U.S. company buys the only non-Asian mine that has large quantities of 4 rare elements.

Lawmakers from the Socialism and Liberty Party (PSOL) filed a complaint with the Office of the Prosecutor General (PGR) seeking the annulment of the sale of the Serra Verde mining company to USA Rare Earth, a transaction valued at approximately US$2.8 billion.

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Legislators Samia Bomfim, Fernanda Melchionna, and Glauber Braga questioned the legality of the acquisition and requested the immediate suspension of all contracts, payments and acts related to the negotiation.

According to the document submitted to the PGR, the transaction could represent a threat to Brazil’s economic sovereignty, as it involves the transfer of a strategic company in the rare earth sector to foreign capital.

Announced on April 20, the sale includes the acquisition of the Serra Verde Group mining company, owner of the Pela Ema mine, located in the state of Goias.

This facility is considered the only large-scale producer outside Asia of four rare earth magnetic elements, essential for advanced technologies such as electric vehicles, semiconductors, and defense systems.

PSOL lawmakers also called for an investigation into the actions of former Goias Governor Ronaldo Caiado, a far-right politician seeking to reach the presidency of Brazil.

The legislators argue there may have been overreach in his administrative powers and possible favoritism toward the export of strategic minerals.

PSOL politicians requested that the prosecutor’s office evaluate referring the case to the Supreme Federal Court to analyze the constitutionality of the transaction and determine any potential civil and criminal liabilities.

Rare earth elements are a key geopolitical resource due to their use in technological and military industries. Currently, more than 90% of global production is concentrated in Asia, increasing international competition for control of these critical minerals.

“The race to break China’s rare earth dominance is accelerating. With Serra Verde now in U.S. hands, the remaining Brazilian rare earth projects come into sharper focus: Viridis Mining & Minerals highest grade IAC project in Latin America. Meteoric Resources oversubscribed A$40M cap raise at no discount this week. Brazilian Rare Earths one of the most advanced rare earth developers remaining in Brazil,” Thematica Funds commented on X.

teleSUR/ JF

Sources: teleSUR – Thematica

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