Aclara updates its US$600mn Brazil rare earth project

Canada's Aclara Resources is looking at bringing forward the start of its production at its Carina rare earth element project in Brazil’s Goiás state.

"Commissioning [is] estimated to commence in 2029. The company is evaluating the possibility to expedite the production schedule to begin between 2027 and 2028," the firm said in a statement with details of an updated preliminary economic assessment.

The company is now estimating initial capital costs of US$593mn and sustaining capital costs of US$86mn.

According to the PEA, Carina will have a 27% internal rate of return over the 22-year life of mine and a payback period of 4.2 years.

“The PEA highlights the Carina module's notable economic potential, with an after-tax NPV of US$1.5bn based on the base case price forecast, and US$2.2bn when considering the incentive price forecast. These figures underscore the project’s status as a high-quality heavy rare earth asset, designed to deliver significant annual dysprosium and terbium production, representing approximately 13% of China’s official output in 2023," said Aclara’s CEO Ramon Barua.

He said the medium to long-term outlook for rare earth elements, particularly heavy rare earths, remains strong due to their global scarcity and also amid increasing international regulations that are paving the way for alternative supply chains beyond China.

The projected investment in Aclara represents more than one third of planned investments in the rare earth segment in Brazil in coming years. According to local mining association Ibram, between 2024 and 2028, investments in rare earth projects are expected to reach US$1.45bn.