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US, Europe RE supply chain emerges from EF, Neo deal

  • Spanish Market: Metals
  • 01/03/21

US uranium producer Energy Fuels will sell mixed rare earth (RE) carbonate cracked from US monazite to Canada's Neo Performance Materials, which will separate it into rare earth oxides at its plant in Estonia, creating the beginnings of the first US-Europe rare earth supply chain in decades.

Monazite contains all the light and heavy rare earths needed for high-performance neodymium iron boron (NdFeB) magnets, which will be critical to the transition to electric vehicles as well as many electronics and industrial applications. A byproduct of mining mineral sands for titanium and zirconium, monazite is relatively abundant, but there are development barriers. Significant quantities of uranium and thorium must be separated and removed to access the rare earths in early-stage processing known as cracking. The high cost and regulatory burden associated with this left many monazite operations around the world unviable. Today the only country that processes monazite for rare earths is China, which is importing increasing amounts.

The processing of monazite within existing infrastructure for handling radioactive materials offers a compelling solution.

"Energy Fuels provides the missing link in solving this challenge," said Constantine Karayannopoulos, chief executive of Neo Performance Materials which owns and operates the Silmet light rare earth separation plant in Estonia. "They extract valuable uranium from monazite and put it to good use while also recovering the monazite's rare earth content."

Short timeline

The development timeline for the project has been short. Two years ago Colorado-based EF began to explore using its existing uranium production capacity at the White Mesa mill in Utah to crack monazite, add the extracted uranium to its production stream, store the thorium and produce a mixed rare earth carbonate that can be sold for processing into oxides.

Early last year after initial testing, EF cracked monazite on a pilot scale at Mesa. It started collaborating with Neo in April and in October produced commercial pilot quantities of a mixed rare earth carbonate that was successfully trialled at Neo's Silmet plant. Then in December EF signed a three-year supply contract with US mining and chemical company Chemours' Offerman plant for at least 2,500 t/yr of monazite sands mined in Georgia and the southeastern US.

Under the terms of a non-binding agreement signed today, EF will process monazite concentrates supplied by Chemours at White Mesa starting in March to April. Upon completion of the commercial-scale pilot programme at White Mesa, likely during the second or third quarter of this year, Neo will purchase and process a minimum of 840 t/yr of contained total rare earth oxide for sale to its customers.

"Energy Fuels is proud to help solve this challenge for both US and European markets," EF chief executive Mark Chalmers said.

Silmet is operating at 75pc of capacity because its Russian suppliers, which have been supplying the plant with raw materials since the 1970s, are unable to provide a greater amount of rare earth carbonate. So the supply from White Mesa will make use of available processing capacity without disrupting existing production.

The future

EF anticipates sending all or a large portion of its mixed rare earth carbonate to Neo for several years. It is also evaluating the potential to develop rare earth separation and other downstream capabilities at White Mesa.

Significant quantities of monazite are produced around the world from heavy mineral sand mining operations and there are large resources in the US, Australia, India and South Africa. EF is seeking to secure additional supply of monazite and has set a goal of processing 15,000 t/yr. It estimates that this would only represent 2pc of existing throughput and tailings capacity at White Mesa.

Silmet does not currently have the capacity to recover heavy rare earth elements, such as dysprosium and terbium which are needed for high-performance rare earth magnets. The White Mesa material will primarily be used to produce neodymium and praseodymium oxides, which are the largest rare earth component by volume in magnets, as well as other light rare earth value-added products. But as sufficient demand develops in Europe, Neo will look at adding heavy rare earth separation capacity at Silmet.


