Aclara garners enviro approval for Penco Module rare earths project in Chile

Having approved Aclara’s environmental-impact assessment on the project, the Environmental Assessment Commission of Chile’s Biobío region now authorises the development and operation of the project.

Aclara says Penco Module is now among only a few approved heavy rare earths projects outside of China.

Penco Module is expected to become a sustainable source of dysprosium and terbium, which are minerals used in permanent magnets for electric vehicles, renewable-energy technologies and defence applications.

“We believe Chile has a unique opportunity to become an important contributor to the supply of critical minerals essential for the energy transition and that the Biobío region is well positioned to play a leading role in that effort,” comments Grupo CAP CEO Nicholás Burr, who is co-developing the Penco Module project alongside Aclara.

Aclara executive VP Jose Augusto Palma says the environmental approval milestone reinforces the strategic importance of the Biobío region and Chile in building a resilient critical minerals supply chain for the future.

“We are now entering a new stage, working together with local authorities, communities, universities and productive stakeholders to responsibly implement the Penco Module project and fulfil the commitments assumed throughout the evaluation process,” Palma states.

Aclara’s patented technology, Circular Mineral Harvesting, offers a sustainable and energy efficient extraction process for rare earths from ionic clay deposits. The technology minimises water consumption and overall environmental impact through recycling and circular economy principles.

The Penco Module project is expected to be commissioned by mid-2028, producing 811 t/y of rare earth oxides.