South America is developing a broader industrial relationship with Europe across lithium, copper, nickel, cobalt and rare earths, with European companies, London-listed miners and specialist processors taking positions in projects from Brazil to Argentina, Chile, Colombia and Ecuador. However, major construction financing remains dominated by multilateral lenders, Asian export-credit agencies and North American strategic investors.
Brazil has the clearest emerging connection between South American mineral production and European downstream processing. Viridis Mining and Minerals has commissioned a pilot research and processing facility for the Colossus rare-earth project in Minas Gerais and is planning a commercial plant requiring approximately US$360–400 million.
The proposed operation is targeting 15,000 tonnes a year of mixed rare-earth carbonate from 2028, including neodymium, praseodymium, dysprosium and terbium. In June, Viridis signed a letter of intent with Belgian chemicals group Solvay, under which Brazilian feedstock would be supplied to Solvay’s La Rochelle separation plant in France. Solvay would provide separation technology and processing expertise.
Brazilian rare earths and European separation
La Rochelle is scheduled to begin industrial-scale separation of dysprosium and terbium in September 2026 and is targeting 30% of Europe’s magnet-grade rare-earth market by 2030. The Viridis-Solvay arrangement is not yet a binding offtake agreement, but it represents the most advanced new Brazil-to-Europe rare-earth processing route described in the source.
Viridis is seeking financing for the commercial facility. The pilot plant has demonstrated production of mixed carbonate, while the commercial financing process requires a bankable purchase agreement with Solvay, confirmation of product specifications and clarity regarding how processing value will be divided between Brazil and France. The EU has identified Colossus as one of four priority areas in its emerging minerals partnership with Brazil, although no binding EU construction-finance commitment has been announced.
Brazil also hosts the São Miguel Paulista nickel and cobalt refinery, owned by Jervois, which is the only South American project currently designated as strategic under the EU Critical Raw Materials Act. Refurbishment began following investment approval in late 2025, with construction and recommissioning scheduled to progress through 2026–27.
The refinery is designed to process imported mixed hydroxide precipitate and cobalt hydroxide into approximately 12,000 tonnes of Class 1 nickel cathode and 2,000 tonnes of cobalt cathode annually. Jervois also operates cobalt-refining and specialty-products facilities in Kokkola, Finland, creating potential for coordinated feed procurement and product marketing between Brazil and Europe. Operational ramp-up is forecast during 2027. São Miguel Paulista also demonstrates the financing challenges facing strategic mineral projects. Its earlier restart was repeatedly delayed during the nickel and cobalt downturn while Jervois underwent financial restructuring. EU strategic designation provides greater visibility and potential buyer access, but does not replace feedstock agreements, working capital or sustainable margins between intermediate and refined products.
Rare-earth development and Brazilian mining finance
Another Brazilian rare-earth development, Aclara Resources’ Carina project in Goiás, completed its feasibility study in April. The study established an after-tax net present value of approximately US$1.7 billion for an ionic-clay operation producing mixed rare-earth carbonate. Aclara plans to combine Brazilian extraction with a separation facility in Louisiana and maintains a strategic alliance with German permanent-magnet producer Vacuumschmelze (VAC). The Aclara-VAC relationship is intended to connect Brazilian and Chilean heavy rare earths with German magnet technology and industrial customers.
Carina’s financing is more closely aligned with the United States, including development support from the US International Development Finance Corporation. VAC nevertheless provides a defined European downstream route for dysprosium- and terbium-bearing products. Construction funding and binding offtake agreements remain outstanding. European capital markets are also supporting conventional Brazilian mine development. London-based Meridian Mining joined the London Stock Exchange’s Main Market in May and raised approximately £22.5 million through its first UK institutional placing, following a C$57.5 million financing earlier in 2026.
The proceeds are advancing the Cabaçal gold-copper project in Mato Grosso. Its pre-feasibility study estimated initial capital expenditure of US$248 million, an after-tax net present value of US$984 million, an internal rate of return of 61.2%, and average production of approximately 141,000 gold-equivalent ounces per year over ten years. Meridian’s definitive feasibility study is approximately halfway complete and is scheduled for the fourth quarter of 2026. The company has also submitted its installation-licence application. London-market financing has therefore supported feasibility work and early equipment commitments, while the larger construction-financing package remains to be arranged.
Argentine lithium projects move toward production
Argentina contains the largest European-operated lithium asset described in the source to have entered industrial ramp-up. France’s Eramet produced 3,720 tonnes of lithium carbonate at its Centenario-Ratones direct-lithium-extraction operation during the first quarter. The plant reached nearly 80% of nameplate capacity in March and is targeting 17,000–20,000 tonnes of lithium carbonate in 2026, compared with design capacity of 24,000 tonnes a year. First-phase development required approximately US$870 million.
Centenario-Ratones has particular relevance for European supply because Eramet controls both the resource and its proprietary DLE technology, reducing reliance on Chinese process licensors. The remaining technical test is consistent battery-grade production at full throughput. A second phase would require another substantial capital commitment and has not received an unconditional construction decision.