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20/11/24

ArcelorMittal could close two service centres in France

ArcelorMittal could close two service centres in France

London, 20 November (Argus) — Europe's largest steelmaker ArcelorMittal is contemplating closing two service centres in France as part of a restructuring at its Centres de Services business in the country. The company informed staff on Tuesday that it might close its Reims and Denain sites because of a "sharp drop in activity among its industry and automotive customers", the company told Argus . Negotiations with trade unions will begin shortly, it said. Rumours about the potential closures have been circling since just before a large industry event in Hannover, Germany, in late October. Further consolidation and restructuring is expected throughout the European service centre market because of the fall in real consumption, and the difficult financial position it has caused for some processors. Most service centres have been selling processed sheet at a loss in recent months, because of weak end-consumption. German cold-roller Bilstein, that sells predominantly to the automotive industry, will reduce headcount and is contemplating closing one of its five lines, or reducing shifts across its business. There have also been market discussions about ArcelorMittal selling other automotive-facing service centres in Europe, as part of a wider reorganisation of the EU processing sector. Germany's largest steelmaker, ThyssenKrupp, has closed some of its distribution sites in its home country. Participants note the service centres are not part of ThyssenKrupp Steel Europe, which is still in talks with Daniel Kretinsky over taking a 50pc share in the business. ThyssenKrupp's ownership change could have wider ramifications for the service centre and steelmaking sector in general, with Kretinsky open to finding a strategic partner. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Graphjet launches Malaysian biomass-to-graphite plant


20/11/24
20/11/24

Graphjet launches Malaysian biomass-to-graphite plant

Singapore, 20 November (Argus) — Nasdaq-listed Graphjet Technology has started operations at its artificial graphite plant in Malaysia, which will produce battery-grade graphite using recycled palm kernel shells (PKS), the firm said on 19 November. Graphjet's facility has the capacity to produce 3,000 t/yr of graphite by recycling up to 9,000 t/yr of PKS, which is sufficient to produce batteries for 40,000 electric vehicles (EVs)/yr. The firm has already received its first shipment of PKS, it said. Graphjet has another artificial graphite production facility planned in US' Nevada, and it plans to produce hard carbon at the Malaysian facility to use as feedstock at the Nevada facility. The Nevada facility is expected to have the capacity to recycle 30,000 t/yr of PKS to produce 10,000 t/yr of battery-grade artificial graphite and is slated to begin production in 2026, said Graphjet in April. China, the dominant producer of graphite, added a number of graphite products into its export licensing scheme at the end of last year. The move back then alarmed its neighbours, Japan and South Korea , which are major battery-producing countries and they have since been looking to reduce their dependency on Chinese graphite. China's graphite flake exports fell by 23pc to 44,103t during January-September following the exports curb, according to Chinese customs data. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan, Peru sign deal to enhance copper supply chain


19/11/24
19/11/24

Japan, Peru sign deal to enhance copper supply chain

Tokyo, 19 November (Argus) — The Japanese and Peruvian governments have signed a strategic partnership to bolster the copper supply chain, with a comprehensive road map to promote bilateral business opportunities for natural resources. This agreement came as Japan accelerates efforts to secure copper supplies, while Peru is a key global copper supplier. The two countries rolled out a comprehensive road map for enhancing political and economic relationships on 17 November. This includes organising an annual bilateral meeting for mining and energy investment as well as conducting joint research on efficient mining operations, such as removal of impurities from copper ores, according to the road map. Unlike conventional initial agreements that are typically signed without a specific closing date, the Japanese-Peruvian road map has set a 10-year timeline that will end by 2033. This seems to reflect Japan's sense of urgency in securing base metal supply including copper. "Japan would like to continue to co-operate with Peru to strengthen the resilience of the supply chain of mineral resources such as copper", said Japanese prime minister Shigeru Ishiba in Peru on 17 November. Japan's current strategic energy plan that was revised in 2021 aims to lift base metal self-sufficiency to 80pc by 2030, up by around 30 percentage points from the 2018 level. But the strategy appears to not be on track, the country's ministry of trade and industry Meti reiterated in late October without disclosing the current rate. Japan appears to be especially concerned about copper supply. Meti forecasts global copper demand to double to around 50mn t in 2035 following the global electrification of applications including electric vehicles, while there will likely be a 10mn t/yr supply shortage. The country's domestic copper ingot demand is forecast to exceed 1.4mn t by 2030, according to Meti, up by 400,000 t from the 2022 level. This is partially attributed to the adoption of more artificial intelligence, it added. Japan is making efforts to diversify copper supply sources, given the deterioration in quality of copper supplied by the world's biggest producer Chile, Meti said. Peru and Argentina are prominent suppliers in the region, according to Meti, adding that Japanese government support is essential for acquiring stakes in upstream operations in those countries, given their higher risks. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Argentina pulls delegation from Baku


