The South Korean group plans to integrate Meteoric’s Caldeira rare earths project into its supply chain. It is also considering taking a stake in the company and developing processing capacity in Brazil.
On Monday, Brazil and South Korea agreed to deepen cooperation across the critical minerals value chain – and these plans are already taking shape at the corporate level. South Korean group Posco and Australian mining developer Meteoric Resources have signed a memorandum (PDF) of understanding. The aim is to connect Meteoric’s Caldeira rare earths project in Brazil with Posco’s supply chain.
Under the agreement, Posco is to purchase up to 30 percent of the rare earth material to be produced at Caldeira for a period of up to seven years. The raw materials will be used to manufacture permanent magnets, key high-tech components for civilian and military technologies. The group is considering taking a stake in Meteoric and plans to support the financing of the rare earths project, including through South Korean export credit agencies. The companies also intend to cooperate on the potential development of processing capacity in Brazil.
Another Building Block for Supply Chains Outside China
Caldeira, located in the state of Minas Gerais, hosts an ionic adsorption clay deposit. This type of deposit contains light rare earth elements such as neodymium and praseodymium as well as comparatively high proportions of particularly sought-after heavy rare earths. Meteoric initially plans to produce mixed rare earth carbonate. The company has already signed agreements with Neo Performance Materials and Ucore Rare Metals covering the future offtake and processing of its material, two industry players working to establish non-Chinese value chains. This is also a goal pursued by Posco International, the South Korean group’s trading and investment arm. It has entered into a similar partnership with U.S.-based Energy Fuels.
Photo: iStock/libre de droit
