Meteoric Resources has cleared a major regulatory hurdle with the approval of its Preliminary Environmental License for the Caldeira Rare Earths Project, enabling the company to progress towards construction and first production targeted for 2028. The company also commissioned its pilot plant, producing its first batches of rare earth carbonate.
- Preliminary Environmental License approved, enabling Installation License application
- Pilot Plant commissioned and first Mixed Rare Earth Carbonate produced
- Strategic acquisition of 21 mining licenses expands project tenure to 67km
- Power supply contracts signed for renewable energy connection
- Non-binding US$50 million Letter of Support received from Export Finance Australia
Regulatory Milestone Achieved
Meteoric Resources NL has taken a significant step forward in advancing its Caldeira Rare Earths Project in Brazil with the approval of the Preliminary Environmental License (LP) in December 2025. This license, granted unanimously by the State Council for Environmental Policy (COPAM), confirms the project's environmental viability and clears the way for the next critical approval; the Installation License (LI); required to commence construction.
The LP approval followed a comprehensive Environmental Impact Assessment spanning nearly 3,000 pages and extensive community consultations, reflecting strong local and governmental support. With this regulatory green light, Meteoric is on track to maintain its schedule for first production in 2028.
Pilot Plant Success and Technical Validation
Complementing regulatory progress, Meteoric successfully constructed and commissioned a pilot plant at Poços de Caldas, replicating the commercial process flowsheet. The plant has produced its first batches of Mixed Rare Earth Carbonate (MREC), marking a major technical milestone. The pilot plant's operation validates key unit processes, including water treatment and material handling, and supports ongoing optimisation ahead of full-scale operations.
With an initial capacity to process 25 kilograms of ionic clay per hour, the pilot plant is expected to produce approximately 500 kilograms of MREC annually. The material produced will be used for partner qualification and downstream technical studies, underpinning the Definitive Feasibility Study (DFS) currently underway.
Strategic Expansion and Infrastructure Agreements
Meteoric has also expanded its strategic landholding by finalising the acquisition of 21 mining and exploration licenses, consolidating a contiguous 67-kilometre tenure in the southern Caldeira region. This acquisition enhances the project's optionality, particularly for heavy rare earth elements, and secures access to key processing and transport infrastructure.
In parallel, the company signed power supply contracts with Companhia Energetica de Minas Gerais SA (CEMIG) to construct a 29-kilometre transmission line connecting Caldeira to Brazil's renewable hydropower-backed national grid. This infrastructure will initially meet Meteoric's 16MW demand, with capacity for future expansion.
Financial Position and Funding Outlook
Financially, Meteoric ended the quarter with a robust cash balance of $32.4 million, supporting ongoing exploration, pilot plant operations, and DFS activities. Post-quarter, the company received a non-binding, conditional Letter of Support from Export Finance Australia for up to US$50 million in project financing, complementing prior interest from the US Export Import Bank and ongoing discussions with other funding partners.
These developments position Meteoric well to advance towards a Final Investment Decision, with the company maintaining strategic flexibility to secure binding offtake agreements and optimise funding solutions.
Outlook and Next Steps
With key regulatory, technical, and commercial milestones achieved, Meteoric Resources is poised to transition Caldeira from development to construction. The upcoming months will be critical as the company lodges its Installation License application, progresses the DFS, and continues to engage with financing and offtake partners. The Caldeira Project’s scalability and low operating costs could position it as a significant supplier in the global rare earths market, particularly for Western industries seeking diversified sources.
Bottom Line?
Meteoric’s Caldeira Project is advancing steadily, but upcoming approvals and financing commitments will be pivotal in shaping its path to production.
Questions in the middle?
- When will Meteoric secure the Installation License and commence construction?
- How will the company finalise binding offtake agreements for its rare earth products?
- What are the risks and contingencies if financing arrangements do not materialise as planned?