Brazilian Critical Minerals buys 90% of magnesium sulphate maker to feed rare earth project
What's the deal? Brazilian Critical MineralsDealroom has a profile for this one. Try Dealroom → (BCM) has signed a binding agreement to acquire a 90% stake in Sais NordesteDealroom has a profile for this one. Try Dealroom →, a magnesium sulphate producer in Feira de Santana, Bahia, Brazil. The deal, struck through wholly owned subsidiary Mineração BBX do Brasil, carries an undisclosed value.
Why it matters: Magnesium sulphate is the primary leaching reagent for BCM's Ema Rare Earth Project, which uses an in-situ recovery process to extract rare earth elements from ionic adsorption clay. Owning the supply secures a critical input.
The details: The transaction bundles three agreements: the 90% purchase plus local Brazilian supply contracts for magnesium oxide and sulphuric acid, the main raw materials. Sais Nordeste, which brings over 50 years of production experience, has been on care and maintenance since February 2026.
What's the endgame? Initial output is projected to meet about 50% of the Ema Project's magnesium sulphate needs, with potential to exceed 100% of forecast demand. BCM plans to produce Mixed Rare Earth Carbonate at Ema for a separation and refining industry being built outside China.
What could go wrong? The plant is idle and carries legacy liabilities. BCM will immediately fund and manage a financial and operational restructuring, with formal ownership transferring only once agreed conditions precedent and approvals are satisfied.
Managing director Andrew Reid said BCM will work closely with Sais Nordeste throughout the restructuring to ensure "a return to sustainable commercial operations."
The signal: By securing domestic reagent production, BCM reduces its reliance on Chinese supply chains — a priority for Western rare earth developers aiming to build processing capacity beyond China.
Read more: kalkinemedia.com
Image credit: Carol M Highsmith
