Lab Fab’s second MoU with rare earth exploration companies.
Australia-based mining and exploration company Brazilian Critical Minerals (BCM) has signed a Memorandum of Understanding (MoU) with SENAI Regional Department of Minas Gerais, owner of Lab Fab (PDF). SENAI stands for Serviço Nacional de Aprendizagem Industrial, which roughly translates to National Service for Industrial Training. The organization provides training for specialized workers in fields such as mining or chemical engineering. Lab Fab is currently developing Latin America’s first rare earth magnet production facility. Under the five-year agreement, the two sides will seek to outline supply agreements, joint research on supply chains, and other areas of cooperation, such as consultancy or training. Lab Fab plans to begin initial production stages later this year with a targeted production of 100 tons of rare earth magnets annually. The magnet maker plans to double this within three years.
BCM is currently in the exploration stage of its Ema rare earth project in Northern Brazil. Ema is an ionic adsorption deposit in which ores are hosted in decomposed rocks formed by intense weathering, primarily found in tropical and subtropical areas. Currently, these clay deposits are mined mainly in Southern China and neighboring Myanmar. However, multiple projects in Brazil seek to develop clay projects, which could make the Latin American country a major player in the industry. Fellow Australian miner Meteoric Resources is also developing such a deposit in Brazil (we reported). In addition, Meteoric also signed a five-year MoU with the SENAI Regional Department of Minas Gerais over the offtake of rare earth raw materials.
However, despite signing two agreements with developers of Brazilian deposits, initial production at Lab Fab will use Chinese feedstock, according to a spokesperson for the magnet maker in a recent interview held by industry news and analysis provider Argus. Meteoric targets to start the first production steps in 2027, while BCM’s project is in the early exploration stages, with scoping studies and economic analysis due for completion later this year.
Photo: iStock/xiao zhou