Tag Archives: Rare earths

GR Engineering cements Yangibana rare earth project EPC contract

GR Engineering Services has been awarded an engineering, procurement and construction (EPC) contract with Yangibana Pty Ltd, a wholly owned subsidiary of Hastings Technology Metals Limited, for a beneficiation plant and associated infrastructure for the Yangibana rare earths project in Western Australia.

As previously announced on May 3, 2023, GR Engineering had entered into a binding term sheet with Yangibana Pty Ltd for these works.

The contract sum, including the provisional sum, is A$210 million ($138 million) as previously disclosed. This is made up of a fixed price component of A$180 million for the beneficiation plant and a provisional component of A$30 million mainly for the plant and tailings storage facility earthwork.

GR Engineering has commenced early works up to an agreed capped amount. The EPC contract is conditional on GR Engineering being issued with a commencement notice, which is dependent on Hastings finalising funding for the project as well as a number of other pre-conditions standard for an EPC contract.

Construction is planned to be complete in the March quarter of 2025 with first concentrate on truck in the June quarter of 2025

Under the A$210 million contract, GRES will design and construct the Yangibana beneficiation plant and all associated infrastructure, including engineering, manufacture, supply, installation, dry and wet commissioning, and testing of the facility over a period of less than 18 months. When completed, the plant will have a feed capacity of 1. 1 Mt/y and a rare earth concentrate output capacity of 37,000 t/y, Hastings says.

Orexplore furthers critical mineral core scanning push with Green Critical Minerals, Northern Minerals agreements

Mineral scanning technology company, Orexplore Technologies Limited, has made inroads into the critical minerals industry after signing two scanning agreements with companies from that sector and progressing an R&D project in collaboration with Uppsala University.

Green Critical Minerals has extended its engagement for a further 2,500 m of core scanning, in addition to 300 m already scanned in 2023 via Orexplore’s laboratory service. This order brings the total value of the engagement to approximately A$226,000 ($149,589) and encompasses scanning of graphite-bearing drill core and the delivery of ore-sorting evaluation, grade proxy modelling and emerging graphitic flake analysis solutions using the dataset captured by the company’s GeoCore X10® hardware, Orexplore says.

Green Critical Minerals is developing the McIntosh graphite project in Western Australia, which, it says, currently has the third largest graphite resource in Australia with 1.1 Mt of contained graphite.

Northern Minerals, meanwhile, has extended its engagement for an additional 900 m of core scanning, following the 420 m already scanned to date. This order brings the total value of the engagement to approximately A$130,000 and encompasses scanning of rare earth-bearing drill core and crushed samples. The project focuses on delivering two Orexplore solutions – ore-sorting evaluation and a proof of concept for operational grade control, the company said.

Northern Minerals is developing the Browns Range heavy rare earth project in Western Australia, which is currently the subject of a definitive feasibility study.

On top of these two agreements, Orexplore said its research and development on critical minerals accelerates with a project it is carrying out in collaboration with Uppsala University in Sweden having recently progressed to scanning samples from Talga Group Limited’s (ASX: TLG) Swedish resources. It has also received a development grant of A$77,000 for advancing a project on lithium scanning technologies with a Swedish lithium producer, which is supported by Sweden’s Vinnova innovation agency.

Metso and Torngat Metals partner on rare earth processing pilot

Torngat Metals Ltd and Metso have signed a contract for large-volume pilot scale processing of ore, with the focus of the agreement being to pilot test the beneficiation of ore extracted from Torngat’s Strange Lake rare earth project in Québec, Canada.

This project is a critical driver for the electrification value chain, specifically the manufacturing of permanent magnets for electric motors, wind turbines and other low carbon technologies, Metso said.

The process incorporates advanced technologies including X-ray sensor-based ore sorting, magnetic separation and flotation, based on Metso’s proprietary and leading-edge technology. This work is being executed in close collaboration with GTK Mintec (Geological Survey of Finland), the company added.

“We are very pleased to expand this partnership with Metso, not only because of its world leading mineral processing expertise and capabilities, but also because of the values we share in our commitment to enabling sustainability and decarbonisation in our operations and in our communities,” Dirk Naumann, President and CEO of Torngat, said.

