22 June 2023: Serra Verde (the “Company”), which is developing an integrated rare earth element (“REE”) mining and processing operation in Brazil, announces that it has begun commissioning the first phase of operations at its Pela Ema deposit in Minaçú, Goiás State.
Once operational, Serra Verde will produce a unique mineral concentrate containing a high value combination of both heavy and light magnetic REEs, including neodymium (Nd), praseodymium (Pr), terbium (Tb) and dysprosium (Dy).
At startup, Serra Verde will be the first scale operation outside Asia to produce all four critical magnetic REEs essential to the manufacture of permanent magnets used in electric vehicle motors and wind turbine generators. This makes Pela Ema a strategic asset within the emergent global magnet-producing value chains. The four magnetic REEs, for which demand is growing prolifically, are expected to constitute the vast majority of the value of the Serra Verde concentrate. Concentrate samples from Serra Verde’s, long-life deposit have already been widely tested and accepted by major customers with off-take agreements established for a large proportion of initial planned production.
Unlike many hard rock REE producers, ionic clay deposits such as Serra Verde’s are particularly attractive as they can be mined with low-risk open pit mining techniques and processed using simple, established technologies with no hazardous chemicals, resulting in lower operating costs and superior ESG credentials. Serra Verde also benefits from access to supplies of renewable electricity to meet over 90% of its expected Phase I requirements. Furthermore, its Pela Ema deposit is in an established mining district with access to technical skills and developed road and port infrastructure.
Phase I of the Pela Ema deposit is expected to produce at least 5,000 tonnes per year of rare earth oxide over a 25-year mine life with significant potential to increase capacity through plant optimization. Today’s announcement means that Serra Verde is on track to begin commercial production by the end of 2023. The significant defined resource facilitates a potential Phase II expansion of the Pela Ema deposit, with the objective of doubling run-of- mine production before the end of this decade.
Thras Moraitis, CEO of Serra Verde, said, “Reaching this critical milestone would not have been possible without the skill, hard work and dedication of the Serra Verde team – this is their achievement, and I am immensely proud of their efforts.
“Serra Verde is a world-class operation and the quality of its products and growth options make it a unique asset with the potential to be a cornerstone upon which the permanent magnets sector can begin to diversify its supply chains. We have already commenced work on the numerous growth options at our disposal, including debottlenecking and improving recoveries in our current phase, accelerating the potential Phase II expansion of the Pela Ema deposit and further exploration of our large tenement.”
Ricardo Grossi, COO of Serra Verde Brazil, said, “We have taken an important step towards commercial production and are focused on completing full commissioning and ramp-up of our initial operation to safely achieve commercial production by the end of this year. I am proud that throughout the construction process we have set a very high standard for protecting the health and safety of our teams, supporting local stakeholders and caring for the environment around our operations. I am confident that we can maintain this positive performance as we bring Serra Verde into operation and explore potential expansion opportunities.”
Ends
Contacts
Serra Verde
Brazil Herta Torres
Gerente Relações Institucionais e Responsabilidade Social Responsabilidade Social Corporativa
F: +55 62 3923 9100
Cel: +55 62 9 9841 1204
Email: herta.torres@svpm.com.br
www.serraverde.com
Aura Financial
Michael Oke, Andy Mills
Tel: +44 207 321 0000
Cel: +44 7834 368299, +44 7841 748911 Email: serraverde@aura-financial.com
Forward-Looking Statements
This release contains forward-looking statements. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as “expects,” “believes,” “intends,” “anticipates,” “plans,” “estimates,” “forecast,” “guidance,” “potential,” “possible,” or “probable” or statements that certain actions, events or results “may,” “will,” “should,” or “could” be taken, occur or be achieved. The forward-looking statements include statements about the completion of construction of Phase I of the Pela Emma deposit, expected benefits of REEs, production, financial position and business strategy. Forward-looking statements are based on current expectations and assumptions and analyses made by Serra Verde and its management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to the ability timely and within budget complete construction of Phase I of the Pela Ema deposit, the success of production and the market for and prices of REEs. Serra Verde undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.
