Brazil party asks court to halt rare earths miner’s sale

Left-wing Brazilian political party Rede Sustentabilidade asked the country’s Supreme Court to suspend the sale of mining company Serra Verde Group to USA Rare Earth Inc on national security grounds.

In a filing submitted on Friday, the party argued that Brazilian legislation doesn’t provide sufficient safeguards for the national interest as required by the Constitution in the exploitation of strategic mineral resources. The party said that no transaction should be carried out that could directly or indirectly transfer significant economic control over the country’s strategic mineral assets.

USA Rare Earth offered $2.8 billion in cash and stock for Serra Verde, which would mark one of the largest transactions in the rare earths industry to date.

Serra Verde’s Pela Ema operation in Goiás is being upgraded and currently produces about 100 metric tons of rare earth oxides per year. Output is expected to rise significantly, reaching around 6,400 tons annually by the end of next year.

Serra Verde’s press office declined to comment. USA Rare Earth didn’t immediately respond to a request for comment outside of normal business hours.

(By Daniel Carvalho)