Saturday 7th December 2019

Resource Clips


Posts tagged ‘china’

Commerce Resources reports high grades over wide intervals at Quebec rare earths-fluorspar project

November 28th, 2019

by Greg Klein | November 28, 2019

With core moved from the storage vault to the lab, new assays further confidence in a resource update anticipated for next year as the Ashram deposit advances towards pre-feasibility. The results come from a 14-hole, 2,014-metre program sunk in 2016 but only recently assayed for budgetary reasons. Now cashed-up Commerce Resources TSXV:CCE unveils an impressive batch of near-surface rare earths and fluorspar intercepts from the northern Quebec property.

Commerce Resources reports high grades over wide intervals at Quebec rare earths-fluorspar project

Among the highlights are one of the project’s best-yet intercepts: 2.38% rare earth oxides over 64.54 metres, with sub-intervals including 3.02% over 28.35 metres. Another standout shows 1.71% over 221.95 metres, including 2.18% over 36.16 metres. Yet another hole boasts 2.16% over 53.55 metres. (True widths were unavailable.)

These are near-surface results, starting at downhole depths of 66.5 metres, 2.69 metres and 1.54 metres respectively.

Another critical mineral and one not factored into Ashram’s previous PEA, fluorspar also comes through in impressive grades, such as 7.2% calcium fluoride over 221.95 metres, including 11.5% CaF2 over 36.16 metres. Metallurgical studies currently underway work on upgrading the fluorspar to higher-priced acid grade in a flowsheet that would provide both rare earths and fluorspar concentrates, improve RE extraction and reduce tailings. The Colorado lab will also produce samples to meet requests from potential customers.

This round of definition drilling targeted the deposit’s northern, western and southern margins with holes spaced 50 metres apart, and in some cases 25 metres apart. Additional drilling at 25-metre centres may take place.

Using a 1.25% cutoff, Ashram’s 2012 resource estimate showed:

  • measured: 1.59 million tonnes averaging 1.77% total rare earth oxides

  • indicated: 27.67 million tonnes averaging 1.9% TREO

  • inferred: 219.8 million tonnes averaging 1.88% TREO

The carbonatite-hosted deposit features relatively simple monazite, bastnasite and xenotime mineralogy, familiar to conventional rare earths processing

Anticipated for the coming year is Ashram’s first resource update since 2012, factoring in 9,625 metres of drilling since then. Previous drilling followed mineralization from near-surface to depths beyond 600 metres where mineralization remains open, as evidenced by 4.13% REO over 0.6 metres beginning at 599.9 metres’ depth.

Work continues as the United States and other allied countries show increasing concern about China’s domination of several critical minerals with a special focus on rare earths but also including fluorspar, tantalum and niobium. Commerce also holds the advanced-stage Blue River tantalum-niobium deposit in southern British Columbia.

About two kilometres from Ashram, Saville Resources TSXV:SRE operates the Niobium Claim Group under a 75% earn-in from Commerce. After releasing niobium-tantalum-phosphate results last June, Saville now has the project’s fluorspar potential under evaluation.

Earlier this month Commerce closed the final tranche of a private placement totalling $2.51 million. Another placement in August garnered $413,749.

Read more about Commerce Resources.

Mining for the future

November 21st, 2019

Saskatchewan Research Council R&D fosters innovation and sustainability

by Greg Klein

Predictably for a jurisdiction so rich in potash and uranium, mining plays a prominent role in the Saskatchewan Growth Plan, a 10-year economic program announced last week. Skeptics, however, might question the goal to extract lithium and rare earths locally and even set a near-precedent in non-Chinese commercial REE separation. But it turns out that some of that work has been underway for years, while other targets have already been in the planning stage. That’s just part of a wide range of mining expertise developed and applied by the Saskatchewan Research Council.

Saskatchewan Research Council R&D fosters innovation and sustainability

SRC employees look over the remediated Lorado mill site
in northern Saskatchewan. (Photo provided by SRC)

SRC figures strongly in the province’s new agenda, whose mining-related initiatives include a continuation of the PST exception on drilling, streamlining permitting, creating a Geoscience Data Management System, boosting annual uranium and potash sales, upgrading and building road, rail, pipeline and power infrastructure, and developing nuclear energy.

