Brazil's Luanga Palladium Mine Could Move Markets

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Bravo Mining published the pre-feasibility study of its Luanga project, which could become a significant source of palladium in the Americas, with a life of mine CAPEX of US$908.7 million and projected production of palladium, platinum, rhodium, gold, and nickel.

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A Game Changer?

Bravo Mining published the results of its pre-feasibility study (PFS) for the Luanga project in Brazil, which contains deposits of palladium, platinum, rhodium, gold and nickel. Based on the PFS, the project's base case has an after-tax net present value of US$1.45 billion at an 8% discount rate, with total life-of-mine capital expenditures (capex) of US$908.7 million, including US$784.9 million in pre-production capital.

If developed, Luanga will comprise an open pit mine and a concentrator at the site, connected to proposed smelter at the Barcarena export free trade zone (ZPE), located 600 kilometers from the mine.

Luanga would represent a significant new source of palladium production in the Americas. Industrial Info Resources is not tracking any other palladium projects in Brazil.

Additionally, the project is forecasted to generate 150,700 ounces of platinum, 16,100 ounces of rhodium, 18,100 ounces of gold, and 9,800 tonnes of nickel per year.

The project has a projected life of mine of 9.6 years, based on proven and probable mineral reserve of 86.7 million tonnes grading 2.77 g/t palladium equivalent. Palladium will be the mine's largest platinum group metals (PGMs) output, averaging 208,900 ounces per year or 6,497 kilograms.

To put things in perspective, global palladium mine production in 2025, according to the United States Geological Survey (USGS) data, was estimated at 190,000 kg, with 84,000 kg coming from Russia, and another 70,000 kg from South Africa. Based on this comparison, Luanga's projected yearly palladium output would be equivalent to 3.4% of global mine production.

World resources of PGMs, which include palladium, are estimated at more than 100 million kilograms, based on the USGS's latest report.

Industrial Info Resources is tracking five projects related to Luanga, totaling about US$785 million of investment. The three main developments comprise the development and construction of the mine, the development of the concentrator plant, and the construction of a smelter in Barcarena. These are supported by two infrastructure projects: the construction of a tailings storage facility and a transmission line.

Readers can learn more about these projects from a detailed list of project reports.

Brazil's Mining Prospect

More importantly, Luanga's value lies in the proposed integration of the mine with the smelter at the Barcarena ZPE, allowing Bravo Mining to capture more of the value chain through sales of metal alloys and sulphuric acid.

"The project's strong economics, together with the benefits available within the Barcarena ZPE, more than offset the additional capital required for the smelter," said Luis Azevedo, CEO and Chairman of Bravo Mining. "In the global PGM industry, vertical integration through smelting and downstream processing is largely the norm, reflecting the strategic and economic benefits of capturing more of the value chain."

Palladium is predominantly used for catalytic converters in the automobile industry, as well as in electronics, chemical processing, and hydrogen technologies.

Brazil's government of Luiz Inacio Lula da Silva has sought to attract investments for mining and domestic processing across commodities, with a particular emphasis on critical minerals. Recently, Lula signed a new national policy on critical and strategic minerals that authorizes the creation of a guarantee fund of up to 2 billion reais fund (about US$387 million) and provides a tax credit of 5 billion between 2030 and 2034.

Key Takeaways

• Bravo's Luanga Palladium project in Brazil has an estimated after-tax NPV of US$1.45 billion.
• The project's pre-production capex is US$784.9 million.
• Luanga is projected to produce an average of 208,900 ounces of palladium per year.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).