Brazilian Lawmakers Challenge $2.8 Billion Sale of Rare Earth Mine to U.S. Company
Lawmakers from Brazil's Socialism and Liberty Party (PSOL) have filed a complaint with the Office of the Prosecutor General (PGR) to annul the sale of the Serra Verde mining company to USA Rare Earth. The transaction, valued at approximately $2.8 billion, involves the acquisition of the Pela Ema mine in Goias, Brazil, which is the only large-scale producer outside Asia of four rare earth magnetic elements. These elements are crucial for advanced technologies, including electric vehicles, semiconductors, and defense systems. The legislators, including Samia Bomfim, Fernanda Melchionna, and Glauber Braga, argue that the sale could threaten Brazil's economic sovereignty by transferring a strategic company in the rare earth sector to foreign ownership. They have requested the immediate suspension of all contracts and payments related to the deal and called for an investigation into the actions of former Goias Governor Ronaldo Caiado, citing potential overreach and favoritism. 
