Aclara Resources Inc (TSX:ARA, OTC:ARAAF) has revealed plans for a US-based subsidiary, Aclara Technologies Inc, aimed at advancing its rare earths separation capabilities in the US.
The move follows Aclara's joint venture with CAP to develop metal and alloys capabilities, positioning the company as a leading vertically integrated heavy rare earths entity outside of Asia.
Aclara Technologies will source high-purity rare earths carbonates from Aclara's extraction modules in Chile and Brazil, converting them into individual rare earths oxides in a planned US separation facility.
"This strategic decision is only possible because of Aclara's unique feed of clean heavy rare earths, particularly Dysprosium and Terbium, which is expected to be sourced from two stable and investment friendly countries in the Americas,” Aclara CEO Ramon Barua told shareholders.
“This competitive advantage distinguishes Aclara from other players in the industry. By going further in the vertical integration of rare earths production, we improve our ability to commercialize our product while retaining the economic margins of this important stage in the value chain.
“Consequently, end users will benefit from a more cost competitive product built with traceable, fully ESG compliant materials, resulting in a stable long-term supply of heavy rare earths.”
Aclara has engaged the Saskatchewan Research Council (SRC) to devise a tailored production flowsheet for its premium carbonate, while Hatch Ltd will handle the engineering of the proposed separation facility.
The agreement entails SRC developing a conceptual Solvent Extraction (SX) separation process, serving as the foundation for Hatch to conduct a comprehensive Class 5-AACE CAPEX and OPEX estimation.
The ultimate goal is to design a plant capable of processing Aclara's mixed rare earth carbonates into separated neodymium and praseodymium (NdPr) oxide, along with dysprosium (Dy) and terbium (Tb) oxides, boasting exceptional purities.
The engineering study is slated for completion by the third quarter of 2024.
"This study represents the starting point of our strategic intent to vertically integrate our future mining operations into the production of separated rare earth oxides, and to position Aclara as a key player in the future supply of heavy rare earth oxides,” Aclara COO Barry Murphy said.
Parallel efforts will see the development of metals and alloys capabilities through the REE Alloys SpA joint venture with CAP S.A.
Aclara's extraction process, noted for its low environmental impact and circular economy principles, underscores its commitment to sustainability.
With a focus on revegetation and minimal waste generation, Aclara aims to redefine rare earths production while meeting the rising demand for critical materials in decarbonization efforts.