Mosaic Fertilizantes P&K Limitada, a subsidiary of The Mosaic Company (NYSE: MOS), and Rainbow Rare Earths Limited have completed a preliminary economic assessment and entered into a joint development agreement for the Uberaba rare earths project in Minas Gerais, Brazil.

The companies plan to jointly pursue a prefeasibility study, with the intention to progress to a definitive feasibility study targeted for later in 2026, subject to favorable results. If both studies prove positive, the parties would negotiate definitive agreements for a jointly owned project company, with construction of a processing facility in Uberaba targeted to start in 2027.

The economic assessment completed in February indicates the contemplated onsite processing facility would treat approximately 2.7 million tonnes per year of phosphogypsum, producing 1,900 tonnes of separated neodymium and praseodymium oxide, and 600 tonnes of a samarium, europium, and gadolinium product rich in medium and heavy rare earth elements.

Using pricing assumptions aligned with current spot markets, the project is expected to deliver an internal rate of return above the hurdle rate and a relatively short payback period. Initial production is targeted for 2030, subject to further studies, regulatory approvals, financing arrangements, investment decisions, and successful project execution.

"The Uberaba project brings together Mosaic's Brazilian operations with Rainbow's rare earth expertise," said Bruce Bodine, President and Chief Executive Officer of Mosaic. "Together, we will evaluate the responsible recovery of critical materials from our existing phosphate operations."

Rainbow Rare Earths is a London Stock Exchange-listed company that specializes in recovering rare earth elements from phosphogypsum, a byproduct of fertilizer production. The information is based on a company press release.