Rare Earths Mine in Brazil Faces Community Opposition
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Rare Earths Mine in Brazil Faces Community Opposition
- An Australian-backed rare earths mining project in Poços de Caldas, Brazil, is encountering significant community and political opposition due to its proximity to residential areas, schools, and hospitals.
- Local lawmakers and community leaders, including Poços de Caldas City Council President Douglas Souza, have raised concerns about potential environmental impacts, particularly regarding water supply and contamination.
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An Australian-listed company, Viridis Mining, is developing the Colossus Rare Earth Project in Poços de Caldas, Minas Gerais, Brazil. The project, which aims to extract rare earth elements vital for electric vehicles and advanced electronics, has an estimated resource of 493 million tonnes. Viridis Mining submitted an Installation Licence application for the project in May 2026, targeting first production in 2028.
However, the project faces considerable backlash from local communities and lawmakers. Concerns center on the planned mining and processing operations being located approximately 300 meters from residential areas, schools, and hospitals. Community groups have called for independent environmental reviews, citing worries about potential impacts on water sources and airborne dust. The Poços de Caldas region faced severe water shortages in 2024, leading to questions about how mining operations would affect water security, especially since Viridis’s own environmental impact study acknowledges a “significant” drought risk projected to intensify between 2030 and 2050.
In November 2025, the Brazilian prosecutor’s office recommended suspending the environmental licensing processes for both the Colossus project and another rare earth project in the region, citing the need for additional studies and consultations to clarify environmental and social risks. Despite municipal support for land use for a processing facility, community opposition to the overall project persists. Viridis Mining has stated that its environmental strategy includes water recirculation systems and inert waste backfilling, but independent verification of these measures has been requested by community groups. The company is also in discussions with potential buyers in Europe and the US, aiming to supply Western markets and reduce dependence on China.