If some of the mining-specific plans sound over-ambitious, it’s reassuring to learn how few of them are actually new. “The fact that the projects have been promoted in an integrated growth plan is in some ways new, and some of the projects themselves are fairly new in the public domain,” says SRC president/CEO Mike Crabtree. But a surprising amount of work is well underway at his organization, which plays an integral role in the growth plan, in Saskatchewan industry and, increasingly, on the global mining scene.

A Crown corporation with over 340 employees, 1,400 clients in 23 countries and $75 million in annual revenue, SRC focuses its largest division on mining and energy. Mining-related R&D covers everything from early exploration to remediation, with growing attention to sustainability and innovation.

Saskatchewan Research Council R&D fosters innovation and sustainability

Rare earths solvent extraction helps develop another
source of critical minerals. (Photo provided by SRC)

The SRC boasts the largest potash, uranium and diamonds labs in the world. Most Canadian diamond production and a substantial amount of kimberlite from around the world passes through the Saskatoon facility.

“With uranium we test tens of thousands of ore samples per year, predominantly for Saskatchewan but also on a global basis. In terms of that, we’re very much the largest laboratory in the world and, for very similar reasons, for potash.”

But SRC’s work goes far beyond assays. “We’ve also used those laboratories for designing and modelling mine feasibility, through to diagnostics and optimization of ongoing mine operations, and then monitoring and remediation for closure,” Crabtree explains. “That’s full-cycle mining and minerals, making SRC probably one of the largest integrated testing, research and development facilities for mining, certainly in Canada and possibly in the world.”

One sustainability project focuses on comminution, the highly expensive and energy-consuming practice of breaking, crushing or grinding rock for further processing. SRC’s advanced ore sensor and sorting techniques can greatly reduce the procedure with no loss of production and sometimes even an improvement.

Saskatchewan Research Council R&D fosters innovation and sustainability

The SRC’s mineral processing labs handle extensive
work in addition to assays. (Photo provided by SRC)

“We’re already seeing the opportunity to reduce energy costs and therefore the carbon footprint by anywhere from 20% to 40%. That’s huge given that often 40% of operating costs are in energy. That kind of sustainability and economic optimization really just shows different sides of the same coin.”

Remediation work applies leading edge expertise to former mines through SRC’s Project CLEANS, which takes on the challenge of mitigating some 37 former uranium sites that shut down during the 1960s and earlier.

On another front, Crabtree says SRC oil and gas expertise brings “a lot of synergies” to the development of in-situ mining, a method that’s being tested on potash and uranium projects in Saskatchewan.

As for strategic minerals, the SRC harbours some surprising ambitions: local lithium and rare earths extraction, along with processing in both areas including commercial-scale REE separation. That last goal could give Saskatoon a key role in challenging China’s near-monopoly on rare earths supply chains.

Looking at lithium, Saskatchewan has two potential sources, the continental brines of the southern province, as well as oil and gas-produced waste water.

Starting with lithium levels of 50 ppm to 150 ppm, “SRC has developed technology to concentrate those brines up to maybe 2,500 or 3,000 ppm while excluding the contaminants, which makes processing to lithium hydroxide or lithium carbonate much easier and financially viable,” Crabtree says.

Saskatchewan Research Council R&D fosters innovation and sustainability

SRC oversees the Cowessess First Nation Renewable
Energy Storage Facility. (Photo provided by SRC)

Another possible source of critical minerals from waste comes from the world’s highest-grade uranium resources, which offer rare earths potential from tailings.

Of course with rare earths, the greatest challenge remains processing and separation. SRC plans to develop technology that could be applied to liquid raffinate from waste, or to the bastnasite or monazite minerals often associated with RE deposits.

Phase I begins next year. Working with industrial partners, SRC intends to produce a concentrate of 99.95% mixed rare earths oxides or rare earths carbonate.

Phase II, subject to funding from industry and government, will be to separate the concentrate into individual elements. He foresees “a smaller-scale commercial plant that would demonstrate the commercial viability of that technology. We can see a plant operating within about three years, assuming we can get funding. If no other plant is built by 2003, it would be the first commercial plant in North America.”

