Rare earths developer Aclara Resources (TSX: ARA) plans to apply for a crucial environmental permit early next year for its flagship rare earth project in Brazil, with the goal of starting production in 2027—two years ahead of the initial schedule.
The company said the Carina deposit, in the state of Goiás, could generate 191 tonnes a year of dysprosium (Dy) and terbium (Tb), which are heavy rare earths used in electric vehicle (EV) manufacturing.
Aclara, which updated this week the preliminary economic assessment (PEA) for regolith-hosted ion adsorption clay project, now pegs the project’s net present value at $1.5 billion, using an 8% discount rate, and an internal rate of return (IRR) of 27% over the 22-year mine life.
Initial capital costs are estimated at $593 million, with low sustaining costs of $86 million.
The project is forecast to generate $505 million in annual net revenue and $366 million in EBITDA.
Chief executive officer Ramón Barua told Reuters that once in operations, Carina’s production would represent about 13% of China’s 2023 output for these materials.
The Toronto-based company, with offices in Chile and Brazil, is progressing faster than expected on the Carina project, originally slated for production in 2029. Aclara’s has gained momentum mostly thanks to agreements with both state and local governments to expedite the permitting process.
If the necessary approvals are granted within 18 months, as anticipated, production could begin as early as 2027, or possibly in 2028, Barua said in the interview with Reuters.
Aclara’s extraction process reduces its environmental impact by eliminating the need for explosives and milling. The company recycles 95% of its water and uses common fertilizers, leaving no liquid waste that would require tailings dams.
For the rest of the year and next, Aclara plans to conduct additional drilling and metallurgical studies to support a pre-feasibility study and the construction of a pilot plant.
Brazil, which holds the world’s third-largest rare earth reserves, is becoming a hotspot for early-stage projects as Western nations seek to reduce their dependence on China for critical elements in the supply chain.
In addition to the Carina project, Aclara is also pursuing environmental approvals for a smaller deposit in Chile, known as Penco, which is expected to follow a similar 18-month approval timeline.
Located in the southern Bío-Bío region, Penco is backed by Chilean conglomerate CAP SA and covers a 6-sq.-km area hosting an ionic clay deposit rich in heavy rare earths. Measured and indicated resources total 27.5 million tonnes, grading 2,292 parts per million total rare earth oxides (TREO), for 62,900 tonnes of contained TREO.
The planned project doesn’t have a tailings facility for waste. After processing, Aclara plans to place washed clays into deposition zones and revegetate them.
(With files from Reuters)
