Aclara Resources Inc (TSX:ARA, OTC:ARAAF) CEO and Director Ramón Barúa sat down with Proactive's Stephen Gunnion to delve into its Carina Module ionic clay rare earths project in Brazil.
Barua details the group's sustainability efforts and the strategic importance of dysprosium in advancing the energy transition, while also offering a deep dive into the challenges and opportunities that lie ahead for Aclara Resources.
SG: Can you share the highlights from the preliminary economic analysis of the Carina Module project?
RB: Absolutely, Stephen. Our analysis shows a net present value of $1.2 billion and an internal rate of return of 29% over a 17-year production lifespan. What's exciting is the project's payback time of just 3.6 years on a $582 million investment, underscoring its financial viability and efficiency.
SG: How does the Carina project position itself on the global stage?
RB: In 2023, Carina's production is expected to account for 13.7% of China's official rare earth output, which is significant given China's dominance in the market. It highlights Carina's global significance in the rare earths sector.
SG: Environmental sustainability is a hot topic. How does Aclara approach this?
RB: Our patented extraction method is a game-changer. It eliminates the need for explosives and significantly reduces CO2 emissions by avoiding traditional crushing and milling processes. We're fully committed to the circular economy, ensuring complete recycling of water and plant reagents.
SG: The demand for dysprosium is growing rapidly, especially with the rise of electric vehicles. How does Aclara plan to meet this demand?
RB: Dysprosium is crucial for the energy transition. We're strategically positioned to meet the growing demand, which is expected to reach 8,000 tonnes by 2033, up from the current supply of 3,000 tonnes. Our project is key to addressing this critical gap in the market.
SG: Finally, can you tell us about the project's timeline and any challenges you foresee?
RB: The gap between our operational pilot plant and the projected commissioning in 2029 is mainly due to Brazil's lengthy permitting process. However, we've received strong local government support and are optimistic about our progress. Additionally, we're continuously drilling to expand Carina's resource base, with updates expected in the coming months.