And a momentous achievement. Except for the Lynas facility in Malaysia and possibly a small-scale operation in France, there’s currently no commercial RE separation outside China, he points out.

Additionally, “we believe the process will be substantially more economically viable and much more environmentally sustainable than current techniques.”

Saskatchewan’s Growth Plan also calls for nuclear power. By becoming a consumer of its own uranium, the province hopes to drastically cut its dependence on coal and natural gas-fired electricity.

Saskatchewan Research Council R&D fosters innovation and sustainability

Staff operate SRC’s Centre for the Demonstration of
Emissions Reductions Mobile Facility. (Photo provided by SRC)

Again, SRC can offer a range of expertise. “We have experience not only with mining and processing uranium but also with an operational research reactor, which we just de-fueled in September. So we are the only entity in the province that has a nuclear reactor operating licence. In addition, other parts of SRC are highly skilled at environmental assessment and engineering assessment, so we hope SRC will be playing a role in Saskatchewan for small modular reactors.”

What comes up repeatedly in SRC’s work is the convergence of economics and sustainability as researchers find newer, less expensive and greener methods of producing materials that are, in turn, crucial to economic and environmental well-being. Ongoing innovation, of course, plays a vital role.

So it’s not surprising that a growing SRC priority is artificial intelligence—“specifically for industrial and resource processes in Saskatchewan,” Crabtree emphasizes.

“A lot of the processes that we’re talking about, whether it’s rare earths, lithium, sensor-based sorting, in-situ mining, all these things are going to have a significant deep data analytics and artificial intelligence component. That’s something we’re working very closely on.”

Looking ahead, he adds, “It will be difficult to envisage major projects like these in the next five years that don’t have a significant AI component.”

Read more about mining’s role in the Saskatchewan Growth Plan.

Read the Saskatchewan Research Council blog.

Paved with promises II

October 9th, 2019

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

by Greg Klein

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

The Chinese government’s majority-held Izok Corridor project
would benefit from Canadian infrastructure. (Photo: MMG Ltd)

 

This is the second of a two-part series. See Part 1.

Canada would gain a deep-water arctic port, Nunavut would get its first road out of the territory and mineral-rich regions would open up if two mega-proposals come to fruition. Recent funding announcements to study the Northwest Territories’ Slave Geological Province Corridor and Nunavut’s Grays Bay Road and Port projects could lead to a unified all-season route from a highway running northeast out of Yellowknife to stretch north through the Lac de Gras diamond fields, past the Slave and Izok base and precious metals regions, and on to Arctic Ocean shipping.

In mid-August, as federal and NWT elections neared, representatives from both levels of government announced a $40-million study into a possible 413-kilometre all-season route linking the NWT’s Highway #4 with a proposed Nunavut road. The project would also extend the NWT electrical grid to the Slave region, which straddles both sides of the NWT-Nunavut border.

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

Isolated Grays Bay could become an arctic shipping hub,
helping fulfill a dream that dates back to John Diefenbaker
and, not exactly a contemporary, Martin Frobisher.
(Photo: Grays Bay Road and Port Project)

That same month the federal and Nunavut governments, along with the Kitikmeot Inuit Association, announced $21.5 million to study a possible 230-kilometre Nunavut section. That proposal includes building a deep-sea port at Grays Bay, about midway along the Northwest Passage. Supporters hope to reach the “shovel-ready” stage in two to three years.

A “champion and proponent” of the project, KIA president Stanley Anablak said, “We know that this is only the first step, but if it is constructed, this infrastructure project will be a game-changer with respect to improved community re-supply, marine safety, arctic sovereignty, regional economic development and international investment.”

KIA perseverance helped revive the proposal after Ottawa refused to provide majority funding for the $527-million estimate in April of last year, 18 months before the federal election.

Another supporter is MMG Ltd, with two advanced base metals deposits in the region: Izok holds 15 million tonnes averaging 13% zinc and 2.3% copper, while High Lake shows 14 million tonnes averaging 3.8% zinc and 2.5% copper.

