Trial Mining Licence: What Risks Lie Ahead for BRE’s Monte Alto Project?

A Regulatory Milestone for Monte Alto

Brazilian Rare Earths Limited (BRE) has taken a decisive step forward in its rare earths ambitions with the granting of a Trial Mining Licence by Brazil’s National Mining Agency (ANM) for the Monte Alto project in Bahia. This licence authorises the extraction of up to 2,000 tonnes of product annually, enabling BRE to move beyond exploration and into the early stages of commercial mining.

The approval is more than a procedural formality; it represents a critical regulatory milestone that materially advances Monte Alto toward full-scale mining operations. It allows BRE to produce bulk shipments for potential customers and conduct metallurgical testing at its pilot plant, which is currently under construction at the Camaçari Petrochemical Complex and on track to commence operations in the third quarter of 2026.

A Low-Impact, Efficient Development Model

Monte Alto’s development strategy is designed to be both environmentally responsible and capital efficient. The project focuses on a quarry-scale operation featuring ultra-high-grade mineralisation, which supports low production volumes from a compact footprint. This is complemented by high-yield ore sorting technology, achieving yields above 95%, and a dry processing flowsheet that significantly reduces water consumption and eliminates the need for tailings dams.

Such an approach not only aligns with stringent environmental standards but also simplifies the permitting process compared to larger-scale mining projects. BRE’s integrated ore-to-oxides strategy hinges on this low-impact model, which is expected to reduce development risk and speed up the pathway to commercialisation.

Linking Upstream Mining with Downstream Processing

The Trial Mining Licence also facilitates the supply of high-grade feedstock to BRE’s fully permitted pilot plant at Camaçari. This integrated hub-and-spoke model is central to BRE’s vision of establishing a robust Brazilian rare earths and critical minerals supply chain. By linking upstream extraction with downstream processing capabilities, BRE aims to enhance value capture and strengthen its position in the global rare earths market.

Managing Director and CEO Bernardo da Veiga emphasised the significance of this milestone, highlighting the company’s strong regulatory engagement and community relations. He noted that the licence not only advances commercial engagement but also reduces development risk, bringing Monte Alto closer to staged commercial operations.

Looking Ahead: Economic Development Plan and Full Mining Concession

BRE’s next major regulatory step is the submission of an Economic Development Plan to ANM in the second quarter of 2026. This submission is expected to be the final key step toward securing a full mining concession for commercial-scale operations, subject to regulatory approval. Investors and industry watchers will be keenly observing this process as it will determine the pace at which Monte Alto transitions from trial mining to full production.

In the meantime, the pilot plant’s scheduled start in late 2026 will provide further validation of BRE’s integrated development strategy and its potential to contribute meaningfully to the rare earths supply chain, a sector of growing strategic importance globally.