Brazilian Rare Earths Limited (ASX: BRE, OTCQX: BRELY) has announced significant progress at its Monte Alto Project in Brazil, successfully producing a high-purity mixed-rare-earth carbonate (MREC) and uranium peroxide, also known as yellowcake. These developments mark a critical step in BRE’s plan to build a fully integrated rare earth and critical minerals supply chain in the country.
The Monte Alto Project features ultra-high-grade mineralization rich in rare earth elements (REE), niobium, scandium, tantalum, and uranium. The recent metallurgical tests, conducted in collaboration with ANSTO Minerals, have demonstrated strong recoveries of key magnetic rare earths such as neodymium-praseodymium (NdPr), dysprosium (Dy), terbium (Tb), and total rare earth oxides (TREO). The leaching process achieved extraction rates between 86% and 90% for these elements, with NdPr recovery peaking at 90%.
One of the standout aspects of the project is the direct mineral-to-MREC processing route, which bypasses the need for mineral beneficiation (process to improve the economic value of the ore by removing the commercially valueless minerals). This approach reduces both capital expenditures and operating costs while increasing overall rare earth yields. The MREC produced meets the physical and chemical standards required for conventional solvent-extraction separation circuits, paving the way for further refinement into separated rare earth products.
In addition to rare earths, BRE successfully extracted uranium, producing uranium peroxide, a form of yellowcake commonly used in the nuclear fuel cycle. This co-product adds strategic value given the growing global demand for uranium. The company is also exploring the recovery of other valuable co-products such as niobium, tantalum, and scandium, which could enhance the project’s revenue streams.
The metallurgical tests have scaled well, with larger batch leaching confirming the reproducibility and scalability of the process. This supports the feasibility of expanding production while maintaining product quality and recovery rates.
BRE’s CEO and Managing Director, Bernardo da Veiga, highlighted the company’s rapid progress at Monte Alto, noting that significant advancements have been made in just 16 months since the initial diamond-core intercepts. He pointed out Brazil’s strategic advantages, including access to abundant low-cost hydroelectric power, skilled labor, and a domestic supply of reagents, all of which contribute to lower structural costs for downstream processing.
Da Veiga also detailed BRE’s targeted product strategy, which focuses on producing NdPr oxide, a critical material for permanent magnets, and SEG+ concentrate, which is rich in heavy rare earths such as dysprosium, terbium, samarium, gadolinium, and yttrium. Additionally, the company plans to produce uranium yellowcake as a strategic co-product, along with multiple other co-products including niobium, scandium, and tantalum.
The focus on heavy rare earths is particularly timely given their critical role in advanced technologies and the increasing emphasis on supply chain security for these materials globally. The company’s approach balances the potential for a low-capex, low-opex direct shipping ore (DSO)-style operation with the flexibility to develop a more complex, integrated supply chain.
As the project moves forward, metallurgical studies are now focusing on producing separated NdPr products and further exploring the recovery of co-products, which could diversify and strengthen the company’s market offering.
