Serra Verde Group (“Serra Verde”) is pleased to announce that it has been added to the Minerals Security Partnership’s (the “MSP”) list of projects that are of critical importance to the global energy transition.
In addition, the Energy and Minerals Group and Vision Blue Resources have led a US$150m investment in Serra Verde, with founding investor, Denham Capital, also participating and continuing its longstanding support of the business, to enable debottlenecking initiatives, deliver operational enhancements and advance long-term growth options.
Serra Verde is the only scale producer outside of Asia of the four critical rare earth elements (“REEs”) essential to the production of efficient permanent magnets, providing a new, reliable, responsible, traceable and low carbon supply of REEs to diversify global supply chains. Permanent magnets are needed for the energy transition and are integral to the production of efficient electric motors used in EVs, wind turbines, air conditioners and other vital applications.
The MSP is a collaboration of 14 partner countries and the European Union, currently chaired by the Republic of Korea, that aims to accelerate the development of diverse and sustainable critical energy mineral supply chains. The MSP works with host governments and industry to facilitate targeted financial and diplomatic support for strategic projects along the value chain. MSP partners strive to elevate environmental, social, and governance (ESG) principles across the global minerals sector, increase recycling of critical materials and promote local value addition.
Serra Verde aims to become the most sustainable supplier of REEs in the world by leveraging the superior credentials of its ionic clay operation, its advantageous location in Brazil and by applying best practice sustainability and operating standards. Serra Verde uses low operating risk open mining techniques and simple processing technologies with benign reagents. The operation has a low carbon footprint due to its largely renewable electricity supply and use of biofuels and is located in an established mining district with access to technical skills and services and well-developed road and port infrastructure.
Having entered commercial production in early 2024, Serra Verde has already begun work to increase Phase I capacity through plant optimization and debottlenecking and is assessing the potential for a Phase II expansion which could double run-of-mine production before 2030.
The Group is committed to building on the MSP’s trust and engagement so it can continue to play an active role in the creation of new ecosystems essential to the clean energy transition.
Thras Moraitis, CEO of Serra Verde, said:
“Today’s announcement is a strong endorsement of the significant role that Serra Verde can play in establishing sustainable, secure and diversified rare earth supply chains to enable the global energy transition. Federal, state and international coordination on the criticality of current and future critical mineral operations is essential to ensure they reach the scale necessary to allow them to successfully compete and accelerate the development of our industry. We have ambitious plans to invest in and expand our operation and the additional investment from our shareholders will enable us to continue to deliver on these exciting initiatives.”
Contacts
Aura Financial
Email: serraverde@aura-financial.com
Tel: +44 20 7321 0000
Michael Oke / Andy Mills
Notes to Editors
About the Minerals Security Partnership
The Minerals Security Partnership (MSP) aims to accelerate the development of diverse and sustainable critical energy minerals supply chains through working with host governments and industry to facilitate targeted financial and diplomatic support for strategic projects along the value chain.
The MSP considers projects along the full clean energy value chain, from mining, extraction, and secondary recovery, to processing and refining, and ultimately to recycling. The MSP focuses on the minerals and metals supply chains most relevant for clean energy technologies. These include – but are not limited to – lithium, cobalt, nickel, manganese, graphite, rare earth elements, and copper.
MSP member states include the Republic of Korea (chair), Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, Norway, Sweden, the United Kingdom, the United States, and the European Union (represented by the European Commission).
About Serra Verde
Serra Verde’s Pela Ema operation benefits from 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 is 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. Commercial production commenced in early 2024 and the operation is currently ramping up and undertaking plant optimisation.
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 the largest ionic-clay REE operation outside of Asia. 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 has access to grid electricity with a high proportion of renewables.
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 to complete construction of Phase I of the Pela Ema deposit on time and within budget, 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.