The first phase of work will be completed by the end of 2023, resulting in the production of a rare earth concentrate. The next phase of work will use the rare earth concentrate to scale-up and optimise the subsequent process steps to produce a mixed rare earth solution, based on Metso’s expertise in acid- and heat-based minerals processing and purification, it said. Metso will also provide production-scale engineering and offer technology and equipment solutions for future commercial operations with Torngat.

Torngat is a private company developing the Strange Lake project in the Nunavik region of Québec to provide a long-term responsible supply of rare earths required for technologies including electric vehicles and wind turbines.

GR Engineering books A$210 million EPC beneficiation plant order for Yangibana rare earths project

GR Engineering Services says it has entered into a binding term sheet with Yangibana Pty Ltd, a wholly-owned subsidiary of Hastings Technology Metals Limited, for the engineering, procurement and construction (EPC) of the beneficiation plant and associated infrastructure for the Yangibana rare earths project in Western Australia.

The project is approximately 250 km north east of Carnarvon.

Hastings said the plant will have a feed capacity of 1 Mt/y and a rare earth concentrate output capacity of 35,000 t/y of rare earth mineral concentrate at a grade of 27% total rare earth oxides.

GR Engineering and Hastings have agreed the material terms of the EPC contract in the binding term sheet. The EPC contract for the works will be finalised shortly and GR Engineering will commence early works. If the EPC contract is entered into, it is expected that the contract sum, including provisional sum, will be A$210 million ($140 million).

Tony Patrizi, Managing Director of GR Engineering, said: “GR Engineering is pleased to have received the binding term sheet for this world-class rare earths project in the Gascoyne region of Western Australia. It will be exciting to work on this project as it is focused on globally critical minerals that are used as key components for electric vehicles and wind turbines.”

Arafura Rare Earths appoints Worley-owned Chemetics for Nolans sulphuric acid plant

Arafura Rare Earths says it has entered into an agreement for the supply of the sulphuric acid plant for its 100%-owned Nolans neodymium-praseodymium (NdPr) project in the Northern Territory of Australia.

The sulphuric acid plant will be supplied by Chemetics® Inc, a global supplier of sulphuric acid and other specialty chemical facilities, and a wholly-owned subsidiary of Worley.

The sulphuric acid plant for Nolans will utilise Chemetics proprietary CORE-SO2 process which significantly reduces capital cost, maintenance cost and sulphur dioxide emissions from the plant. The Chemetics plant is also significantly smaller than a traditional sulphur burning acid plant allowing increased use of modularisation reducing the volume of site installation labour. These savings were incorporated into the recent Nolans project update.

The initial work package includes finalisation of specifications and engineering design to allow the plant to be incorporated into the overall project design.

Arafura’s General Manager Projects, Stewart Watkins, said: “Letting the contract for the supply of the acid plant to a global supplier such as Chemetics provides confidence around the outcomes for the project when the team reaches commissioning. Along with that, the progress made on the selection of our key vendors and placement of long lead orders means that we are set to commence early works construction in the coming weeks.”

As well as the sulphuric acid plant, the company has also placed several other the orders during recent weeks which are on the critical path for the project, including:

  • Sulphation bake and cooler paddle dryers with ANDRITZ, primarily to secure detailed design and long lead materials for fabrication;
  • Pipe supply for the first 8 km of HDPE piping for the main water supply pipeline from the borefield to the plant site, which is required for early construction works;
  • Potable and wastewater treatment plants for the construction camp; and
  • Equipment and tankage for temporary construction water supply in advance of the pipeline being installed to site.

NRW Holdings companies win work from Wonbindi Coal, Lynas Rare Earths, Rio Tinto

NRW Holdings Limited companies Golding Contractors and DIAB Engineering have banked some significant contracts in the mining space, the biggest of which is a Mining Service Agreement with Wonbindi Coal Pty Ltd at the Baralaba North Mine in Queensland.

The Baralaba North award is valued at around A$800 million ($546 million) and continues the strong relationship between Golding and Wonbindi where Golding has provided the contract mining services at the Baralaba North Mine over the last four years.

The scope of work remains the same and includes maintaining and operating a client-owned fleet of equipment, producing an ultra-low volatile pulverised coal injection product. The pact commenced on July 1 and follows on from a Binding Letter of Intent the two companies signed earlier in the year.

