How Did BCM Achieve 52.5% TREO MREC with Minimal Capital at Ema?

High-Grade Rare Earth Carbonate from Ema Project

Brazilian Critical Minerals Ltd (ASX, BCM) has announced a significant milestone in its rare earths development journey with the successful production of a mixed rare earth carbonate (MREC) containing 52.5% total rare earth oxides (TREO) from field trial solutions at its Ema Project in Brazil. Notably, 41.5% of this TREO is composed of magnet rare earth oxides (MREO), a critical subset of rare earths essential for high-performance magnets used in electric vehicles and renewable energy technologies.

The testwork, conducted by the Australian Nuclear Science and Technology Organisation (ANSTO) in Sydney, confirms the viability of BCM’s innovative in-situ recovery (ISR) processing route. This method notably avoids complex flotation and hydrometallurgical steps, which typically drive up capital costs. BCM estimates that this approach could reduce capital expenditure by 80-90% compared to conventional rare earth projects, positioning Ema as one of the lowest capital-intensive rare earth developments in the Western world.

Impurity Profile and Market Readiness

The produced MREC exhibits impressively low impurity levels, with non-rare earth elements constituting less than 2% of the product. Key deleterious elements such as iron, aluminium, calcium, magnesium, uranium, and thorium were reduced to trace amounts through ion exchange and purification steps. This clean profile is expected to simplify downstream refining, reduce reagent consumption, and enhance the overall product value.

Samples of the MREC have been dispatched to prospective offtakers for validation testing, a critical step in securing commercial agreements. The high magnet oxide content places the Ema product among a select group globally, underscoring its strategic importance as a potential Western supply of critical rare earths amid growing geopolitical supply chain concerns.

Supporting Project Economics and Next Steps

The basket value of the MREC product, at approximately USD $38.91 per kilogram of TREO, compares favorably with the USD $30.93 per kilogram used in BCM’s earlier scoping study, which projected a net present value of USD $498 million and an internal rate of return of 55%. These results are pivotal inputs for the company’s Bankable Feasibility Study (BFS), due for completion in the first quarter of 2026.

BCM’s Managing Director Andrew Reid highlighted the company’s progress, stating that the results validate the project economics and future cash flows, while permitting and offtake discussions continue in parallel. The company has also commenced resource extension drilling and remains fully engaged with Brazilian state and federal authorities regarding permitting.

Strategic Implications for Rare Earth Supply

The Ema Project’s ionic adsorbed clay deposit, located in Brazil’s Apuí region, represents a significant addition to the global rare earth supply landscape. With an indicated and inferred mineral resource estimate of 943 million tonnes at 716 ppm TREO, and metallurgical recoveries averaging 68% for magnet rare earth oxides, BCM is well positioned to contribute to diversifying supply away from dominant producers.

The successful demonstration of a low-cost ISR process producing a high-purity, magnet-rich rare earth carbonate product could accelerate the project’s path to commercial production, addressing critical supply chain vulnerabilities for Western industries reliant on rare earth elements.