Aclara Resources Inc (TSX:ARA, OTC:ARAAF) Executive Vice President Jose Palma talked with Proactive about the recent signing of a Memorandum of Understanding (MoU) with the state of Goiás and the municipality of Nova Roma.
The agreement marks a significant step forward for the Carina Module Project, aligning the company closely with state authorities to expedite the project's progress.
Proactive: You've signed a memorandum of understanding with the state of Goiás and the municipality of Novo Roma to fast-track your Carina module project. Could you elaborate on the agreement?
Jose Palma: We’re extremely excited about this milestone. We have been working closely with the state of Goiás, led by the governor and his team, to achieve this. This milestone is significant for us as it fully aligns Aclara with the state of Goiás in making the Carina project a reality as soon as possible.
What does the memorandum of understanding cover?
Interestingly, in addition to the municipality of Nova Roma, which is where the project is located, the memorandum of understanding (MoU) is also supported by key government ministries of the state of Goiás. This includes the Ministry of Environment, the Ministry of Economy, the Ministry of Industry and Commerce, and the Ministry of Infrastructure.
Each of these entities has specific obligations outlined in the MoU. For instance, the Ministry of Environment has committed to expediting the evaluation of the Environmental Impact Assessment (EIA) once we submit it in early 2025. The Ministry of Infrastructure will review how they can enhance access to Nova Roma, which is critical for the timely construction of the project once we secure the necessary licenses.
Does the memorandum of understanding also cover workforce training, given that you'll be creating 3,200 jobs? This seems like a critical element as well.
Absolutely. As part of our social engagement strategy, we are committed to creating local employment opportunities. Given that Nova Roma is a small town in the northeast part of the state, we will collaborate with the government of Goiás and its relevant agencies to initiate training courses by the end of this year. These courses will prepare the future workforce for the project and will include not only Nova Roma but also the surrounding areas, as Nova Roma has a population of only about 2,500 and cannot fully staff the project on its own. This is a joint effort between the state and Aclara to build skills in the workforce and create opportunities for the local community.
Aclara is also committed to making significant financial investments in this project, isn’t it?
Yes, it has. Consistent with the PEA we released earlier this year, our commitment is to invest approximately $580 million in capital expenditures to bring this project into operation over the next few years.
What are the next steps now that you’ve signed this memorandum? Does it take effect immediately, and what are the subsequent steps as you move forward with the project?
The MOU is effective immediately. Our next steps include several key actions. First, we need to submit a detailed timeline of the project's development to the government within 150 days. We are also working on a plan to strengthen the institutional capacity of Nova Roma, which will be implemented jointly with the state government; this plan is due within 90 days.
The government is fully aligned with our goals, and we will hold regular meetings to address issues covered in the MOU, including infrastructure, public safety, and the environment.
Additionally, we are relocating our power plant from Chile to Brazil, which is already in progress. This initial step will help us establish the pilot plant effectively.
Quotes have been lightly edited for clarity and style