues be allocated to innovation and research. The document provides up to R$7 billion in incentives for projects in the area.
The international race can bring investments that go beyond extraction, but also for research, processing, technological development, production and recycling of super magnets.
At the same time, the expansion of activity increases the need to evaluate the environmental and social impacts of projects. In the Poços de Caldas Plateau, for example, the projects are in areas close to communities, conservation units and, in the case of Caldeira, a former uranium mining unit of Indústrias Nucleares do Brasil (INB), which is undergoing a decommissioning process and houses around 12 thousand tons of radioactive waste.
The proximity raised questions about radiological risks from the community and environmental protection organizations, which led to a determination by the Federal Court for a new technical assessment of the risks of the project.
In September, the deputy attorney general of the Public Ministry at the Federal Court of Auditors, Lucas Rocha Furtado, also requested that the TCU carry out an operational audit on the exploration of rare earths in the Poços de Caldas Plateau, involving the Caldeira and Colossus projects and the cumulative impacts of these projects on water, soil and public health.
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