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Municipality approves certificate authorizing rare earth mining and predicts the generation of 700 jobs in the region
The city of Caldas, in the south of Minas Gerais, took an important step towards the exploration of rare earths, by approving a land use and occupation certificate for an Australian company that intends to extract minerals in the region. The document, issued by the Municipal Council for the Defense of the Environment (Codema), is one of the first steps towards obtaining environmental licensing, which will now be analyzed by the State Environmental Foundation (Feam).
Rare Earth Investment and Economic Impact
The project, led by the mining company Meteoric Resources, foresees an investment of R$ 1,1 billion, becoming one of the largest enterprises in the sector in Brazil. The operation is expected to generate around 700 direct jobs, in addition to boosting the local economy and positioning Brazil as a major global producer of rare earths. This advance could place Minas Gerais among the strategic states in the production of these elements.
In addition to Meteoric Resources, mining company Viridis Mining and Minerals has also shown interest in operating in the region, announcing a project valued at R$1,35 billion. The company intends to develop the Colossus Project, which includes a beneficiation plant for treating the extracted minerals, covering an area of 15 thousand hectares. According to Minerar MT, operations are expected to begin by 2026.
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Environmental debates and concerns
Despite the economic benefits of rare earth mining, Codema's decision has sparked intense debate in the local community. The environmental group Aliança em Prol da Pedra Branca presented 13 conditions for the exploration to be approved, including the creation of a fund environmental compensation and guarantees of recovery of affected areas. However, all requests were rejected, causing dissatisfaction among residents and activists.
During a public hearing held on February 27, 2025, the population expressed concern about the possible environmental impacts of mining, such as soil and water contamination, as well as the increase in heavy truck traffic and changes in the region's socioeconomic dynamics. The Brasil de Fato portal highlighted that local communities are demanding more transparency and environmental guarantees before operations begin.
Importance of rare earths for Brazil and the world
Rare earths are a group of 17 chemical elements essential for the production of advanced technologies such as smartphones, electric vehicles, wind turbines and defense systems. Currently, China dominates global production, controlling about 70% of the world market, according to the US Geological Survey report.
With the advancement of these projects in Brazil, the country can become less dependent on imports and strengthen its position in the global market for strategic minerals. The federal government has been closely monitoring this movement and is studying measures to encourage the sector., including tax incentives and partnerships with foreign companies.