DIAB Engineering, meanwhile, has been awarded two contracts with a value of circa-A$78 million.

At the Lynas Rare Earths Processing Facility in Kalgoorlie, Western Australia, DIAB has been awarded a contract for a key component of the facility, being the construction of the Filter Building used to process and further concentrate the rare earth. The works to be performed include the supply, fabrication and erection of the Filter Building, the installation of associated equipment and piping, and electrical and instrumentation installation.

DIAB will carry out all the circa-1,500 tonne fabrication works for the Filter Building at its facilities in Geraldton using around 80 local Midwest team members. A construction workforce of 60-80 will then be mobilised to site progressively over the coming months.

Lynas Kalgoorlie Pty Ltd, a wholly owned subsidiary of Lynas Rare Earths, is the only scale producer of separated rare earths outside of China. It mines and processes rare earth ore at Mt Weld, in the north-eastern Goldfields region of Western Australia. Lynas’ new processing facility in Kalgoorlie will treat rare earth concentrate from Mt Weld to produce a rare earth carbonate.

At Rio Tinto Iron Ore’s Tom Price mine in Western Australia, DIAB Engineering, has secured the supply, fabrication and installation of multiple dust suppression systems to be utilised on the Tom Price and Western Turner crusher and conveyor systems. These systems will assist in improved control and suppression of dust generated from processing activities, reducing the impacts on personnel and plant operations, it says. The project will run for approximately 12 months, employing 60 people at its peak.

Appian continues to flex ‘multi-faceted’ skillset in latest mining deals

Private equity firms might not be the most obvious port of call for companies in need of the technical skillsets to transition ‘projects’ to ‘mines’, but, in recent years, Appian Capital Advisory LLP has shown the industry that it has all the credentials to help with this transition.

The firm, headquartered in London but calling on expertise from across the globe, has just completed divestments of the Santa Rita nickel mine and the Serrote copper mine, both in Brazil.

Sibanye-Stillwater, the purchaser, agreed to pay Appian $1 billion, plus a 5% net smelter return (NSR) royalty over potential future underground production at Santa Rita, for the assets, with the private equity firm, in the process, pocketing a pretty profit.

In 2018, Appian acquired Atlantic Nickel (owner of Santa Rita) out of bankruptcy for $68 million and Mineração Vale Verde, the owner of Serrote, for $40 million.

It reoriented the former large-scale open-pit mine into a much more conservative – and profitable – mine able to produce around 20,000-25,000 t/y of contained nickel sulphide equivalent. It also carried out extensive drilling to showcase its underground potential, prolonging its mine life.

The plans at Serrote, meanwhile, were re-evaluated in a DFS. Having completed project construction and commissioning ahead of schedule and under budget, the mine is now ramping up to nameplate capacity of 20,000 t/y of copper equivalent.

These two divestments represent the fourth and fifth portfolio sales the company completed this year. The others included the sale of its 13.2% interest in West Africa-focused gold company Roxgold to Fortuna Silver Mines, the sale of its 0.28% NSR royalty over the large-scale Caserones copper mine in Chile and the repayment of a royalty Appian held over Peak Resources’ Ngualla rare earth project in Tanzania.

The diversity of these asset exits is indicative of how well-versed mining-focused Appian is in the sector’s ‘hot commodities’, but there is more to appreciate here than purely financial gains and well-timed acquisitions and divestments.

“People know that not all money is created equal,” Michael W Scherb, Founder and CEO of Appian (pictured), told IM. “We have a team that is able to solve specific operational challenges – we can call on specialists to solve problems on the process flowsheet side, for instance – while providing financial advice to avoid expensive streams and set assets up for profitability.”

Scherb’s words are backed up by a solid track record: seven of nine investments it has made have resulted in mine builds. Its divestments have also provided healthy returns.

The company has been able to do this by recruiting industry specialists – mining and finance – and educating them on the facets they need to succeed in both the private equity and mining world.

“People that join Appian need to be multi-faceted,” Scherb said. “We get mining folks to think like investors and vice versa,” he said.

This has seen them build a project review team populated with former consultants and an operations team full of mine personnel with operational experience.

“We then get all personnel to cross-train across these teams to avoid any siloed disciplines,” Scherb explained.

