Brazilian Rare Earths has announced its intention to demerge its 100%-owned Amargosa Bauxite–Gallium Project into a newly formed ASX-listed company, Alurion Resources, allowing BRE to focus on rare earths while Alurion advances bauxite development with a 568 Mt JORC resource and a scoping study showing US$630m NPV8.
Brazilian Rare Earths Limited has announced its intention to demerge its 100% owned Amargosa Bauxite-Gallium Project into a newly formed ASX-listed company, Alurion Resources Limited (ALU), according to official disclosures. The demerger will establish Alurion as a dedicated bauxite and critical minerals development company with its own board, management, and capital structure.
BRE shareholders are expected to receive in-specie Alurion shares, while BRE intends to retain a strategic shareholding of approximately 17%–18% post-IPO.
This development matters because Amargosa hosts a 568 Mt JORC Mineral Resource Estimate, including 98 Mt of direct-ship bauxite grading 41.9% Total Available Alumina (TAA) and 2.5% reactive silica, competitive with Guinean benchmark metallurgical bauxite. A scoping study at spot pricing of US$71/dmt (CIF China) reported an after-tax NPV8 of US$630 million, IRR of 82%, and 1.2-year payback, with initial capex of US$119 million including 35% contingency.
The project is located approximately 160 km by road from the Port of Enseada, an established bulk-export facility in Brazil. Industries impacted include bauxite mining, alumina refining, and gallium production.
Regional stakeholders include Brazilian mining authorities, port operators, and seaborne bauxite buyers.
For investors, the demerger allows capital discipline: Alurion can raise and deploy capital directly into Amargosa’s bauxite development without competing with BRE’s rare earth priorities. Guinea currently supplies approximately 70% of China’s imported bauxite, highlighting strategic demand for new supply from reliable jurisdictions like Brazil.
Brazilian Rare Earths is an Australian-listed exploration and development company focused on rare earth and critical minerals in Brazil.
Amargosa is a bauxite–gallium project with established mineral resources and a direct-ship bauxite development pathway.
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