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Austrian Company Announces Billion-Dollar Investment in Bahia Rare Earth Sector. The Arrival of the Mega Enterprise Will Contribute to Job and Income Generation in the State.
Australian Brazilian Rare Earths, through Borborema Mineração, signed an institutional support letter of intent on Wednesday – 24, formalizing the objective of both parties to facilitate the installation of a production unit aimed at manufacturing mineral concentrate of rare earth oxides in the state, and in a subsequent investment phase, carry out investments in a second factory for rare earth separation, which will contribute to job generation in Bahia.
Brazilian Rare Earths Plans to Invest R$ 3.5 Billion
The signing comes two months after seeking partnership with the State Government, through the Secretariat of Economic Development (SDE).
Both phases together total an estimate of R$ 3.5 billion in investments, contributing to job generation in the state. According to Secretary Angelo Almeida, the company understands that the Bahia government is an important stakeholder in implementing a rare earth project of this magnitude.
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According to Ângelo, the secretariat is the entry point for attracting investments in the state, and its team is highly qualified and available to support companies.
The mining company already contributes to job generation with about 200 employees in the municipality of Ubaíra, where mineral research is taking place. The team will be available to assist in obtaining the necessary licenses at federal, state, and municipal levels for investment, financing, and infrastructure.
New Factory Could Begin Operating in 2028 Contributing to Job Generation
According to Brazilian Rare Earths’ CFO, Renato Gonzaga, who hierarchically oversees Borborema Mineração, Bahia is qualified to host large companies. This protocol is the first step taken in terms of official support by the government for a project that holds great transformative potential for Bahia, especially in job generation.
It is a rare earth project, unlike anything globally. In its two phases of development, it is expected to generate many jobs and economic growth, with the idea that the company can advance in the rare earth production chain, increasingly verticalizing production and adding more value to the product, which is generated internally in Bahia, along with all the development that the project brings.
The industrial complex project for rare earth oxide production, which will receive billion-dollar investments, is divided into two phases. The first will be a production unit focused on producing rare earth oxide mineral concentrate, in the cities of Ubaíra and Jiquiriçá, with investments of R$ 500 million and an expected start of operations in 2028.
Factory Will Have Capacity to Produce 55 Thousand Tons Per Year
The second phase of the rare earth project, at the Camaçari Industrial Pole, will be an industrial plant for separating rare earth oxides, with investments of R$ 3 billion and an initial production capacity of 15 thousand tons per year, with a potential capacity expansion to 55 thousand tons per year, and an expected start of operations in 2034.
It is estimated that 200 direct jobs will be created in operations and 250 direct jobs in construction during the first phase. In the second phase, 800 direct jobs in operations and up to 1,250 direct jobs in construction.
It is worth mentioning that Brazilian Rare Earths is led by a team of experienced executives and geologists in mining, with hundreds of years of accumulated experience in the discovery, development, and operation of mineral assets to generate value across a wide variety of jurisdictions and commodities worldwide.
Não confio nos governantes desse Estado, se eu fosse baiano, não acreditaria.
De confiança mesmo é o estado da família miliciana saiu. O governador, inclusive, acabou de ser indiciado pela PL por CORRUPÇÃO.