Brazilian Rare Earths Limited (ASX:BRE) has cleared its last regulatory hurdle to begin pilot operations at its rare earth beneficiation and hydrometallurgy plant within the Camaçari Petrochemical Complex located in Bahia, Brazil, with operations expected to commence in mid-2026.

The company says this marks a decisive step in moving from discovery to development in a market where demand for rare earth elements continues to grow.

“Selecting Camaçari was a deliberate choice. Brazil’s largest petrochemical and industrial complex brings coordinated permitting, world-class infrastructure and a skilled workforce, all of which shorten timelines and lower risk,” said BRE Managing Director and CEO, Bernardo da Veiga.

Secure Permit Strengthens Rare Earth Push

Brazil’s National Authority on Nuclear Safety (ANSN) has issued BRE with final operating authorisation for its pilot plant and laboratory facility inside the Camaçari Petrochemical Complex, a site about 260 kilometres northeast of the company’s Monte Alto Project.

The approval is significant, as ANSN regulates nuclear-related components to the highest safety standards. Without this authorisation, pilot operations would not have been possible.

“This Federal authorisation highlights our strong government engagement and confirms we can operate to the highest safety standards as we move decisively from rare earth discovery to development,” said Mr da Veiga.

Pilot Plant to Define Pathways

The pilot facility will focus on optimising beneficiation and hydrometallurgy pathways for BRE’s high-grade and ultra-high-grade rare earth mineralisation. It will also confirm key technical parameters and support the company’s downstream separation process work.

In practical terms, this means the plant is a crucial testing ground before moving toward potential large-scale commercial production.

Location Brings Industrial Advantages

BRE highlights that Camaçari is more than just a location – it is Brazil’s largest petrochemical and industrial complex. This setting provides several operational benefits:

• Regulatory certainty through mature oversight of advanced chemical and metallurgical businesses
• Streamlined permitting processes across Federal and State agencies
• World-class infrastructure, including utilities, transport links, and power
• Cost efficiencies with nearby suppliers of reagents and chemicals
• Skilled workforce experienced in industrial operations

The combination of infrastructure and cost advantages is expected to enhance BRE’s competitiveness when scaling up.

Looking Ahead

The pilot plant is expected to begin operations in mid-2026, marking a key milestone for BRE’s long-term rare earths strategy. With growing demand for rare earths in clean energy, defence, and high-tech applications, the company is positioning itself to play a larger role in the supply chain.

As Mr da Veiga noted, the decision to locate at Camaçari reflects BRE’s emphasis on shortening timelines and lowering development risk while maintaining the highest safety standards.