For it’s Chile Mining 2023 edition, Global Business Reports sat down with Ramón Barua Costa, CEO of South America-focused rare earth developer Aclara Resources to discuss its Penco Module project.
GBR: Can you describe recent highlights for the company?
Barua Costa: We are in the early stages of the Penco Module project, having yet to start operations, but we have made significant progress on different fronts. Last year, we were able to expand the resource quite significantly. When we did the IPO in December of 2021, we had completed a PEA, and now we have started turning that PEA into a feasibility study that will be ready for Q1 2024.
In the meantime, we are also building a pilot plant that will be helpful in demonstrating that our innovative process works and confirming our previously obtained lab results. It will also help produce the samples that we will send to concentrate separators worldwide to engage in more meaningful commercial agreements.
GBR: How is Aclara aligned with social and regulatory environmental expectations?
Barua Costa: We have completely redone our environmental baselines, reinforcing them substantially to refile the EIA permit in April of this year. We also made significant changes to a previous project, and I want to highlight our water sourcing. We have been able to recirculate 95% of the water in the process. We will obtain the remaining 5% from municipal wastewater that has been treated by a local water utility.
Our process is also environmentally friendly in that we do not use explosives. There is also no crushing, milling or tailings dam because the process does not create liquid or solid residue. We will also be able to recirculate 99% of the ammonium sulfate, which is our single most important reagent. The mine closure process is also crucial, and we have committed to revegetating the closed areas as we move forward with native species of trees and flora. Lastly, we are engaging with the community to carry out an open dialogue.
We will be intentional about generating local employment. This dialogue has also been carried out with authorities in Chile. Aclara Resources has presented to the mining commission of the Senate and had meetings with several ministers, including Minister Marcela Hernando, demonstrating our clean way to extract rare earth metals.
GBR: What differentiates Aclara from other rare earth projects?
Barua Costa: This project is unique. There is no other deposit with the same features; ours has three distinct characteristics. The first is that the metallurgy is extremely simple, and the rare earths can be extracted by having the clays react with water and ammonium sulfate, a common fertilizer. Therefore, extracting the rare earths is efficient, sustainable, and requires a low capex. The second advantage is that not all rare earths are created equal.
The most expensive ones have the most critical applications, and in this case, these are the rare earths that are used in the fight against climate change. Our clays contain these. The third characteristic is that the process does not generate a radioactive product or waste. Based on this unique deposit, we have developed a process patented in Chile, Brazil, the US, and even China. The process was awarded sustainable initiative of the year by Business Intelligence Group.
GBR: What role do rare earths play in the green transition?
In an electric revolution, we will try to use as little energy as possible to create the maximum amount of movement, and rare earths are critical in ensuring that efficiency. Rare earths create electromagnetism that generates attraction and repulsion forces and creates the movement in the electric vehicle. When you put these permanent magnets inside the motor, you can maximize the efficiency of that expensive battery you have already invested in.
A Tesla can go faster than a Ferrari, with the speed generated not by the battery but by the motor. The same is true in a wind turbine – if you put permanent magnets in the turbine’s rotor, you will generate much more speed, thus generating more electricity with the same force. Rare earths are going to be present in every place where we look to use energy most efficiently.
GBR: What geopolitical factors position Aclara for success?
Barua Costa: The supply chain of rare earths and permanent magnets primarily comes from China, and China intends to maintain that monopoly going forward. However, we see significant efforts from the West, not only from the US but also from Europe and Japan, to determine alternative supply chains that can be competitive with China for two reasons.
The first is geopolitical independence. The second is a strong trend among end users of technology who want to have traceable materials and materials that are produced using the highest standards for social and environmental practices. Chile wants to lead the world in green mining, and a project like Aclara fits within that goal and could be a signature project for the country and the world.
(This article first appeared in Global Business Reports Chile Mining 2023)