Rio Tinto’s Rincón project in Salta represents the largest recent lithium financing in the region. The London-listed group secured a US$1.175 billion financing package for the US$2.5 billion development, including a US$400 million IFC loan alongside funding from IDB Invest and Australian and Japanese export-credit agencies. Rincón is designed to produce approximately 60,000 tonnes of battery-grade lithium carbonate annually and has already completed its first commercial shipment. Despite Rio Tinto’s London-market presence, none of the disclosed project lenders is European, highlighting the continued role of multilateral and Asian public finance in South American construction projects.
Glencore advances Argentine copper portfolio
Swiss-based Glencore is preparing a major copper portfolio in Argentina. The company plans to restart Alumbrera during the fourth quarter of 2026, with first production expected in the first half of 2028. The four-year restart programme could deliver approximately 75,000 tonnes of copper, 317,000 ounces of gold and 1,000 tonnes of molybdenum once fully operational. Alumbrera also provides infrastructure for the longer-term Agua Rica development.
Glencore has submitted applications under Argentina’s RIGI investment regime for approximately US$4 billion at Agua Rica and US$9.5 billion for the first phase of El Pachón. Both projects remain in feasibility and development, so the stated investment amounts do not represent committed construction capital.
Chile combines lithium development and major copper expansion
In Chile, London-listed CleanTech Lithium has completed a pre-feasibility study for its Laguna Verde direct-lithium-extraction project. The development is designed for annual production of 15,000 tonnes of battery-grade lithium carbonate for 25 years, with initial capital estimated at approximately US$748 million. The study puts operating costs at US$5,768 per tonne and estimates an after-tax net present value of approximately US$960 million. CleanTech has agreed the principal terms for a special lithium operating contract with the Chilean government and appointed London-based Cutfield Freeman to secure a strategic partner and structure development financing.
A June equity raise is funding licence costs, environmental work and further DLE optimisation. The financing remains small compared with the capital required for construction, leaving Laguna Verde dependent on a strategic partner and project financing.
Europe’s largest direct financing exposure to a Chilean processing development is associated with Antofagasta’s Centinela Second Concentrator. The US$4.4 billion expansion is expected to add approximately 144,000 tonnes of copper, 130,000 ounces of gold and 3,500 tonnes of molybdenum annually. Construction is scheduled for completion in 2027. Centinela has secured US$2.5 billion in project debt, including a US$150 million participation by Germany’s KfW IPEX-Bank. Mechanical installation, power infrastructure and seawater systems were progressing during the first half of 2026. The project uses renewable electricity and raw seawater.
Exploration advances in Chile and Colombia
At the exploration stage in Chile, AIM-listed Great Southern Copper has completed 17 reverse-circulation holes covering 2,474 metres at the Especularita project. Drilling at Piedras Blancas, Artemisa North, Victoria and Artemisa South intersected alteration interpreted as consistent with outer zones of a porphyry copper system. Assay results remain pending, meaning the programme has established geological evidence rather than a defined mineral resource or development case.
In Colombia, AIM- and Toronto-listed Orosur Mining reported a significant exploration result from the Anzá gold project. Hole MAP107 at the APTA prospect returned approximately 135.5 metres grading 1.91 grams of gold per tonne, including 49 metres at 4.06 grams per tonne. The hole ended in mineralisation despite difficult drilling conditions. Anzá contains a maiden Pepas resource of 1.14 million tonnes grading 5.46 grams of gold per tonne, equivalent to approximately 201,000 ounces of gold in the indicated category. Orosur raised C$20 million in late 2025 to fund the current exploration programme. The company is moving drilling east to test shallower mineralisation at APTA, while the project remains several stages away from mine studies or construction financing.
Ecuador’s Cascabel advances through project financing
Ecuador’s largest London-linked development is SolGold’s Cascabel copper-gold project. SolGold has secured a conditional US$750 million gold-stream package from Franco-Nevada and Osisko. The package includes US$100 million for studies and permitting and a further US$650 million for construction, conditional on feasibility, permits and the remaining financing being secured. The revised development strategy calls for early open-pit production from Tandayama-América, followed by underground production from Alpala, with first output targeted for 2028.
The stream represents approximately 42% of the previously estimated development cost and transfers part of Cascabel’s future gold production to the financiers. Remaining debt and equity requirements, construction scheduling and permitting milestones remain key elements of the development process.
EU and IDB programme covers five South American markets
At policy level, the EU and Inter-American Development Bank have established a programme covering Argentina, Bolivia, Brazil, Chile and Ecuador. A €6.3 million EU grant is intended to mobilise another €120 million of IDB investment for geological knowledge, governance, extraction and critical-mineral value chains. The programme is aimed at project preparation and risk reduction, while its funding scale remains below the multibillion-dollar capital requirements associated with major copper and lithium developments.
The most developed South America-Europe supply-chain connection is in Brazilian rare earths, where domestic mixed-carbonate production can supply French separation and German magnet manufacturing. European companies also maintain substantial operating positions in Argentine lithium and copper, while London remains a financing market for developers in Brazil, Chile, Colombia and Ecuador.
European public-sector participation remains limited relative to US, Japanese, Australian and multilateral commitments, with KfW’s US$150 million participation at Centinela and the EU strategic designation of São Miguel Paulista representing the principal examples identified in the source. European companies have established corporate and technology positions across South American mineral projects, while other governments and multilateral institutions continue to provide much of the capital required to advance resources into mines and refineries.
