Background: 

 

A municipality in Brazil located near a rare earth deposit enlisted our services after higher authorities granted exploration and mining permits to a new company using a new and supposedly technology free of radioactive waste.

 

Concerned about the real environmental impacts of this technology, still in the development stage and untested in mining operations, the municipal council asked Psyché 16 to do a deep audit of the technology’s effectiveness and transparency, and of the financial viability of the mining company in the medium and long term.

 

Methodology and deliverables: 

 

As part of the audit we performed:

• an assessment of the sustainability of the extraction process in relation to the local deposit type (ionic clays) and environmental impacts, objective measurements of the environmental and human impact of the mining project (waste, pollution), and an analysis of the total ESG footprint of the project, factoring in other risks such as deforestation,

• due diligence of the mining company and an audit of its viability and reliability by assessing its financial position and project financing arrangements, as well as its reputation and credibility given its junior status in the sector.