Serra Verde (the “Company”), is pleased to announce that it has commenced commercial production of Mixed Rare Earth Concentrate (“MREC”) from Phase I of its Pela Ema deposit in Minaçu, Goiás State, Brazil. Once it has ramped up to full production, Serra Verde is expected to produce at least 5,000 tonnes per year of rare earth oxide used in the manufacture of high-efficiency permanent magnets required for electric vehicle motors and wind turbine generators.
MREC samples from Serra Verde have already been accepted by major customers, and offtakes for a large proportion of planned production are in place with established processing companies. The Company has begun work to increase Phase I capacity at Pela Ema through plant optimization and is assessing the potential for a Phase II expansion which could double run-of-mine production before 2030.
Pela Ema is a large, long-life ionic clay deposit that contains 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 also aims to be the most sustainable supplier of rare earth materials in the world by leveraging the superior sustainability credentials of its operations and applying world class operating standards.
Serra Verde uses low operating risk open mining techniques and simple, established processing technologies with no hazardous chemicals resulting in lower operating costs and reduced environmental impacts. Serra Verde’s electricity supply is entirely sourced from renewable energy sources and the operation is in an established mining district with access to technical skills and developed road and port infrastructure.
Thras Moraitis, CEO of Serra Verde said:
“The start of commercial production is a critical milestone in our development and means we are now the only company outside Asia to produce at scale all four critical rare earths used in the production of permanent magnets. Our product can play a critical role in supporting the growth in production of electric vehicles and wind turbines that are vital to the energy transition. As we ramp up to achieve nameplate capacity, Serra Verde is also working to build downstream partnerships to support the development of long-term, sustainable supply chains.”
Ricardo Grossi, President of Serra Verde Pesquisa e Mineração and COO of the Serra Verde Group commented:
“We are proud to become Brazil’s first large scale rare earths producer, starting a new phase in the country’s proud mining history. As we develop our operations, we aim to become the most sustainable rare earths operation in the world and create measurable benefits for all stakeholders. The start of commercial production is a very important achievement, and I would like to thank all the members of the Serra Verde team who have helped us reach this critical milestone.”
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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.