Aclara, Japan’s Jogmec partner on Brazil rare earth exploration

In a market filing, Aclara clarified that the Carina project, its flagship asset in the state of Goiás and scheduled to begin operations in 2028, will remain outside the joint venture and continue to be wholly owned by the company.

Jogmec is responsible for securing strategic natural resources for Japan and is the same organization that signed a memorandum of understanding with the government of Goiás in March to cooperate in the research, technology, and exploration of critical minerals and rare earths. That same month, the state signed another agreement of this kind with the U.S., a memorandum that was questioned by members of the federal government.

Under the agreement with Aclara, Jogmec will exclusively finance up to $3 million in exploration expenses during an initial three-year earn-in period. If certain conditions are met, the Japanese organization may elect to invest an additional $1.5 million, extending the investment period by another year.

Jogmec will also have the option to acquire a 30% stake in one of Aclara’s exploration projects in Brazil if it fulfills all of its financial commitments. Once the 30% partnership is established, all future development costs for the selected project will be shared proportionally by the two partners, according to Aclara’s statement.

If it exercises the option to acquire the 30% stake in the selected project, the Japanese organization will also secure the right to purchase an amount of production equivalent to its 30% stake, plus an additional 10% share of the project’s future output. The purchases will be made on normal commercial market terms to support the project’s long-term financing and development.

According to Aclara, Jogmec may also transfer its stake and associated purchase rights to one or more Japanese companies or consortia, subject to the terms and conditions of the joint venture.

“The agreement also creates a natural pathway for future offtake agreements with Japanese companies through Jogmec’s priority rights,” Aclara CEO Ramón Barúa said in a press release. “As new discoveries are made, they have the potential to strengthen the resource base supporting our company’s vertically integrated rare earth supply chain.”