Serra Verde secures regulatory approval for first phase of Brazil rare earths mine

Rare earth elements (REE) developer Serra Verde has received an environmental operating licence for the first phase of its Pela Ema project in east-central Brazil, giving the company its necessary regulatory approvals to complete the commissioning process.

Once operational, Pela Ema will produce a unique concentrate containing a high value combination of both heavy and light magnetic REEs, including neodymium, praseodymium, terbium and dysprosium, all essential to the manufacturing of high-efficiency permanent magnets used in electric vehicle motors and wind turbine generators.

“We are thrilled to have received this final licence, which means Serra Verde is on track to become the first scale producer outside Asia to provide all four rare earths essential to the production of efficient permanent magnets, supporting the energy transition,” said Serra Verde CEO Thras Moraitis, adding that its REE deposit in Goiás state “will be a strategic asset in the global permanent magnet value chain for many years to come.”

Key commissioning milestones will include the start-up of the processing circuit and the dry stack tailings facility as well as connection of the site to the electricity grid, from which it will source 100% renewable electricity. The private  company, controlled by global investment firm Denham Capital aims to start commercial production by the end of December. 

The first phase of the project is expected to produce at least 5,000 tonnes per year of rare earth oxide over a 25-year mine life, with offtakes already in place for a large proportion of planned production. There is also significant potential to increase capacity through plant optimization, Serra Verde said.

With its ionic clay deposit, Serra Verde said it will use open mining techniques and conventional processing technology using few hazardous chemicals to reduce operating costs and deliver strong environmental, social and governance results. 

The large, defined resource could facilitate a potential Phase II expansion of the Pela Ema deposit, with the objective of doubling run-of-mine production before the end of this decade, it added.

Also in northeast Goiás state, Aclara Resources (TSX: ARA) is developing the Carina Module rare earths project and earlier this month released its inaugural resource for the ion adsorption clay deposit. 

Aclara’s Penco Module and Serra Verde’s Pela Ema projects represent the most advanced rare earths endeavours in South America. 

Brazil holds the third highest number of rare earths projects in the Americas, behind Canada and the United States.