Rare earth elements (REEs), essential for high-tech applications such as electric vehicles (EVs), wind turbines and electronics, have become political pawns between East and West.
China maintains a dominant position in global rare earth production and supply chains. Asserting its control, the country imposed an export ban on key rare earth processing technologies at the end of 2023.
China has since tightened regulations on rare earth mining, smelting and trading, taking measures such as classifying rare earth resources as state-owned and introducing mandatory traceability systems for companies.
In response, the US introduced tariffs on Chinese EVs and critical minerals, aiming to counter China’s dominance while promoting US domestic rare earth production.
The conflict highlights the strategic importance of rare earths in promoting green technology and addressing national security concerns.
Acceleration of demand
Rare earths, a group of 17 metallic elements that include the lanthanides and yttrium, are relatively abundant in the Earth’s crust. However, they are usually quite dispersed and are not found in concentrations high enough to be mined economically.
They are classified as critical minerals and are essential for clean energy technologies and advanced defense systems.
As a result, global demand for rare earths is accelerating. The International Energy Agency’s Global Critical Minerals Outlook 2024 states that demand for magnetic rare earths is expected to nearly double between 2015 and 2023 and double again by 2050.
With at least 4% of the world’s rare earth reserves, Australia is well placed to benefit from this surge in demand and plays a key role in the evolving rare earth landscape.
Lindian Resources
Lindian Resources Ltd is developing the world-class Kangankunde rare earth project in Malawi.
A feasibility study in July 2024 outlined a low-risk and economically robust project.
The feasibility study for the project’s first stage development showed that Kangankunde would deliver excellent technical and economic results, including having one of the lowest capital and operating costs of any rare earths project in the world. It was done.
Pre-production capital costs are estimated at approximately US$40 million (A$60 million), including a 12.5% contingency.
The study also projects a payback period of less than two years and a net present value after tax (NPV8) of US$555 million (A$831 million). This gives you the ratio of after-tax NPV to capital expenditure (CAPEX). More than 10:1, internal rate of return (IRR) of 80% and average annual earnings before interest, taxes, depreciation and amortization (EBITDA) of USD 84 million. (A$124.5 million).
Since the completion of the feasibility study, the company has been rapidly advancing the Kangankunde project, most recently through a non-binding term sheet with Gerald Group, one of the world’s largest independent employee-owned metal trading companies. Secured funding of USD 50 million.
Lindian continues to advance negotiations with Gerald regarding the terms and conditions of the proposed financing and offtake arrangement in parallel with the completion of Gerald’s due diligence process.
LIN is also developing a more optimized processing flowsheet for the project through an extensive review and expects to complete process plant design and contract award in the coming weeks.
rare earths in america
American Rare Earths Ltd is developing wholly owned magnet metal projects in La Paz, Arizona and Halleck Creek, Wyoming.
Both have the potential to become the largest rare earth deposits in North America.
The company recently received a “sleep prospecting permit” from the State of Wyoming, allowing it to conduct test mining, trenching and prospecting in the Cowboy State Mine Project area within Halleck Creek.
This test mining will enable the company to source ore for processing at its pilot processing facility. This is an important step in advancing pilot plant testing, refining treatment routes and laying the foundation for future project development.
Looking ahead to 2025, the company plans to update its JORC resources and complete a pre-feasibility study. Metallurgical testing plays an important role in progressing the project.
CEO Chris Gibbs said Halleck Creek is a rare earth deposit that could meet the needs of the United States for more than a century, highlighting its strategic importance in the current economic climate.
He noted that the company continues to benefit from Wyoming’s strong support as it moves forward with the largest rare earths project in the United States.
ionic rare earth elements
Ionic Rare Earths Ltd (ASX:) is a pioneer in magnet recycling, leveraging sustainable technology to lead in the secure supply of magnetic rare earths to power the next generation of wind turbines, electric vehicles, defense and advanced manufacturing. is.
Makuutsu
IXR is a 60% owner of the Makuutu Rare Earth Project in Uganda. The project is one of the few proven ion adsorbent clay (IAC) deposits in the world with the scale to move the needle on heavy rare earth oxide (REO) supplies for the new economy. The project will be Uganda’s flagship mine and will be an environmentally and socially sustainable, low-cost development.
ion technology
Ionic Technologies, a subsidiary of IXR, has developed REE separation and purification technology and applied it to the recovery and separation of individual rare earths from used permanent magnets.
This patented technology provides pioneering capabilities in individual magnet rare earth recycling, separating over 99.9% of magnet rare earth oxides (REO) for use in energy transition, electric vehicles, advanced manufacturing, and defense. make it possible.
refinery
IXR has identified a clear opportunity to deliver magnets and heavy rare earth oxides (HREO) from mine to market and is developing an independent commercial scale rare earth oxide (REO) production facility in Belfast, UK.
The demonstration plant in Belfast is now operational and IconicRE is continuing to develop its intellectual property there to develop both magnet recycling and heavy rare earth separation and purification at its own independent refinery.
The company is also working with JV partner Viridis and Minerals Ltd. to create a sustainable, traceable, sovereign and circular rare earths supply chain in Brazil, building on the unique magnets already demonstrated in Belfast. We are also working on the use of rare earth recycling technology.
The refinery will leverage Ionic Technologies’ IP to become a pioneer and the first step in establishing a larger presence in Brazil’s emerging rare earth market.
Lantine Resources
Lanthanein Resources Ltd, an emerging rare earth element and lithium exploration company, is focused on significant mineral discoveries in Tier 1 mining jurisdictions in Western Australia and South Australia, working to support a sustainable electric future. I’m here.
The company’s project portfolio includes the Lady Grey, which includes Mt Holland and Yilgarn, the Gascoigne REE project, which includes Lyons and Edmund, the Cooliya Kaolin Project in Western Australia, as well as the Maleidium REE Project in South Australia.
The Gascoigne Rare Earth Elements Project is expected to develop rare earth elements hosted in ironstone and ferrocarbonatite. Here, LNR is exploring the light rare earth oxides of neodymium (Nd2O3) and praseodymium (Pr6O11), which are important in the production of permanent magnets.
The Maleidium project is a promising clay-hosted rare earth element project, and Australian Rare Earths Ltd. has rare earth element resources in an adjacent tenement in Coppamura. Drilling by AR3 confirmed clay-dominated rare earth mineralization, and the results indicate the potential for additional high-grade rare earth ionic clays of global significance over a wide area of the project area.
LNR’s current main focus is the Lady Gray lithium-tantalum project, where it has entered into a farm-in agreement to acquire up to 70% of the project. The company has now completed its drilling program and will evaluate the analysis results and evaluate the project’s feasibility before deciding whether to proceed to the next stage of the farm-in agreement.
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