The financing of (a) improvements to a brownfield rare earths mine located in the state of Goiás (the “Pela ema mine”) in Brazil, (b) operational expenses, (c) refinancing of existing shareholder debt, and (d) reserve accounts and other transaction costs.

Despite being home to the world’s second-largest rare earth mineral reserves, Brazil has seen declining rare earth mine production over the past decade, with only 20 metric tons of Total Rare Earth Oxide (“TREO”) produced in 2024 compared to a 2016 peak of 2,200 metric tons. Brazil currently represents less than 1% of global rare earth exports, and rare earth mining and processing therefore has significant potential for new local income and employment while diversifying global rare earth supply chains.

In response to these challenges, the Project is expected to have a positive development impact in Brazil through financing improvements to a brownfield rare earths mine, which will be the first significant producer of heavy rare earths outside of China. This site has significant potential, with a 2025 market study finding that the Pela Ema mine could produce 10% of global supply of heavy rare earth ores over its lifetime. The mine’s primary product is expected to be Mixed Rare Earth Carbonate (“MREC”), an intermediate product that is sold to midstream market offtakers for refinement into individual rare earth metals. Improvements to metallurgic recovery and product quality are intended to increase the TREO content in the mine’s MREC, a key determinant of market value. By 2029, MREC production volume is expected to reach 4,600 tons per annum TREO, supporting an anticipated $589 million in annual exports and 175 new direct jobs. Contributions to local income are expected to be substantial, exceeding $400 million over the next five years. Additionally, the Project will support broader local economic growth through its supply chains, which are expected to include Brazilian small and medium enterprises. Given the Project’s characteristics, it is expected to be categorized as Highly Impactful per DFC’s Impact Quotient pending final environmental and social risk deductions.

DFC

ACCESS TO INFORMATION

Unlike many other development finance institutions, DFC does not currently have an access to information policy.

Under the United States Freedom of Information Act (FOIA), DFC is obliged to respond to reasonably formulated requests for Agency records. However, DFC may apply exemptions from release to certain types of information and may charge fees in responding to requests. DFC has a designated FOIA officer who is trained in how to respond to requests and implement the law. You can learn more about filing a FOIA request at: https://www.dfc.gov/foia.

ACCOUNTABILITY MECHANISM OF THE UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION (DFC)

The Office of Accountability is an independent office that addresses complaints about environmental or social issues related to DFC-supported projects. The office provides communities an opportunity to have concerns independently reviewed and addressed. If you submit a complaint to the Office of Accountability, it may assist you by either seeking to address your problems by facilitating a problem solving dialogue between you and those implementing the project and/or investigating whether the DFC complied with its policies to prevent environmental, social, human rights, and labor harms. 

You can find more information about the Office of Accountability at: https://www.dfc.gov/who-we-are/office-accountability.