According to Mining Weekly (June 2023), countries like Brazil, Chile, and Colombia have seen a significant increase in foreign capital for rare earth exploration, aiming to diversify global supply and reduce dependence on China. These nations have untapped geological potential and increasingly focused policies to attract foreign direct investment.
For investors, South America’s main competitive advantage lies in its abundance of resources and the growing willingness of local governments to create favorable conditions for the exploitation of strategic minerals. However, the success of these projects largely depends on the ability to develop local value chains, which requires skilled labor, cutting-edge technology, and the implementation of responsible environmental and social practices.
Political volatility and the need to respect the rights of indigenous communities and biodiversity are factors that may affect project timelines and costs. However, investors who take a long-term view and adopt a sustainability approach have the opportunity to achieve attractive returns in a rapidly expanding market.
Source:
• Mining Weekly, “Rare Earth Projects in South America Attract Global Investment,” June 2023.
