Aclara Resources advances Carina rare earth project in Brazil

Canada-listed firm Aclara Resources announced advances in its Carina rare earth project in Brazil's Goiás state, as companies in the segment work to bring their projects to investors' attention and take advantage of the global situation.

"The US and China are intensifying the trade war and as part of this scenario we've seen restrictions imposed by China, the world's largest producer of rare earth materials, on these exports, which is likely to force the US to seek other suppliers, potentially benefitting projects in Brazil," Valdir Farias, CEO of mining consultancy Fioito, told BNamericas.

Recently, China's trade ministry and general customs administration imposed export restrictions on rare earth elements (REEs) as part of its response to tariffs introduced by US President Donald Trump.

Against this backdrop, Aclara announced the start of operations at its pilot plant in the city of Aparecida de Goiânia, marking the first step of the Carina project.

The pilot plant received an investment of over 30mn reais (US$5.3mn) and will process 500t of ionic clays using the patented circular mineral harvesting process. The technology enables the extraction of rare earth concentrate with over 95% purity, using only water and no toxic chemicals.

The plant will operate for up to six months, focusing on testing and refining the extraction process before the permanent facility is implemented in the city of Nova Roma, scheduled to begin operations in the second half of the year. The structure covers 2,000m2 and will initially generate 60 direct jobs.

"The operation of the pilot plant in Aparecida represents a milestone not only for Aclara but for global mining. We are implementing an innovative, sustainable technology that respects the environment. Our commitment is to responsible development and to the future of new generations," Aclara CEO Ramón Barúa said in a statement.

With a total investment of 2.8bn reais, the Carina project is expected to generate more than 5,700 direct and indirect jobs. 

REEs are critical for technologies such as electric motors, wind turbines and rechargeable batteries, as well as for components in smartphones, advanced electronics, medical devices and defense systems, among many other uses.

Most REE projects in Brazil belong to junior companies listed in Australia and Canada. In recent weeks, these companies have been accelerating announcements of project milestones in an effort to attract the interest of global investors and financiers.

Other REE projects advancing in Brazil include the Caldeira project, owned by Australian junior Meteoric Resources; the Colossus project of Australian firm Viridis Mining; while Australia-listed exploration firm St. George Mining is developing the Araxá project. 

The only company currently producing REEs in Brazil is Mineração Serra Verde, controlled by global investment firm Denham Capital, with operations also located in Goiás state.