- Aclara Resources (TSX:ARA) has completed a conceptual engineering study for its U.S. rare earth elements separation project
- The study moves the company closer to becoming the first vertically integrated heavy rare earth elements company outside of Asia
- Aclara is a development-stage company focused on heavy rare earth mineral resources in Chile and Brazil
- Aclara Resources stock has added 25 per cent year-over-year but has lost 68.75 per cent since 2021
Aclara Resources (TSX:ARA) has completed a conceptual engineering study for its U.S. rare earth elements (REE) separation project that moves it closer to becoming the first vertically integrated heavy REE company outside of Asia.
The project, overseen by U.S subsidiary, Aclara Technologies, and developed with the Saskatchewan Research Council, will produce high-purity didymium (NdPr), dysprosium (Dy) and terbium (Tb) from the company’s Carina project in Brazil and Penco module in Chile using solvent extraction technology shown to achieve over 99.5 per cent purity.
The highly encouraging Class 5-AACE engineering study, conducted by Hatch, estimates CAPEX of US$354 million and OPEX of US$12 per kilogram of rare earth oxides (REO), while incorporating robust waste reduction and zero liquid discharge. The study also touches on what Tuesday’s news release refers to as “significant synergies” with Aclara’s proprietary circular mineral harvesting process, potentially leading to reductions in CAPEX and OPEX at mine and separation stages, waste management cost minimization, and enhanced mixed rare earth carbonate output from its properties.
Next steps for the project include a trade-off study comparing the base case of hydrochloric acid chemistry to a nitrate-based chemistry, a detailed analysis to identify a U.S. site for the industrial separation facility, and bench scale and mini-pilot testing to optimize the contemplated separation flowsheet, CAPEX and OPEX. Contingent on these results, Aclara may implement an integrated piloting campaign and pursue a Class 3-AACE CAPEX and OPEX engineering study.
The engineering study coincides with Aclara’s development of its metals and alloys capabilities through a joint venture with CAP S.A., a strategic partner in Chile, with the goal of connecting “all aspects of the production of clean rare earths up to the point where they meet the specification demanded by permanent magnet manufacturers,” the news release stated.
Aclara provides early-stage exposure to the more than US$20 billion market for permanent magnets, a key element behind the competitive performance of motors in electric vehicles, wind turbines, robotics and other pillars of global decarbonization.
Leadership insights
“We are encouraged and excited by the initial results from our REE separation project, which highlight our commitment to vertically integrate while maintaining our high ESG standards across the value chain,” Barry Murphy, Aclara’s chief operating officer, said in a statement. “As we transition to the optimization phase of the project, we have been positively surprised by the numerous synergies between our circular mineral harvesting process and our separation process. These synergies aim to optimize CAPEX and OPEX by reducing steps and simplifying the integrated flowsheet, effectively resulting in more competitive costs and expediting the time to market. At Aclara we remain committed to becoming a reliable and responsible long-term supplier of heavy rare earths, providing the critical minerals that our planet urgently needs in its race against climate change.”
About Aclara Resources
Aclara is a development-stage company focused on heavy rare earth mineral resources in Chile and Brazil.
Aclara Resources stock (TSX:ARA) is up by 2.04 per cent, trading at C$0.50 per share as of 11:26 am ET. The stock has added 25 per cent year-over-year but has lost 68.75 per cent since 2021.
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(Top photo of Aclara Resources’ pilot plant in Chile to create heavy REE carbonate samples for commercial purposes: Aclara Resources)