EFA has indicated potential financing of up to US$100 million for two Brazilian projects owned by Viridis Mining and Minerals and Meteoric Resources, which together carry combined capital expenditure estimates of close to US$660 million.
Support For Caldeira Project
Meteoric, which controls the Caldeira rare earths project in Minas Gerais, received a letter of support from EFA flagging potential financing of up to US$50 million. “We view the letter of support from Export Finance Australia as a strong vote of confidence in Meteoric’s strategy and capability to become the next major supplier of critical rare earth materials,” Meteoric managing director Stuart Gale said in a statement.
“This endorsement will assist with the broader project financing discussions underway for the Caldeira project and adds flexibility to our funding strategy,” he added. Viridis also received a similar letter this week, with EFA signalling potential financing of up to US$50 million for its Brazilian operations.
Development Lenders Take The Lead
Rare earth companies have increasingly turned to export credit agencies and development banks as private lenders remain cautious. Industry participants say commercial banks continue to grapple with unfamiliar risks in the sector, particularly around pricing volatility, processing complexity and guarantee structures that differ from those in more established mining segments.
According to Rafael Moreno, managing director and chief executive of Viridis, lenders typically impose two key conditions before committing capital.
“Two main requirements stand out,” Moreno said in a recent interview with BNamericas. “First, we need to prove our process with a demonstration or pilot plant.”
Viridis is currently building a large pilot facility in Poços de Caldas, where its project is located. The plant will require between 20 and 30 staff to operate and is expected to be completed by March this year.
“It is not a small facility and banks require this proof of concept before lending,” Moreno said.
The second requirement, he added, relates to pricing risk. “Banks require a floor price due to concerns over market manipulation, particularly by China. A floor price provides assurance that we can meet our debt obligations.”
Broader Institutional Backing
Beyond EFA, several other development finance institutions are already involved in supporting Brazilian rare earth projects. These include France’s export credit agency Bpifrance, Canada’s Export Development Canada, the US International Development Finance Corporation, and Brazil’s state-run development bank BNDES.
Mining analyst Pedro Galdi of AGF Investimentos said rare earths continue to draw strong investor interest, even as uncertainty persists.
“Rare earths are currently one of the segments that attract the greatest attention from global investors, but the risks associated with this sector are still not well understood by market participants,” Galdi said. “As a result, in the short to medium term we should see development banks supporting these projects much more than private sector banks.”
Brazil’s Untapped Potential
Brazil holds the world’s second-largest rare earth reserves after China, according to the US Geological Survey. Yet only a small portion of those resources has been developed.
While China has built a fully integrated processing and refining chain over decades, Brazil still lacks a domestic beneficiation industry, limiting how quickly reserves can be converted into market-ready products.
As geopolitical tensions and supply-chain vulnerabilities continue to reshape the global critical minerals landscape, analysts say the involvement of export credit agencies such as EFA could prove decisive in moving Brazil’s rare earth sector from geological promise to commercial reality.
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