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Last week, Jamaica’s REE processing facility moved a step closer to completion. Meanwhile, REE prices continued to rise on the back of the Chinese government’s crackdown on illegal operations in Ganzhou.
Jamaica is not typically seen as a hotspot for rare earth elements (REEs), but this year its involvement in the sector seems to be increasing.
February saw the country launch a joint venture project with Japan to explore the potential of REEs found in Jamaican red mud. Now, Jamaica is close to being able to start processing those REEs, Philip Paulwell, the nation’s science, technology, energy and mining minister, told state-owned Jamaica Information Service (JMI). As of last Tuesday, all of the necessary processing equipment was en route to Jamaica and construction work on the US3-million plant was over 95 percent complete.
The Jamaica Bauxite Institute and Japan’s Nippon Light Metal (TSE:5701), the project’s sole funder, are driving activities forward. Initially, over the course of a six-month pilot, researchers from the two countries will treat about “30 tonnes of dry red mud to potentially extract some of the 17 rare-earth elements, which have been found in bauxite by-product,” the JMI article states. Ultimately, the hope is that the plant will extract around 1,500 metric tons (MT) of REEs per year.
Price update
The uptick in REE prices that began earlier this month, when the Chinese government began confiscating concentrate from illegal REE operations in Ganzhou, has continued this week, Metal-Pages reported.
Currently, dysprosium oxide quotes are coming in at 1,950 to 2,000 renminbi (US$318 to $326) per kilogram, while 4N europium oxide is being sold at 4,000 renminbi ($652) per kilogram by some suppliers.
Praseodymium/neodymium metal prices may rise to 500,000 renminbi ($81,461) per MT in the next few weeks, while prices for praseodymium/neodymium oxide could reach as high as 400,000 renminbi ($65,169) per MT, Metal-Pages quotes some bullish market players as saying.
The rise in praseodymium/neodymium prices has prompted some suppliers to increase their praseodymium prices; it is being offered at 460,000 renminbi ($74,944) per MT, up from the 410,000 to 420,000 renminbi ($66,798 to $68,427) per MT seen earlier in the week.
In contrast, the lanthanum export market has been fairly inactive, with prices for 99- to 99.9-percent lanthanum oxide being held at $6.50 to $7 per kilogram.
Some producers have already shut their doors as a result of the Chinese government’s crackdown, and more are expected to do so in the coming weeks as the country begins a series of “strict government inspections” on illegal REEs. As a result, many market participants believe that good things are in store for prices, said Metal-Pages.
Junior company news
On July 15, Pacific Wildcat Resources (TSXV:PAW) reported further assay results from reverse-circulation drilling at its Kenya-based Mrima Hill niobium and rare earth project. Seven holes — equivalent to 655 meters — have been drilled since the company last reported results from the project on June 26.
The company’s press release notes that highlights include:
- 105 meters at 7.17-percent total rare earth oxide (TREO) from surface to end of hole, including 53 meters at 8.12-percent TREO
- 100 meters at 6.18-percent TREO from surface to end of hole, including 13 meters at 10.59-percent TREO
- 86 meters at 6.23-percent TREO from surface
The next day, Ucore Rare Metals (TSXV:UCU,OTCQX:UURAF) announced that it has started a work program to develop an initial plan of operations for its Bokan-Dotson Ridge rare earth project, located in Southeast Alaska. When the plan of operations is completed the permitting process for the project will be triggered.
Jim McKenzie, president and CEO of Ucore, commented, “[t]he development of the Plan of Operations is a significant step forward for the Project and submitting the document to the USFS to initiate the NEPA review will be an important milestone for the Company. We’re looking forward to the completion of the NEPA review process, and obtaining the Record of Decision, in order to initiate construction of the Project.”
Across the Atlantic Ocean, Tasman Metals‘ (TSXV:TSM,NYSEMKT:TAS) Swedish subsidiary, Tasman Metals AB, was selected as a “key mining industry partner” for the EURARE program, a recently launched research program funded in part by the European Commission.
The aim of the program, which was begun after the rare earth supply crisis of 2010 to 2011, is to “develop a sustainable exploitation scheme for Europe’s rare earth ore deposits,” according to Tasman’s press release. It brings together “the partners required for a complete European REE supply chain.”
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Related reading:
Rare Earth Stocks Gain on Chinese Mine Closures
Tasman Metals: Focused on Swedish Heavy Rare Earths
INN VIDEO: Tasman Metals’ Mark Saxon Sees Bright Future for Swedish HREEs