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

The Nunavut portion of a grand trans-territorial proposal.
(Map: Grays Bay Road and Port Project)

The Kitikmeot region “hosts some of the world´s more attractive undeveloped zinc and copper resources,” MMG stated. “However, located near the Arctic Circle and with no supporting infrastructure, these resources have remained undeveloped since their discoveries roughly 50 years ago.”

But could a supposed nation-building project become a nation-buster, compromising sovereignty for the sake of another country’s new silk roads? The proposal’s main beneficiary “will be the Chinese government, more so than the government of Nunavut or the government of Canada,” Michael Byers told the National Post in August.

About 26% of MMG stock trades on the ASX. China’s state-owned China Minmetals Corp owns the rest.

Byers, a political science prof and holder of the Canada Research Chair in Global Politics and International Law, “does not see a problem with a Chinese-controlled company operating mines in Canada,” the NP stated, “but he wonders if the company will be allowed to bring in Chinese workers to build the road and if Canadian taxpayers should foot the bill.”

The prospect of a Chinese company importing Chinese workers for a Canadian resource project has already been demonstrated by HD Mining International. In 2012 the company planned to staff underground operations at a proposed British Columbia coal mine exclusively with Mandarin-speaking Chinese. The mine was later put on hold, but not before an 18-month bulk sampling program conducted entirely by Chinese workers.

A new Grays Bay port and 350-kilometre all-season road formed part of the 2012 pre-feasibility study for MMG’s proposed mine. The company has since backed away from the estimated $6.5-billion price tag, calling for collaboration with others to build regional infrastructure.

We know that this is only the first step, but if it is constructed, this infrastructure project will be a game-changer with respect to improved community re-supply, marine safety, arctic sovereignty, regional economic development and international investment.—Stanley Anablak,
president of the
Kitikmeot Inuit Association

Certainly other companies would benefit too, as would the communities represented by the KIA. And as for sovereignty, neglecting infrastructure would cause the greater setback. That’s the perspective of a Senate report issued in June that called for several measures to expand the northern economy and enhance its culture. “The impact of federal under-investment hits hardest on the Arctic’s greatest asset, Indigenous youth,” the committee emphasized. “Opportunities for nation-building can no longer be missed.”

Among the senators’ priorities were energy and communications, as well as transportation, for the benefit of communities and industry. The committee recognized that mining comprises “the largest private sector employer in the Arctic, contributing to 20% to 25% of the GDP of the northern territories and supporting about 9,000 jobs directly, or one in every six jobs.”

The report also noted “growing global interest in the Arctic and rising international rivalry outside of the Arctic. Several non-arctic states in Europe and Asia have developed arctic policies or strategies.” Canada’s sovereignty over the Northwest Passage and other arctic waters depends on the principle of use it or lose it, the committee suggested.

The Northwest Passage route to Asia had been an alternative considered by Baffinland Iron Mines, the Nunatsiaq News reported last month. With ambitious infrastructure proposals of its own, the Baffin Island company currently relies on  trans-Atlantic routes to Europe and has also used Russia’s Northern Sea Route to reach Asia.

As part of its Phase II plans to increase production, Baffinland has applied for permission to build the territories’ second railway, which would run north from the Mary River mine to the company’s Milne Inlet port, now reached by a 100-kilometre freight road. The new track would precede a 150-kilometre southern rail extension to a port the company would build at Steensby Inlet. The Steensby route and facilities received environmental approvals in 2014.

This is the second of a two-part series. See Part 1.

Related reading: Reaching arctic mines by sea.

Infographic: The world’s most powerful reserve currencies

October 8th, 2019

by Jeff Desjardins | posted with permission of Visual Capitalist | October 8, 2019

Visual Capitalist The world’s most powerful reserve currencies

 

When we think of network effects, we’re usually thinking of them in the context of technology and Metcalfe’s Law.

Metcalfe’s Law states that the more users a network has, the more valuable it is to those users. It’s a powerful idea that is exploited by companies like LinkedIn, Airbnb or Uber—all companies that provide a more beneficial service as their networks gain more nodes.

But network effects don’t apply just to technology and related fields.

In the financial sector, for example, stock exchanges grow in utility when they have more buyers, sellers and volume. Likewise, in international finance, a currency can become increasingly entrenched when it’s accepted, used and trusted all over the world.

