Terra Brasil draws US, UK, Chinese interest in $1 billion rare earths project

By Marta Nogueira

RIO DE JANEIRO, Dec 2 (Reuters) - Terra Brasil Minerals is drawing global interest in a $1 billion fundraising push for its Brazilian rare earths and fertilizers project, its chief executive told Reuters, as U.S.-Chinese tensions boost investor appetite in the country with the world's second-largest reserves.

So far, 18 potential bidders, including firms from the United States, Britain, Australia and China, have accessed a data room to evaluate the opportunity, in a process likely to wrap up in the next few months, CEO Eduardo Duarte said in an interview.

"We are ready at the exact right moment," said Duarte, a member of the family controlling the firm, citing renewed interest in Brazilian rare earths assets as the U.S. and other Western countries look to reduce dependence on China, which dominates global production.

Duarte said U.S. government representatives had also sought information about the firm.

Founded in 2013, the junior miner has invested some 200 million reais ($38 million) so far in the Minas Gerais state mine, largely into feasibility studies and technology development for mineral processing.

Half of Terra Brasil's planned investments are aimed at developing rare earths and the rest will focus on fertilizers, given strong domestic demand in Brazil's powerhouse farm sector.

Despite Brazil's vast reserves, the country produced only 20 tons of rare earth elements in 2024, out of 390,000 tons globally, according to Brazil's government, due in part to scarce financing for projects in the country - a central concern voiced at Brazil's biggest mining event, Exposibram, in October.

The U.S. chargé d'affaires in Brazil, Gabriel Escobar, met on the sidelines of that event with several mining companies about rare earth projects in Brazil, according to participants.

Rafael Moreno, CEO of Viridis Mining VMM.AX, which has assets in Brazil's Minas Gerais state, and Ramon Costa, CEO of Aclara Resources ARA.TO, with a project in Goias state, said they are hoping a breakthrough in U.S. trade talks could unlock a wave of new financing for the sector.

The country's sole rare earths producer, Serra Verde, controlled by U.S. investors, is seeking investment from a minority partner, newspaper O Estado de Sao Paulo reported last month. The company declined to comment on the matter.

($1 = 5.32 reais)