Aclara revises strategy to obtain green light for Chile rare earths project

Through two new environmental impact assessments, Canada’s Aclara Resources hopes to reverse the decision to terminate the review of its US$130mn Penco rare earths project in southern Chile’s Biobío region.

The environmental evaluation service warned of a possible impact on native naranjillo trees surrounding the site in Penco municipality near Concepción. (See photo below)

This "changed the classification to a preservation zone and with this we have to reformulate the project. Now we have a defined strategy for the resubmission [of the new technical report] in the next four months that will collect all the observations of the sectoral organizations," Aclara general manager for Chile Nelson Donoso said in response to BNamericas during a webinar hosted by Netmin on Monday. 

The first study (EIA 1) will be presented early next year and will cover the first five years of the mine's useful life, which is estimated at 17 years, including the closure process.

EIA 1 will include technical improvements and will focus on three extraction zones: Victoria Norte, Luna and Maite, in addition to the deposition area and production facilities, the Hochschild Mining subsidiary said in a statement on Tuesday.

"With the 200ha where we are going to intervene, we will be able to [supply minerals] to manufacture 18mn electric cars, and with the products that we are going to produce, the equivalent of five years of Chile's CO2 could be neutralized," Donoso said.

The second study (EIA 2) will be prepared once the conditions are in place to expand production through the incorporation of new extractive areas, the firm added.

“In light of the revised permitting strategy, the company has decided to delay the completion of its feasibility study and use the additional time to further refine the engineering aspects of the project by incorporating enhancements that are expected to result in reduced capital and operating costs and improved operational efficiency,” Aclara said. 

“These enhancements are the direct result of insights gained from recent piloting work and ongoing research and development initiatives.”

“Our revised strategy for the project reflects our commitment to address the concerns raised by the Chilean environmental evaluation services, even if it would result in a staged approach to the development of the project,” said Aclara’s CEO Ramón Barúa in the statement.

Under the revised schedule, Aclara expects approval for EIA 1 in the fourth quarter of 2025 and to start construction at the beginning of 2026. Production is due to begin in the second quarter of 2027.

‘Green mining’

The project design considers a processing model that will only consume recycled water from the city of Concepción, which will be 95% recirculated. In addition, it will have low energy consumption, will not use blasting, crushing or grinding and will not generate tailings or liquid waste, Donoso said.

He added that native trees are not located in the mining or operating areas and all intervened areas will be revegetated with native species as part of the environmental closure process. The company has considered donating the land to a conservation foundation, Donoso said.

Dysprosium, neodymium and terbium are three minerals critical to climate change, according to the latest list from the US Department of Energy. While they are scarce, they are present in Penco.

Módulo Penco. Credit: Aclara