Rare Earth Rush: Over 100 Mining Requests for Volcanic Crater Deposit

A rare earth deposit discovered in the crater of an extinct volcano in Poços de Caldas, Brazil, has triggered a surge in mining interest. The 800 km² area, rich in clay containing rare earth ions, has drawn over 100 research requests since 2023, following Australian investments. The deposit, capable of meeting 20% of global demand, is considered a mining ’unicorn’ due to its size and shallow depth.

The National Mining Agency (ANM) has seen a flurry of applications, with companies probing surrounding municipalities like Andradas and Águas da Prata. Geologists suggest lava flows may have spread minerals beyond the crater, expanding potential exploration zones. However, only a fraction of research permits advance to full-scale mining, as many applicants miss deadlines or delay processes.

Not all permit seekers intend to mine; some, like Rafael Cruz de Oliveira’s RCO Mineração, specialize in selling exploration rights to larger firms. With rare earths critical for tech and energy sectors, the discovery has intensified global competition, including U.S. interest in securing Brazilian supplies.

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