ASX-listed Brazilian Rare Earths has successfully commissioned its Stage 1 metallurgical pilot plant in Camaçari, Brazil, producing its first rare earth concentrate.

The plant will be used for bulk-scale metallurgical testwork for feasibility studies on the Monte Alto rare earth deposit and its planned Camaçari refinery hub.

Brazilian Rare Earths says it has secured co-funding and technical support for a Stage 2 hydrometallurgical plant, which is planned to be commissioned during the second quarter of 2027.

While Stage 1 will provide operating data to refine processing design, equipment selection and cost estimates, Stage 2 piloting will extend the metallurgical programme through hydrometallurgical extraction and separation to produce neodymium and praseodymium (NdPr) oxide, heavy rare earth concentrate and uranium yellowcake.

In particular, the Stage 2 piloting will test and validate uranium, scandium, niobium, titanium and tantalum recovery and commercialisation pathways, assessing the potential to lower net unit costs beyond the scoping study case forecast of $21/kg NdPr-equivalent and deepen the cost advantage.

The company has partnered with Brazilian technology and research institute SENAI CIMATEC on the Stage 2 pilot plant, with SENAI having committed to contribute A$1.7-million of funding for the hydrometallurgical plant. This comprises 59% of the expected capital and operational expenditure of the plant.

Brazilian Rare Earths also remains partnered with French rare earth separation specialist Carester, which will provide separation and execution support toward the planned Camaçari refinery hub before becoming a heavy rare earths offtaker of the hub.

Commenting on the pilot plant milestone, Brazilian Rare Earths CEO Bernardo da Veiga says with the Stage 1 pilot plant having been commissioned, the company can now advance its bulk metallurgical testwork programme that underpins feasibility studies. "First rare earth mineral concentrate production at the pilot plant gives us a platform to test processing options at larger scale and generate the data needed for engineering decisions.

"With SENAI and Carester's continued support and expertise, we are enhancing the technical data needed to advance our integrated rare earth hub-and-spoke processing platform in Brazil."