What’s a reserve currency?

This visualization comes to us from HowMuch.net, and it breaks down foreign reserves held by countries—but what is a reserve currency, anyway?

In essence, reserve currencies (i.e. U.S. dollar, pound sterling, euro, etc.) are held by central banks for the following major reasons:

  • To maintain a stable exchange rate for the domestic currency

  • To ensure liquidity in the case of an economic or political crisis

  • To provide confidence to international buyers and foreign investors

  • To fulfill international obligations, such as paying down debt

  • To diversify central bank portfolios, reducing overall risk

Not surprisingly, central banks benefit the most from stockpiling widely held reserve currencies such as the U.S. dollar or the euro.

Because these currencies are accepted almost everywhere, they provide third parties with extra confidence and perceived liquidity. This is a network effect that snowballs from the growing use of a particular reserve currency over others.

Reserve currencies over time

Here is how the usage of reserve currencies has evolved over the last 15 years:

Currency composition of official foreign exchange reserves (2004-2019)
U.S. dollar Euro Japanese yen Pound sterling Other
2004 65.5% 24.7% 4.3% 3.5% 2.0%
2009 62.1% 27.7% 2.9% 4.3% 3.0%
2014 65.1% 21.2% 3.5% 3.7% 6.5%
2019 61.8% 20.2% 5.3% 4.5% 8.2%

Over this timeframe, there have been small ups and downs in most reserve currencies.

Today, the U.S. dollar is the world’s most powerful reserve currency, making up over 61% of foreign reserves. The dollar gets an extensive network effect from its use abroad, and this translates into several advantages for the multi-trillion-dollar U.S. economy.

The euro, yen and pound sterling are the other mainstay reserve currencies, adding up to roughly 30% of foreign reserves.

Finally, the most peculiar data series above is “Other,” which grew from 2% to 8.4% of worldwide foreign reserves over the last 15 years. This bucket includes the Canadian dollar, the Australian dollar, the Swiss franc and the Chinese renminbi.

Accepted everywhere?

There have been rumblings in the media for decades now about the rise of the Chinese renminbi as a potential new challenger on the reserve currency front.

While there are still big structural problems that will prevent this from happening as fast as some may expect, the currency is still on the rise internationally.

What will the composition of global foreign reserves look like in another 15 years?

Posted with permission of Visual Capitalist.

James Rickards says China might have imposed a gold standard on the IMF’s special drawing right

October 7th, 2019

…Read more

James Rickards describes the world’s second-largest economy as a Ponzi scheme

October 3rd, 2019

…Read more

The end is still nigh

August 21st, 2019

So James Rickards found time to write another doomsday survival guide

by Greg Klein

So James Rickards found time to write another doomsday survival guide

 

St. John wrote just one Book of the Apocalypse but James Rickards has finished six so far. His most recent, Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos, offers a warning and advice for the economic end times that he considers imminent. Exactly how and when that’ll happen, he doesn’t say. But this book continues his exposé of the world’s monetary system: “the real system as distinct from the one elites would have you believe exists.”

What Aftermath offers in addition to Rickards’ trademark pitch for gold are some very general tips on investment and asset allocation—so general, however, that they hardly merit a book. This volume’s strength comes in its essays, discussions and digressions on a variety of (usually related) topics.

Among the most important is public debt, primarily that of the U.S. Long unsustainable, the burden groans under a 300% increase over 20 years, currently fuelled by Donald Trump’s revival of trillion-dollar deficits. He gets away with it, though: “Entitlements and defense both get to gorge at the trough, so there’s no dissension in D.C. The only loser is the country.”

So James Rickards found time to write another doomsday survival guide

Among the less-acknowledged causes of American debt are student loans, “now more than 50 percent larger than the junk mortgage pile in the last financial crisis” and growing. Also growing are the default rates, already more than three times that of mortgages at the height of the 2007-to-2008 crisis.

Debt hardly distinguishes the U.S. from other countries, and the entire world remains at risk from contagious sovereign defaults in emerging countries. Rickards’ at-risk list might surprise some readers.

