Minacu, in Brazil, will produce four rare earths on a commercial scale, marking a significant movement in global supply dynamics. Historically dominated by China, which controls 90% of rare-earth magnets, the sector has faced challenges due to Chinese export restrictions. Brazil, with the second-largest known rare earth reserves, is positioning itself as a strategic alternative. The Brazilian government is investing heavily in related mineral projects, while Minacu's mining operations start in 2024, following the ban of asbestos mining due to health concerns. The area is shifting its economic focus from asbestos to rare earth production.
Minacu, a small city in inland Brazil, is set to become the first operation outside Asia to produce four rare earths on a commercial scale. This marks a pivotal development amid escalating trade disputes between China and the US, particularly since China has historically dominated the production of these essential minerals.
The Brazilian government is proactively stimulating the sector with an investment forecast of 5 billion reals (approximately 670 million) in projects focused on the supply of strategic minerals, marking Brazil as a leading alternative to China's dominance in rare earths.
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