The first new rare earths mine outside China to recover heavy rare earth elements is getting closer to production. Northern Minerals Ltd has signed a memorandum of understanding with a Chinese company to build a pilot plant for its Browns Range mine located in northern Western Australia.

·        Sinosteel Equipment & Engineering Co (Sinosteel MECC) selected as EPC contractor for Browns Range pilot plant

·        Non-binding MoU between Northern Minerals and Sinosteel MECC signed in Beijing

·        As part of the MoU, Sinosteel MECC has agreed to defer 20% of payments for 24 months, with a right to convert into Northern Minerals Ordinary shares.

Sinosteel MECC has been selected as the EPC contractor for the 60,000 t/y Browns Range pilot plant. The company plans to construct the plant modules in China then ship them to the site for installation. The pilot plant was approved in September.

The contract size for the plant is estimated at ~A$60 million, including the following: Pilot plant process facilities (beneficiation and hydrometallurgical process plants) – A$28 million; Mining and associated infrastructure (including tailings storage facility, camp, water supply, airstrip) – A$22 million; and Commissioning/Working Capital requirements – A$10 million.

Under the MoU, Sinosteel MECC has agreed to defer payments totalling A$12 million for a period of 24 months. Alternatively, Sinosteel MECC has the right, at its election, within nine months of practical completion, to convert the deferred payment amount into Ordinary Northern Minerals’ shares.

Northern Minerals’ Managing Director George Bauk welcomed a team with the calibre of Sinosteel MECC to the Browns Range Project, acknowledging it as a strong endorsement of the company’s vision. “We are excited to be partnering with a strong party such as Sinosteel MECC. The final pieces in the business plan are coming together as we move towards a final investment decision.”

The picture shows Northern Minerals Managing Director, George Bauk and Sinosteel MECC General Manager, Wang Jian, signing the MoU in Beijing