Rare Earth Mining Will Use Reservoirs of Mining City That Already Faces Water Shortages and Risks Drought by 2030

Written by Romário Pereira de Carvalho

Published on 10/09/2025 at 21:22

Imagem: Prefeitura de Poços de Caldas

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Viridis Mining Plans to Explore Rare Earths Using Reservoirs in Poços de Caldas, Generating Criticism for Drought Risk and Future Water Fragility

Viridis Mining intends to use the four water reservoirs in Poços de Caldas, Minas Gerais, to explore rare earths. The proposal worries residents and experts because the municipality is already facing water scarcity and has a high risk of drought starting in 2030.

At the information session held by the Federal Institute of Southern Minas on Wednesday (3), urban planner Maria Carolina Nassif presented details of the Environmental Impact Study (EIA) and the Environmental Impact Report (RIMA) prepared by the company.

According to the documents, if the project is installed, the risk of drought could increase even more between 2030 and 2050.

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Criticism of the Study Presented by Viridis

During the presentation, Nassif emphasized that the reports do not offer any conditions. “The document does not bring any conditions. It brings nothing. The company can proceed with just the state licensing and that’s it. What will the municipality gain in return? Nothing. The city hall will provide water, electricity, and gas,” she stated.

The urban planner further pointed out that, even with the mention of a possible partnership between the mining company and the City Hall of Poços de Caldas, there are no formal records of this negotiation.

By the time the report was finalized, neither the City Hall nor the Municipal Department of Water and Sewage (DMAE) had responded about the possibility of conducting an independent study.

Authorization for Pilot Plant in Poços de Caldas

The discussion is happening concurrently with the decision of the State Secretariat for the Environment and Sustainable Development (Semad).

On August 29, the agency authorized the installation of a pilot plant by Meteoric Mining in Poços de Caldas.

The project will allow the construction of a laboratory for processing rare earths for a period of ten years.

Additionally, another mining company that already held mining rights in the area also requested the same license.

The competition has reinforced the criticisms from the Alliance for the Protection of the Environmental Area (APA) of Pedra Branca, which took the case to the Public Ministry of Minas Gerais (MPMG).

Concern About License Fragmentation

In a civil inquiry published on August 20, the MPMG acknowledged environmental risks. The document warned that the fragmentation of extraction and processing requests into separate licenses compromises the integrated analysis of environmental impacts.

Therefore, it may result in the omission of cumulative or synergistic effects, causing future harm to the municipality.

With information from Brasil de Fato.

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Rare Earth Mining Will Use Reservoirs of Mining City That Already Faces Water Shortages and Risks Drought by 2030

Viridis Mining Plans to Explore Rare Earths Using Reservoirs in Poços de Caldas, Generating Criticism for Drought Risk and Future Water Fragility

Criticism of the Study Presented by Viridis

Authorization for Pilot Plant in Poços de Caldas

Concern About License Fragmentation

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Rare Earth Mining Will Use Reservoirs of Mining City That Already Faces Water Shortages and Risks Drought by 2030

Viridis Mining Plans to Explore Rare Earths Using Reservoirs in Poços de Caldas, Generating Criticism for Drought Risk and Future Water Fragility

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