Brazilian Rare Earths Limited (OTCQX: BRELY) has announced a significant milestone for its Amargosa Bauxite-Gallium Project in Bahia, Brazil, unveiling a maiden mineral resource estimate that underscores the project’s potential as a major player in the extraction of both high-quality bauxite and strategic gallium. This development highlights the burgeoning importance of these minerals, particularly gallium, which is forging new pathways in technology and defense sectors.
The resource estimate details a substantial deposit of 568 million tonnes of mineralized material at an average of nearly 30% Total Available Alumina (TAA), with 98 million tonnes classified as direct‑ship bauxite at an impressive 41.9% TAA. Additionally, the project contains over 27 billion grams of gallium, amounting to roughly 27,098 tonnes, at a concentration of 47.7 parts per million, an amount that positions Amargosa as a significant potential source of this critical mineral.
Bauxite, the primary ore for alumina and aluminum, remains pivotal in global construction, transportation, and packaging industries. What sets Amargosa apart is the high alumina grade coupled with a low reactive silica index (RSI), which improves processing efficiency by lowering caustic consumption and enhances alumina recovery. The deposit’s comparison to Guinean benchmarks signals its attractiveness to international refiners seeking premium, reliable supplies within a politically stable jurisdiction.
Gallium, often overshadowed by more popular critical minerals like lithium or cobalt, has gained strategic prominence due to its unique properties. It is essential in the manufacture of semiconductors, high-performance magnets, and defense-related applications such as radar systems and satellite technology. Its importance is only increasing as emerging technologies and defense systems depend on materials that can withstand high temperatures and complex electronic environments.
The potential of gallium extends beyond its niche applications. Its role in semiconductors makes it a vital component in the production of gallium arsenide and gallium nitride, materials fundamental to high-speed internet infrastructure, advanced communications, and defense technologies. As global supply chains tighten, particularly because China controls a significant share of gallium refining capabilities, securing new sources like Amargosa becomes critical for industry independence and security.
Beyond the mineral content, the project benefits from its location within Brazil’s Tier-1 mining jurisdiction of Bahia, renowned for its stable regulatory environment, supportive government policies, and efficient permitting processes estimated to take only 2-3 years. Infrastructure benefits further bolster its viability, including established highways to export ports, a planned railroad connection, and renewable hydropower sources that can power extensive operations cost-effectively. A memorandum of understanding with the port of Enseada offers a strategic advantage for efficient mine-to-port logistics, supporting early production and scalable growth.
Brazilian Rare Earths is already exploring options to maximize the project’s value, including potential joint ventures, de-merger arrangements, or a possible spin-out or IPO dedicated to this asset. With a panoramic view of scaling the project through processed bauxite production, the company aims to leverage the impending scoping study set for late 2025 to define long-term development pathways. The substantial resource base, combined with infrastructure and logistical advantages, indicates Amargosa’s potential to emerge as a significant regional producer of premium alumina and gallium, especially as global demand for both materials continues to rise.
The importance of this project extends into the realm of strategic geopolitics. As nations and industries contend with supply chain vulnerabilities, particularly for critical minerals, the Amargosa project exemplifies how resource-rich regions like Bahia can become pivotal in securing future technological and defense needs. Gallium, in particular, is emerging as a mineral of high strategic value, with national security considerations increasing its importance in technology independence and defense readiness.
Investors and industries alike will keenly observe how Brazilian Rare Earths advances development at Amargosa. The combination of sizable, high-quality resources, supportive infrastructure, and a stable jurisdiction underscores its potential to contribute meaningfully to the critical minerals landscape, reaffirming the vital role of these resources in tomorrow’s technological innovations and national security frameworks.
