Brazilian Rare Earths has commissioned its Stage I beneficiation pilot plant in Bahia and produced its first rare earth mineral concentrate. Partners will contribute R$6.4 million, or about A$1.7 million, towards the next hydrometallurgical stage planned for commissioning in Q2 2027.
- Stage I pilot plant commissioned at Camaçari
- First rare earth mineral concentrate produced
- R$6.4 million partner funding secured for Stage II
- Stage II to test NdPr oxide, HRE+ concentrate and uranium yellowcake
- Co-product revenues remain unvalidated and excluded from forecasts
Stage I reaches first concentrate milestone
Brazilian Rare Earths (ASX:BRE) has moved its Camaçari processing program from construction into bulk-scale metallurgical testing, commissioning the Stage I beneficiation pilot plant and producing its first rare earth mineral concentrate.
The plant uses physical processing to upgrade ore from the Rocha da Rocha Province. BRE says its configurable circuits will now run systematic campaigns to refine concentrate grade and recovery, generate downstream feedstock and supply operating data for its pre-feasibility study.
Partner funding covers most of Stage II
The next step has also secured a meaningful outside contribution. SENAI CIMATEC and partner organisations will provide R$6.4 million, approximately A$1.7 million, towards the Stage II hydrometallurgical pilot plant. That contribution represents about 59% of the stage’s expected capital and operating costs, lifting total co-funding support for the Camaçari pilot program to R$14.6 million, or approximately A$3.9 million.
Detailed design is underway, with equipment deliveries expected in the fourth quarter of 2026 and commissioning planned for Q2 2027. The timing remains a plan rather than a completed milestone, but the funding agreement gives the next phase a defined technical and financial pathway.
Hydrometallurgy will test ore-to-oxide integration
Stage II is intended to extend the pilot from mineral concentration into extraction and separation. Working with French rare earth specialist Carester, BRE plans to test production of NdPr oxide, a heavy rare earth HRE+ concentrate and uranium yellowcake.
Carester will lead the separation workstream across the pilot program and feasibility studies, while also supporting engineering, design and commissioning for the proposed Camaçari refinery. The resulting product samples are expected to support customer testing, qualification and offtake discussions, according to BRE.
Co-product upside remains a test, not a forecast
The pilot program will also examine recovery of uranium, scandium, niobium, titanium and tantalum from leach solutions and residues. BRE says the August 2026 Scoping Study included uranium recovery costs but assigned no uranium revenue, while no production or revenue was attributed to the other potential co-products.
That distinction matters. BRE cites a forecast first-quartile cost position of approximately US$21 per kilogram of NdPr equivalent, but any improvement from co-product credits depends on recovery rates, product quality, additional costs, regulatory requirements and commercial arrangements. The company has reported no revised cost estimate, production target or economic valuation in this announcement.
Pilot data becomes the next development test
BRE will use the combined results to refine flowsheets, equipment selection, engineering assumptions and product specifications for the Camaçari refinery. It will also assess whether Monte Alto could support a faster pathway based on exporting upgraded mineral concentrate, although that option remains subject to further technical and engineering work.
The immediate evidence to track is therefore operational rather than promotional: Stage I recovery and concentrate quality, delivery of Stage II equipment, progress towards Q2 2027 commissioning and whether hydrometallurgical testing converts the listed co-product possibilities into saleable products.
Bottom Line?
The first concentrate and partner funding reduce uncertainty around the next testing phase, but the investment case still depends on Stage II performance and commercial proof for the proposed co-products.
Questions in the middle?
- Can Stage I campaigns deliver the concentrate grades and recoveries needed for the PFS?
- Will Stage II reach commissioning in Q2 2027 and produce consistent NdPr oxide and HRE+ samples?
- Can uranium and other co-products generate commercial credits after recovery, processing and regulatory costs?