The Caldeira ionic clay-hosted REE project has been included in the Brazil Climate and Ecological Transformation Investment Platform. Pic: Getty Images
Mining
Special Report: Meteoric Resources’ Caldeira rare earths project has been recognised for its potential to advance Brazil’s climate transition plans through its inclusion in the Brazil Climate and Ecological Transformation Investment Platform.
Led by the Brazilian government and Brazilian Development Bank, the Brazil Climate and Ecological Transformation Investment Platform (BIP) is aimed at helping scale energy transition investment from both public and private sectors, mobilise capital at scale, and ensure effective resource deployment.
It will also seek to partner with multilateral development banks and environment and climate funds to finance nascent technologies and develop innovative financing structure that will collectively further the Brazilian government’s climate transition plans across key sectors.
Importantly for Meteoric Resources (ASX:MEI), its Caldeira ionic clay-hosted REE project is the only mining project to be named in the initial phase of the BIP, which seeks to mobilise up to US$10.8bn in capital once final investment decisions are made as one of its pilot programs.
“The BIP is a tremendous initiative for Brazil and all those who are associated with it are to be congratulated for taking steps to bring government, industry and the financing sectors together to jointly tackle climate change,” executive director Dr Marcelo De Carvalho said.
“Meteoric is proud to be part of this initiative as we look to develop one of the world’s largest and most sustainable rare earth facilities, the Caldeira project, in Poços de Caldas in the State of Minas Gerais.
“The Caldeira project, once developed, will be a multi-generational operation which will have the capacity to provide sustainable, low-cost, rare earth oxides, critical to accelerate decarbonisation, sustainable development and strategic initiatives.”
Earlier this week, the company improved the financial metrics for the project after including the high-grade Figueira resource of 47Mt at 4763 parts per million (ppm) TREO into the mine plan.
This improves pre-tax NPV and IRR for Caldeira by 14% and 6% respectively to US$1.4bn and 40.4% while C1 cash costs for NdPr production has dropped by 4% to US$16.84/kg for the first five years.
NdPr production has increased by 4% to 18,109t in the first five years and 7% to 63,899t LOM while five year and LOM production of TREO has increased by 3% to 57,258t and 7% to 193,584t respectively.
Additionally, the company will enjoy higher confidence in the mine schedule as it is now based entirely on both measured and indicated resources.
There is also potential to grow mine life past the current 20 years as it is based on just 13.5% of the current global resource of 740Mt at 2572ppm TREO.
This article was developed in collaboration with Meteoric Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
