The submission of a new Environmental Impact Addendum (Adenda) has reopened the debate over the controversial rare earth project proposed by Canadian firm Aclara Resources in the city of Penco, Biobío Region. While the company claims the initiative is environmentally sustainable, public institutions and local communities continue to voice strong ecological concerns—particularly over native flora.
What to Watch: The Adenda Submission
Aclara submitted a 1,500+ page Adenda as part of the project’s environmental evaluation process. This document responds to technical and public observations made under the ICSARA framework.
From Toronto, Canada, the company announced the milestone in its $130 million Penco Module, a project that’s been years in the making.
“We’ve worked diligently with our partner CAP S.A. to address all questions and comments received through both technical and citizen feedback processes, ensuring that the Penco Module project meets the highest environmental and social standards,” said José Augusto Palma, Executive Vice President of Aclara.
Rare earth elements—17 critical minerals with unique properties—are key components in magnets, batteries, displays, and other high-tech applications, making them increasingly strategic on the global stage.
Environmental Pushback: Project Still Faces Hurdles
The new Adenda follows Aclara’s initial Environmental Impact Study (EIA) submitted in June 2023. The Chilean Environmental Assessment Service (SEA) had previously terminated the project early, citing significant environmental risks.
One major concern: the project site would affect the Citronella mucronata (Naranjillo), a vulnerable native species. The revised Adenda attempts to address this and other issues raised by CONAF, CONADI, SAG, local municipalities, and several government ministries.
The Naranjillo Issue Remains Central
Among the most pressing concerns are the lack of data and impact assessments on Citronella mucronata, as well as Pitavia punctata and Gomortega keule. Observations noted that:
• “The absence of specific measurements for Citronella mucronata and Pitavia punctata limits a comprehensive assessment of the project’s potential ecological impact.”
• The study failed to correlate how consulted literature applies to the local autoecology of these native species.
• Details on the relocation of 20 Naranjillo specimens were incomplete. SEA requested specifics such as geographic coordinates, plant size, age estimates, soil type, elevation, slope, and exposure.
Aclara’s updated report now includes maps, graphics, and mitigation strategies addressing these observations.
Global Spotlight: Rare Earths and U.S. Strategic Interests
The geopolitical importance of rare earths was underscored recently when Donald Trump announced he was negotiating with Ukraine for rare earth access in exchange for military support.
Chile’s role has grown in this context. The country holds rare earth reserves, placing it in a strategic position amid increasing global competition. With prices and demand soaring, experts suggest:
• Rare earths—considered among the 6 critical minerals for climate action—will face continued upward price pressure.
• Countries may need to diversify supply sources or accelerate domestic production to safeguard access.
• The U.S. and others are likely to pursue new supply chain partnerships, potentially giving projects like Aclara’s renewed strategic relevance.
Trump has even proposed taking control of all future Ukrainian mining and energy assets, highlighting how rare earth access is becoming a top-tier geopolitical priority.