Caldeira’s Low-Cost Rare Earths Project Faces Permitting and Funding Challenges Ahead

Caldeira – A Rare Earths Giant Emerges

Meteoric Resources NL has taken a significant step forward with the release of its Pre-Feasibility Study (PFS) for the Caldeira rare earths project, located in Brazil's mining heartland of Minas Gerais. The study confirms Caldeira as one of the world’s premier undeveloped ionic clay rare earth deposits, boasting a maiden Ore Reserve of 103 million tonnes at a high grade of 4,091 parts per million total rare earth oxides (TREO).

This scale and grade underpin a compelling economic case, with the PFS delivering a post-tax net present value (NPV) of US$1.3 billion and an internal rate of return (IRR) of 39%. The project’s design focuses on a 6 million tonnes per annum processing facility, targeting first production in 2028, which would position Caldeira as a meaningful contributor to the global rare earths supply chain.

Low Cost, Environmentally Friendly Operation

Caldeira’s economics are driven by its low operating costs, estimated at US$21.80 per kilogram of neodymium-praseodymium (NdPr) oxide, a key rare earth element used in permanent magnets. The project benefits from a simple, low-impact mining method with no drilling or blasting required, a low strip ratio, and a processing flowsheet that avoids the need for tailings dams. Power will be sourced entirely from renewable energy, including hydro, solar, and wind, reinforcing the project’s environmental credentials.

The mineralisation is surface-near, soft clay material, which allows for efficient extraction and processing. Metallurgical testwork conducted with partners such as ANSTO has demonstrated high recoveries of valuable rare earth oxides with low impurities, further enhancing the project’s attractiveness.

Strategic Importance Amid Global Supply Uncertainty

Caldeira’s development comes at a time of increasing geopolitical tension and supply chain uncertainty in the rare earths market, dominated by China. Recent Chinese export restrictions on medium and heavy rare earths have heightened the strategic importance of alternative sources. Caldeira offers a scalable, non-Chinese supply of critical magnetic rare earths, supported by strong local and federal government backing, including priority permitting status from the Minas Gerais State Government.

The project is well connected to infrastructure, with access to major ports in Sao Paulo and Rio de Janeiro, and benefits from ongoing engagement with government agencies and local communities. Meteoric has also signed memoranda of understanding (MOUs) with downstream processing and offtake partners, including MTM Critical Metals and Neo Performance Materials, aiming to integrate Caldeira’s output into global magnet manufacturing supply chains.

Permitting and Funding on Track

Meteoric is advancing through Brazil’s rigorous three-stage permitting process, targeting construction license issuance by mid-2026. The company is confident of securing all necessary approvals, buoyed by strong political support at municipal, state, and federal levels. Funding plans involve a mix of export credit agency debt, strategic equity, and listed equity, with a target debt-to-equity ratio of approximately 60 – 40. Engagement with government funding bodies such as BNDES and FINEP is ongoing, alongside strategic discussions facilitated by Macquarie.

Looking Ahead

With a pilot plant scheduled to commence operations in late 2025 to validate processing flowsheets and produce mixed rare earth carbonate (MREC) for customer testing, Meteoric is laying the groundwork for a definitive feasibility study and final investment decision. The Caldeira project stands as a beacon of opportunity in the critical minerals sector, promising to deliver a secure, sustainable, and economically robust supply of rare earths to global markets.