BRE and Rio Tinto Revise Gallium Mining Deal in Brazil

Rio Tinto Brazil Mining

High-Grade Gallium Discovery Reshapes Amargosa Bauxite Project

Brazilian Rare Earths (BRE) and Rio Tinto have renegotiated their 2023 agreement for the Amargosa bauxite project in Brazil following a major gallium discovery. BRE reported uncovering one of the world’s highest-grade gallium prospects at the site, significantly enhancing the project's strategic value. As a result, the revised deal replaces a $40mn payout with a $1/wet tonne royalty on all future bauxite sales.

The updated terms also remove Rio Tinto’s right of first refusal on bauxite, giving BRE full commercial control over future output. BRE now plans to scale up operations to extract both gallium and bauxite simultaneously, citing urgency due to China’s export restrictions and U.S. tariff policy under Trump.

Gallium Gains Strategic Importance Amid Trade Tensions

Gallium has emerged as a critical mineral for electronics, defense, and green technologies, making the Amargosa site geopolitically significant. Meanwhile, China has tightened its export controls on gallium, while the U.S. continues to impose trade barriers that affect global critical mineral flows. BRE’s entry into the gallium market could diversify supply chains and reduce Western dependence on Chinese sources.

The Metalnomist Commentary

The Amargosa revision shows how geopolitical shifts reshape mineral markets overnight. BRE’s gallium find could fast-track Brazil’s role in critical mineral supply chains.