Finding common ground for rare earths: How Aclara is advancing its Chilean project

Canada's Aclara and Chilean holding company CAP will form a joint company to develop the US$130mn Module Penco rare earths project in Biobío region in the most sustainable way possible.

A new environmental impact study is being prepared, after one from last year was rejected because, among other aspects, risks to native naranjillo trees were not adequately considered.

Aclara-CAP JV REE Alloys will be responsible for construction. The project is expected to produce 1,700t/y of rare earth concentrates from a surface clay deposit.

The company, listed on the Toronto stock exchange with shareholders from the Hochschild group, is currently conducting technological tests for the extraction and processing of these critical electromobility minerals.

To learn more about the initiative and the partnership with CAP, BNamericas talks to Aclara CEO Ramón Barúa on the sidelines of Cesco Week.

BNamericas: What does the partnership with CAP mean for Aclara?

Barúa: CAP has reviewed each of our processes and how we're carrying out the new environmental impact study. By making an investment with Aclara, they have validated our effort.

Furthermore, they share our vision of the future and are willing to invest in the project today and in the long term, representing a reduction in financial risks and more security to continue moving forward.

CAP is committed to adding value to rare earths. Due to its years of experience with [rolling steel mill] Huachipato, it has developed scientific knowledge regarding ferroalloys, which aren't distinct from the alloys we will use to put the rare earths into the magnets that will go into electric vehicles. This partnership allows us to gain immediate know-how and provide added value, which will be crucial for the future of rare earths in Penco.

BNamericas: How do you address environmental aspects in the new Penco study? In particular, how will you protect the naranjillo trees, which, according to forestry authority Conaf, are susceptible to damage?

Barúa: We're in the southern part of Chile, where the main economic activity is forestry. Therefore, we've adapted to that reality and are working with experts to redesign the project. This is the third version of the project. We have a mine life of 14 years, but we will only request permission for the first five or six years. It's a limited project.

We have taken Conaf's comments in a very positive way and purchased nearly 8,000 naranjillos to donate. We had the opportunity to donate 2,000 to the Viña del Mar botanical park that burned down a few months ago.

We have taken responsibility for the naranjillo in the long term and although it's possible and legal to cut down native forest, unlike a preserved forest, we have completely ruled out that possibility.

BNamericas: How will you manage water and energy consumption?

Barúa: We don't use any natural source of water, but get our supplies from a water company in [regional capital] Concepción that carries out sewage water treatment. It's clean and treated water, but only for industrial consumption, not for human consumption.

We will use very low volumes, around 10l/s, a number that's insignificant for the mining industry. However, part of our capital is a plan to invest in a water recirculation plant with an efficiency of 95%. Globally, I would say that few, if any, mining companies can say that they don't use water from natural sources.

Regarding energy, the two stages that consume the most in the mining industry are crushing and grinding, processes we don't deal with. Our energy consumption is negligible compared with the traditional mining industry. This allows us to have a very small carbon footprint.

BNamericas: How do you manage the risks of using chemicals in the rare earths production process?

Barúa: Our main reagent is ammonium sulfate, which is a fertilizer widely used in agriculture and is really harmless. We then use an acid to regulate the pH in the solution, but the amounts of acid contents we use are also negligible, so they don't constitute a major risk. In any case, we will take all the necessary precautions.