China is a Ponzi like Madoff. China has trillions of dollars in external dollar-denominated debt, wealth management products, bank loans, intercompany loans, and other financially engineered arrangements that can never be repaid. If everyone with a claim on China wanted her money back, China couldn’t come close to satisfying even a small portion of those seeking liquidity.

…. Apart from borrowed money, wasted infrastructure investment, and fictitious accounting, there is no Chinese economic growth miracle.

While the U.S. denominates its debt in U.S.-printable U.S. dollars, money-creation won’t work forever. The only thing supporting fiat currency is confidence, and that can’t last, Rickards argues. History, psychology and common sense demonstrate that “confidence in money is fragile, easily lost, and impossible to regain.”

Spreading to all reserve currencies, “this loss of confidence will be exacerbated by malicious efforts on the part of Russia, China, Turkey, Iran, and others to abandon dollars entirely and to bypass the U.S.-dollar payments system.”

This accumulation of risk factors is entirely new, and outside the experience of any trader or quant.

Contagion demonstrates one danger of interconnected systems, but exceedingly complex technology and financial instruments intensify the peril. Flash crashes only hint at the possibilities, Rickards suggests. “Markets now confront a lethal brew of passivity, product proliferation, automation, and hypersynchronous behavioral responses. This accumulation of risk factors is entirely new, and outside the experience of any trader or quant.”

Getting back to currencies, the author presents intriguing evidence that a gold standard is actually in place. Using research from D.H. Bauer, Rickards says that special drawing rights, the International Monetary Fund reserve asset that’s speculated to replace the U.S. dollar as the world currency, have been pegged to gold. Bauer’s data shows yellow metal hovering around SDR900, fluctuating no more than SDR50 in either direction.

 An important pillar of a global monetary reset seems already in place.

Rickards blames China. “Even if the peg is nonsustainable in the long run, it’s a clear short-run signal that China is betting on the SDR and gold, not the yuan or the dollar. An important pillar of a global monetary reset seems already in place.”

Sometimes digressive in his subject matter, Rickards’ other topics include an interesting perspective on the Uranium One purchase. He served on a CIA advisory board as manoeuvres by Frank Giustra and Bill and Hillary Clinton led to the company’s takeover by Rosatom. “It’s as if the deal were being handled inside the intelligence community on a special track, precisely to avoid the analysis our group was formed to provide.”

Another digression looks at the disturbing prevalence of surveillance, data mining and choice architecture to monitor and manipulate citizens. “Neofascist” China plans 600 million surveillance cameras, digital facial and gait recognition software and internet monitoring to reward its people for good deeds or penalize them for offences ranging from smoking in public to tweeting verboten thoughts.

Most plans for catastrophe will fall apart in the first five minutes of being needed.

He also criticizes some alternative end time strategies. “Most plans for catastrophe will fall apart in the first five minutes of being needed.” Survivalists holed up in bunkers will face “pop-up militias,” he warns. The ultra-rich, with plans to flee to their luxurious New Zealand estates, haven’t considered how they’ll get to the airport, how they’ll refuel their private planes en route, whether they’ll get past the NZ military on arrival, or how they’ll ensure the loyalty of their private security guards. The catastrophe will be worse than they imagine.

Even so, too many of his digressions are unnecessary, such as his tedious account of being locked out of his car, an unnecessarily long rebuttal of behavioural psychology and the rather weird discussion of finite size involving King Kong, Godzilla, skyscrapers and whales.

“Investors should not focus on the cause of the collapse (it’s a long list and the timing is uncertain),” he notes. Certainly the book’s rambling nature belies any sense of urgency. He even hopes to finish another volume before the catastrophe finally hits. That would be his seventh on the subject since 2012.

Update: Lynas responds to Malaysia’s six-month extension for rare earths processing plant

August 16th, 2019

by Greg Klein | August 15, 2019, updated August 16, 2019

Lynas gets a six-month reprieve to continue rare earths processing in Malaysia

Lynas expressed confidence in meeting government-imposed conditions
for its rare earths processing facility in Malaysia. (Photo: Lynas Corp)

 

Even a six-month reprieve augers well for Lynas Corp, the company emphasized on August 16. The Malaysian government granted an extension the previous day after threatening to shut down a plant that refines and separates material from Lynas’ Mount Weld rare earths mine in Western Australia.

