Highlights
- Serra Verde added to Minerals Security Partnership list and raises $150M for expansion and operational enhancements.
- Company aims to be the most sustainable supplier of rare earth elements outside Asia, crucial for permanent magnets in clean energy tech.
- Serra Verde’s ionic clay deposit in Brazil offers low-risk mining and processing with superior sustainability credentials.
Brazil-based Serra Verde Group (opens in a new tab) (“Serra Verde”) announced yesterday (opens in a new tab) that it has been added to the Minerals Security Partnership’s (opens in a new tab) (the “MSP”) list of projects that are of critical importance to the global energy transition. Also the Energy and Minerals Group and Vision Blue Resources have led a US$150m investment in Serra Verde, with founding investor, Denham Capital (opens in a new tab), 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 positions itself as 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.
What is the MSP?
With heavy backing by the U.S. State Department, 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.
Ambitious Aims
Serra Verde reports in its press release that the company seeks to become the most sustainable supplier of REEs in the world via the leveraging of what they tout as 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.
What’s commercial production status?
Commercial production started in early 2024, and the company now works to increase Phase I capacity through plant optimization and debottlenecking, plus they are now 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.
CEO Thras Moraitis went on the record:
“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.”
The Company
Located in the State of Goiás in central Brazil, Serra Verde’s Pela Ema deposit is a strategic asset within the emerging global clean technology industry. Serra Verde is the first scale operation outside Asia to produce all four critical Rare Earth Elements essential to the manufacture of permanent magnets.
Serra Verde entered commercial production at the end of 2023. Phase I is expected to produce at least 5,000 tons per year of Rare Earth Oxides over a 25-year mine life with offtake agreements already in place for a large proportion of planned production. There is significant potential to increase capacity through plant optimization and the large, defined resource could facilitate a doubling of run-of-mine production before the end of this decade.
Unlike many hard rock producers, ionic clay deposits such as Serra Verde’s can be mined with low-risk open pit mining techniques and processed using simple, established technologies with no hazardous chemicals or wet tailings. As a result, they have lower operating risk and superior sustainability credentials.
Serra Verde uses grid electricity with a high proportion of renewable energy and is in an established mining district with access to technical skills and developed road and port infrastructure.
Daniel
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