Meteoric Resources (ASX:MEI) used a presentation at an RIU conference to outline progress on its Brazilian ionic clay rare earths project, emphasizing what managing director Stuart Gale described as a combination of scale, high grades, strong recoveries and relatively simple processing.
Gale said the company’s project in Brazil represents an “ionic clay project” with what he called the highest grades among comparable projects globally. He added that Meteoric has focused on proving recoveries through metallurgical test work, including work completed at ANSTO and additional results generated through a pilot plant that has been built more recently. According to Gale, the pilot plant has been producing results “better than what we were getting at ANSTO.”
Resource scale, reserve and project life
He also pointed to progress in converting resource to reserve through drilling and metallurgical work over the past year, noting that the company published a reserve alongside the pre-feasibility study (PFS) in July. Gale said the project has “over 100,000,000 tons of reserve at over 4,000 PPM,” contrasting that with ionic clay operations in Southeast Asia and China that he said are “probably mining at 1,000 PPM-1,200 PPM.” He attributed the higher grades to the project’s geological setting within a volcanic system and long-term weathering.
Permitting, funding position and de-risking steps
On project development milestones, Gale said the company completed and lodged its PFS in early July last year and raised capital following that work. He said Meteoric had approximately AUD 33 million in cash at the end of December.
He also described permitting as a major focus over the last several years. According to Gale, Meteoric has been working on environmental licensing and permitting for about three years and received a preliminary environmental license in December, which he said enables the company to move toward an installation license.
Processing approach and infrastructure in Poços de Caldas
Gale emphasized what he described as a straightforward mining and processing route typical of ionic clay operations. He said the mineralization starts at surface, can extend from 20–30 meters to as deep as 100 meters in some areas, and can be mined using a “free dig” approach without drill-and-blast. He outlined a process where the clay is washed in ammonium sulfate to release rare earths, followed by ammonium bicarbonate to produce a mixed rare earth carbonate (MREC).
He also highlighted infrastructure advantages in the Poços de Caldas region, describing it as a “brownfields mining jurisdiction” with a local population of roughly 170,000 and a long operating history for other miners. Gale said Meteoric expects to use power supplied “100% from hydroelectric and solar,” with ample water availability in the area and road access of about 250 kilometers to the Port of Santos.
Market backdrop and demand themes
Gale framed Meteoric’s development against what he called an active geopolitical and market period for rare earths. He cited tariffs and export controls affecting trade between the U.S. and China, and referenced rare earth price moves, stating NdPr prices increased from around $65 per kilogram to “$120-something a kg.” He also pointed to U.S. government support for MP Materials and noted recent merger-and-acquisition activity in the sector.
He said the global magnet supply chain remains concentrated, with “90% of magnets” produced in China, and argued that diversification efforts will require more raw material supply such as mixed rare earth carbonate. Gale cited market research from Project Blue indicating demand growth over the next 25 years for neodymium iron boron magnets, tying the outlook to electrification, robotics, AI and electric vehicles. He also referenced Morgan Stanley commentary on long-term robotics growth as a driver of magnet demand.
Economics, pilot plant output and offtake discussions
Providing a high-level snapshot of the PFS metrics he discussed, Gale said the project contemplates capital expenditure of $443 million and processing 6 million tonnes of material per year. He said planned NdPr production is “a bit over 4,000 tons” per year and highlighted the project’s production of heavy magnetic rare earths DyTb, which he said totals 135 tonnes annually and is in “really short supply.” Gale said the project’s low-cost profile and pricing assumptions deliver a net present value of $1.3 billion “at roughly current prices.”
He also said Meteoric expects to realize approximately 70% of spot NdPr pricing and referenced an “ongoing equivalent NdPr price” in the range of roughly $20 per kilogram in company materials he presented, while noting the current spot price was around $120–$126 per kilogram at the time of the presentation.
On commercialization activities, Gale said the pilot plant is producing mixed rare earth carbonate, which the company is sending to potential customers including “suppliers” and “magnet makers,” and that Meteoric is also evaluating downstream separation opportunities.
He said the company has non-binding offtake agreements with Neo Performance Materials, Ucore (which he said is building a facility in Louisiana), and referenced an additional arrangement with MTM related to separation work. On financing, Gale said Meteoric has received export credit agency support indications, including a $250 million letter from EXIM and a $50 million letter of interest from EFA, and that the company is continuing to engage with BNDES and other ECAs as part of a broader funding plan.
About Meteoric Resources (ASX:MEI)
Meteoric Resources NL explores for mineral tenements in Brazil, Canada, Western Australia, and Northern Territory. It explores for gold, copper, cobalt, and diamond deposits. The company owns interests in the Palm Springs gold project, which covers an area of approximately 12,500 ha located in Western Australia; the Juruena Gold project located in Brazil; Webb Diamond JV project covers an area of 400 square kilometers located in Western Australia; and the Warrego North IOCG project located in the Northern Territory.