13/11/24
13/11/24

Cop: Argentina pulls delegation from Baku

Montevideo, 13 November (Argus) — Argentina's government today withdrew its delegation from the UN Cop 29 climate summit in Baku, Azerbaijan. The country's foreign affairs ministry confirmed to Argus that the delegation had been told to leave the event, which began on 11 November and will run through 22 November. No reason was given for the decision, but it fits the general policies of President Javier Milei, who has expressed skepticism about climate change. Milei eliminated the country's environment ministry shortly after taking office in December 2023. He is also pursuing investment to monetize oil and gas reserves, with a focus on the Vaca Muerta unconventional formation. Vaca Muerta has an estimated 308 trillion cf of natural gas and 16bn bl of oil, according to the US Energy Information Administration. In October, the government created the Argentina LNG division with a plan to involve private companies and the state-owned YPF to produce and export up to 30mn metric tonnes (t)/yr of LNG by 2030. It wants to export 1mn bl of crude. The plans are closely linked to a new investment framework, known as RIGI, that will provide incentives for large-scale investments. The administration is also pushing hard for investment in critical minerals, including copper and lithium. Argentina has the world's second-largest lithium resources, estimated at 22mn t by the US Geological Survey. It has copper potential that the RIGI would help tap. The government has not specified if pulling out of Cop 29 means Argentina will withdraw from the Paris Agreement, which Argentina ratified in 2016. The country's nationally determined contribution calls for net emissions not to exceed 359mn t of CO2 by 2030. This represents a 21pc reduction of emissions from the maximum reached in 2007. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Guterres warns of exploitation in minerals race


13/11/24
13/11/24

Cop: Guterres warns of exploitation in minerals race

London, 13 November (Argus) — Demand for critical minerals vital to the electric vehicle and renewable energy sectors should be met without causing a "stampede of greed" that exploits local communities and harms those living in poverty, UN secretary-general Antonio Guterres has said. "We are here to respond to a key challenge — turning the energy transition towards justice," Guterres told the UN Cop 29 climate summit in Baku, Azerbaijan. Guterres warned that as the energy transition accelerates, it could present more risks than opportunities for many developing countries rich in metals such as copper or lithium unless managed with justice and equity. "For developing countries rich in resources, [the energy transition] is a huge opportunity to generate prosperity, eliminate poverty and drive sustainable development. But too often this is not the case," he said. "Too often we see the mistakes of the past repeated in a stampede of greed that crushes the poor," Guterres added. "We see developing countries ground down to the bottom of value chains, as others grow wealthy on their resources." In response to concerns in developing countries rich in battery minerals, the UN in April established the Panel on Critical Energy Transition Minerals. The panel of governments, international organisations, industry and civil society developed "voluntary principles" for managing value chains for critical energy transition minerals. The panel's report outlines seven voluntary guiding principles covering environmental and human rights, responsible investment and finance, transparency and anti-corruption measures, and international co-operation. It also identifies five "actionable recommendations", including establishing an advisory group to accelerate benefit-sharing and economic diversification, developing a mineral traceability framework and creating a fund to address mine closures and other mining legacies. The UN code has no enforcement mechanisms, and so implementation depends on the participation of industry, governments and civil society. By Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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