22 December 2023: Serra Verde (the “Company”), which is developing an integrated rare earth element (“REE”) mining and processing operation in Brazil to produce Mixed Rare Earth Concentrate (MREC), is pleased to announce it has been awarded an environmental operating licence (“Licenca Operacional” or “LO”) by the Goiás State Secretariat for Environment and Sustainable Development (Secretaria de Estado de Meio Ambiente e Desenvolvimento Sustentável, “SEMAD”) for Phase I of its Pela Ema deposit in Minaçú, Goiás State.
Receipt of the LO means Serra Verde has received all necessary regulatory approvals and can now complete commissioning and bring the Phase I mine and processing plant into operation to support the commencement of commercial production by the end of this year. Key commissioning milestones will include the start-up of the processing circuit and the dry stack tailings facility as well as connection of the site to the electricity grid, from which it will source 100% renewable electricity.
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) all of which are critical magnetic REEs essential to the manufacture of high-efficiency permanent magnets used in electric vehicle motors and wind turbine generators.
Serra Verde’s goal is to provide the most sustainable supply of rare earth materials in the world and will operate to the highest environmental standards in compliance with the requirements of SEMAD as well as international best practice. As an ionic clay deposit, Serra Verde will use low operating risk open mining techniques and simple, established processing technologies with no hazardous chemicals, resulting in lower operating costs and superior Environmental Social and Governance credentials.
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 offtakes already in place for a large proportion of planned production. There is also significant potential to increase capacity through plant optimisation. The large, defined resource could facilitate 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, “We are thrilled to have received this final licence which means Serra Verde is on track to become the first scale producer outside Asia to provide all four rare earths essential to the production of efficient permanent magnets, supporting the energy transition. Serra Verde will be a strategic asset in the global permanent magnet value chain for many years to come.”
Ricardo Grossi, COO of Serra Verde Brazil, said, “I am proud of the enormous effort and achievements the team have made, reaching this milestone is a result of their commitment and dedication. I would also like to thank the local authorities in Goiás and Minaçu as well as the local communities for their continued support and interest in the project. We are looking forward to building our role in the regional economy and with construction almost complete, commissioning well under way and all licences received we can look ahead with confidence.
However, we are not resting on our laurels and are already working on operational improvements at Phase I, accelerating a potential Phase II expansion and further exploration of our large tenement.”
ENDS
Background
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 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.
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
Aura Financial
Michael Oke, Andy Mills
Tel: +44 207 321 0000
Email: serraverde@aura-financial.com
Notes to editors:
About Serra Verde
Serra Verde is a large, long-life deposit containing an elevated proportion of high value heavy and light REEs, primarily neodymium (Nd), praseodymium (Pr), terbium (Tb) and dysprosium (Dy) that are key to the energy transition. 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. Commissioning has commenced at the mine and all permits have been granted for commercial production to commence by the end of this year.
The operation is located in an established mining area with access to a skilled workforce and close to existing transport, power, water and other infrastructure.
Serra Verde is an ionic-clay REE deposit, one of relatively few such deposits found outside of China. Ionic clays can be mined with low-cost open mining techniques and processed using simple technologies with no hazardous chemicals, crushing, milling, or acid leaching. As a result, our environmental impacts are lower than at other rare earth operations.
Furthermore, the operation is located close to significant hydropower installations, providing access to reliable and clean energy.
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.
