Brazil's Goiás State Seeks World Bank Backing for Mining and Rare Earth Projects

The government of Goiás, Brazil, has signed a cooperation agreement with the World Bank and Fundación Chile to drive international investment and technical modernization within its mining sector. This initiative focuses on transitioning the state from a raw material exporter to a producer of high-value mineral technology, particularly within the rare earth elements segment. The partnership is expected to catalyze the development of the critical minerals chain by aligning state resources with global financing and sustainable mining practices.

The agreement, signed by State Secretary of Industry, Commerce and Services Joel Sant'Anna, facilitates an upcoming international mission to Goiás involving investment funds, mineral innovation specialists, and major industry players. This collaboration aims to leverage the World Bank’s expertise in governance, innovation, and technical training to add value to the state's mineral production. According to Sant'Anna, the goal is to transform Goiás’s vast mineral resources into knowledge-based industries and skilled jobs, moving beyond the simple extraction and export of raw materials.

The state’s rare earth potential has already attracted significant private capital, including a $2.8 billion deal by USA Rare Earth (USAR) to acquire Serra Verde and its Pela Ema mine, which includes a 15-year exclusive offtake agreement. Furthermore, Canadian company Aclara Resources is developing the Carina rare earths project in the state with an estimated capital expenditure of $780 million. These projects highlight the increasing global relevance of Goiás as a strategic source for critical minerals necessary for high-tech and green energy applications.

To support these large-scale investments, the World Bank is implementing a country-led approach that includes legal and regulatory reforms, infrastructure planning, and risk mitigation. Namrata Thapar, the World Bank’s director for metals and minerals, stated that the organization is focused on making responsible projects more bankable through technical assistance and the mobilization of private capital. A priority area for the partnership will be human capital development, addressing concerns raised by Aclara Resources CEO Ramón Barúa Costa regarding the scarcity of specialized labor needed to operate the advanced technologies required for modern rare earth extraction.