Brazilian Nickel seeks anchor investor for $1.4 billion mine

Brazilian Nickel Ltd. is seeking an anchor investor to help attract more equity funding for its planned $1.4 billion nickel and cobalt mine in northeastern Brazil.

The developer of the Piauí nickel project is using Rothschild & Co. as an adviser for global debt and equity financing while Brazilian investment bank Bradesco BBI is advising for raising $100 million among investors and funds within the South American nation, chief financial officer Andre Simao said in a Monday interview. The company also seeks government funding from Canada, Europe and the Brazilian development bank, BNDES, Simao said.

The fundraising comes as governments around the world seek to develop a stable supply chain of metals key to the clean energy transition, with prices for battery materials improving following heightened geopolitical tensions and growing supply uncertainties in major producing countries.

The nickel sector in Indonesia, which accounts for over half of the global production, is grappling with mining quota cuts and higher costs. Meanwhile, cobalt prices have surged more than 160% since last year after the export control from top supplier Democratic Republic of Congo.

Brazilian Nickel has already received attention from international agencies, as Western nations seek to build their own critical minerals supply chains to counter China’s dominance. The closely held firm received a letter from the US International Development Finance Corporation in 2024 expressing interest in backing the project.

Canada’s export credit agency may provide $275 million in debt financing and critical minerals royalty company Ecora Royalties Plc may provide approximately $62 million in loans, the CFO said.

Simao said Piauí Nickel needs an anchor equity investor such as BNDES, DFC or the European Commission to make the first move so Brazilian Nickel can attract smaller investments from funds in São Paulo, London and New York.

Brazilian Nickel, which is backed by critical minerals investment firm TechMet Ltd., aims to produce 28,000 tons of nickel and 1,000 tons of cobalt a year across the first 10 years of operation, with production planned to start in the first half of 2030, according to Simao.

(By Mariana Durao and Annie Lee)