The government’s original conditions called for Lynas to render the mine’s output non-radioactive before shipping it to Malaysia and to remove the low-level radioactive waste that has accumulated since 2012. The deadline was September 2, the former licence expiry date.

Lynas said yesterday’s decision was consistent with a science-based government report released last December and the company remains confident of meeting conditions.

The decision’s only significant divergence from the report, Lynas stated, was the requirement that cracking and leaching operations be moved out of Malaysia within four years. Earlier this month CEO Amanda Lacaze said the company hopes to have a C&L facility operating in Western Australia by 2022, part of the company’s $500-million expansion planned by 2025. The new facility would allow Lynas to ship non-radioactive material to Malaysia for further processing and separating.

As for the presence in Malaysia of radioactive water leach purification residue—a reported 580,000 tonnes has piled up so far—the company has six months to find a location and obtain consent for a permanent deposit facility.

Although the government rejected Lynas’ proposal to convert WLP residue into soil conditioner for agricultural use, the company vowed to continue R&D into other possible outcomes.

“While we may have preferred a longer licence … the effect is essentially the same because under either structure there will be an administrative application for renewal,” Lacaze told a briefing for analysts and investors.

In a statement issued earlier that morning, she expressed optimism “that this decision will bring an end to the politicization of Lynas over the past year.”

Last May Lacaze emphasized Lynas’ determination to keep its supply chain separate from the involvement of China, which dominates all aspects of global rare earths production and processing. Considered critical elements by the U.S. for several uses including defence, REs figure prominently in the American-Chinese trade disputes. Consequently the U.S. has implemented policies to encourage production from domestic and allied resources and technology.

Read more about Lynas Corp.

Read more about rare earths, critical elements and the U.S.-China trade dispute.

Lynas gets a six-month reprieve to continue rare earths processing in Malaysia

August 15th, 2019

This story has been updated and moved here.

Northern Minerals shifts RE offtake from China to Germany; Malaysia’s Lynas decision imminent

August 12th, 2019

by Greg Klein | August 12, 2019

A new Western Australia rare earths producer has signed an agreement with a German engineering group to take on 100% of production from the miner’s pilot plant. The deal replaces a previous 100% offtake contract with Chinese firm Lianyugang Zeyu New Materials Sales, which was cancelled last week due to breach of agreement, ASX-listed Northern Minerals announced on August 12.

Northern Minerals shifts REE offtake from China to Germany; Malaysia’s Lynas decision imminent

Browns Range production,
before and after pilot plant processing.

The agreement with thyssenkrupp Materials Trading, a company that claims to have 158,000 “colleagues” on all continents, allows the customer to buy all heavy rare earth carbonate from the Browns Range pilot plant. Future sales may involve separated heavy rare earths. The two companies will also work together on separating technology and potential expansion of the project, Northern Minerals stated. The offtake agreement includes all stockpiled product as well as future output. Production began in July 2018.

Currently in the first phase of a three-stage development plan, Northern Minerals plans to become the “first significant producer of dysprosium outside of China.”

The same day as the offtake announcement, the company reported its board is considering a $20-million investment offer from a Chinese entity. (All figures in Australian dollars.) Northern Minerals added it’s in negotiations with other potential investors. Having so far raised about $19.76 million of a previously offered $30-million private placement, the company expects to close the remainder by the end of August.

Meanwhile Australian RE producer Lynas Corp expects a decision any day now by the Malaysian government regarding the fate of the miner’s processing facility. Although the plant has operated since 2012, a new government demanded the company ensure all material sent to the country from the Mount Weld mine in Western Australia be rendered non-radioactive prior to shipment. The government also ordered the removal of radioactive tailings accumulated over seven years. Although the plant’s licence expires on September 2, Lynas officials repeatedly express confidence in the outcome.

The company added that Malaysian Prime Minister Mahathir Mohamad has said licence renewal would no longer require the removal of tailings. Nevertheless, Lynas plans to relocate its cracking and leaching operations to Western Australia by 2022.

Read more about Lynas Corp.