Meteoric Resources signs MoU with the SENAI Regional Department of Minas Gerais
MoU includes raw materials from the Caldeira REE project
MEI is targeting first production by 2027
Special Report: Meteoric Resources has signed a Memorandum of Understanding with SENAI Regional Department of Minas Gerais in Brazil – the first permanent magnet maker in Latin America – to explore the production of rare earth magnets.
Permanent magnets are in high demand for car manufacturers, electric motors and wind turbines.
This five-year MoU between Meteoric Resources (ASX:MEI) and SENAI is targeting the demonstrative production of rare earth magnets at Lab Fab using raw materials from the company’s Caldeira project.
Notably, the project has welcomed two resource upgrades in rapid succession this year, and now has a global resource of 619Mt at 2,538 parts per million (ppm) total rare earth oxides (TREO) – with high value magnet rare earths including neodymium, praseodymium, dysprosium and terbium making up around 31% of the basket.
The project is amongst the highest grade globally when it comes to ionic clays, which are typically cheaper to mine and process than the hard rock deposits found in places like Australia’s Goldfields.
Eyeing offtakers for Caldeira
SENAI owns the Lab Fab permanent magnet facility unit, built by the State of Minas Gerais Development Company and recently acquired by the Federation of the Industries of Minas Gerais.
The facility will begin operation later this year, with initial capacity to produce 100 tonnes of permanent magnets per annum – with FIEMG planning to double that capacity within the first three years.
It could be a key partnership for MEI, with Caldeira’s initial production strategy targeting feed grades greater than 4,000ppm TREO for the first 5-10 years.
“This is an important partnership for Meteoric as we look to potential offtakers for our Caldeira Project as it targets first production in 2027,” Meteoric executive chairman Dr Andrew Tunks said.
“We look forward to working closely with the State of Minas Gerais and Lab Fab as they aim to grow Brazil and Latin America’s home-grown rare earth magnet industry, lessening the reliance on foreign imports.”
MEI expects to deliver more resource updates for Caldeira over the remainder of this year and to release a key scoping study in June.
This article was developed in collaboration with Meteoric Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
The post Meteoric Resources inks deal with Latin America’s first permanent magnet maker appeared first on Stockhead.
