U.S. Financing for Mining Companies Anticipates Access to Rare Earths in Brazil - Folha de S.Paulo
Even without a formal agreement between the governments of Brazil and the United States on critical minerals, mining companies with rare earth projects in the country have secured financing from a U.S. state-owned bank that could give the United States an advantage in accessing Brazilian production.
Serra Verde and Aclara, which operate projects in northern Goiás state, signed agreements with the Development Finance Corporation (DFC). In Aclara’s case, the US$5 million loan can be converted into equity. Serra Verde announced in November a US$465 million financing package to expand its mine—the only rare earth mine currently operating in Brazil.
Rare earths comprise 17 elements used in technologies related to the energy transition and defense. The United States is seeking to reduce its dependence on China, which accounts for 60% of global extraction and 90% of refining. Brazil holds the world’s third-largest reserves.
Experts note that DFC financing arrangements often предусматри that part of the production be directed to the U.S. market. The companies did not disclose the contracts. Aclara said there is no obligation to allocate production to the United States.
The Brazilian government argues that processing should take place domestically. Authorities from both countries are discussing the issue, but no agreement is currently in sight.