Take Santa Rita as an example of where this expertise paid off.

The company carried out a six-month due diligence process on Santa Rita, which led to the development of a more defensive and low-cost mine plan able to see the asset through nickel price peaks and troughs – in stark contrast to the plan former operator Mirabela Nickel had for the asset.

Among the operating changes implemented were the use of a smaller, locally procured equipment fleet of 40 t trucks (Santa Rita previously used Caterpillar 777 90 t and 785 137 t payload trucks), the use of shorter benches and tighter blasting patterns.

This resulted in better grade and fragmentation control, improving the feed to the crusher.

It also defined a significant underground resource base at the mine, which it will still be leveraged to thanks to the NSR royalty.

Such moves were based on exploiting the nickel sulphides at Santa Rita. This reoriented focus aligned with the industry preference for nickel tied to the battery materials space, which eventually paid off with the amount of interest in the asset.

This blend of technical and financial expertise has served the company – and any company it has an interest in – well. Backed by a long-term investment philosophy where its funds are 12 years in duration, the company can make moves aligned with the realities and timelines associated with turning assets into mines.

The next asset on the Appian books likely to move into construction-ready territory is Kalbar Operations’ Fingerboards mineral sands project, which focuses on the Glenaladale deposit, about 20 km northwest of Bairnsdale in Victoria, Australia.

Scherb said this project will be “build-ready” very soon, explaining that it is currently going through the permitting stage.

The project has the potential to be one of the world’s major producers of zircon, ilmenite, rutile and rare earths, and Kalbar is proposing an investment of over A$200 million ($148 million) in the development of a project able to produce around 575,000 t/y of heavy mineral concentrate over 15-20 years.

Scherb said Appian is keen to further pursue commodities associated with the electrification of industry, but he is aware of the premiums that may come with these deals.

“A lot of money has flooded into the battery metals,” he said. “We can be patient and are starting to look earlier stage in some investments.”

“Earlier stage” still has the potential to be producing in four- or five-year’s time, he clarified.

What’s clear is that the Appian team is gaining widespread recognition, with Scherb saying larger mining companies are starting to approach them with proposals that would see Appian gain operational control of assets, realising the firm has the right blend of “operational skill” and “value principles” to succeed.

Having acknowledged a skills shortage across the sector – one Appian is doing its bit to tackle with internship programs with universities in Canada, the UK and Australia – Scherb was confident the company’s talent would be retained and, ultimately, grow.

“In terms of talent retention, we at Appian offer experience of reviewing many different assets at different times in their lifecycle,” he said. “If you’re in-house at a mining company, you run the ruler over the same assets, stress testing them against different scenarios. We offer our teams variety that they cannot get in many places.

“At the same time, our structure means employees invest directly in companies to ensure they are correctly incentivised. This means they get to share in the profits.”

With plans to make one-to-three investments per year – along with the same number of exits – and expectations of committing its latest $775 million fund within the next two quarters, expect to hear more from Appian into 2022.

NioCorp working with Weir Minerals, NRRI on Elk Creek HPGR test work

NioCorp Developments Ltd is to initiate testing of Elk Creek project ore using high pressure grinding rolls (HPGR) technology from Weir Minerals.

HPGR technology is considered an energy efficient and low-emission alternative to conventional processing for reducing the size of the ore to enable the recovery of niobium, scandium, titanium, and potential rare earth products, NioCorp said.

The use of this technology in the project reinforces the company’s commitment to the environment and designing a sustainable operation, it added.

The testing is being conducted at the Natural Resources Research Institute (NRRI) of the University of Minnesota-Duluth, in partnership with Weir Minerals. During the testing, which is expected to take several weeks, around 3 t of Elk Creek drill core will be reduced to the 1-mm size needed for hydrometallurgical test work.

Working with Weir Minerals, NRRI acquired an industrial-scale Enduron® HPGR to carry out testing on a variety of ores with this process back in 2020. This is the only large scale HPGR dedicated to research in the US, NRRI claims.

“The network is expected to provide key data that will be used to properly size the HPGR unit for the potential ore throughput at the Elk Creek project, once project financing is secured and the project is operational,” NioCorp said.

The company is currently evaluating the next steps in its overall metallurgical test work program, which will focus on optimising and streamlining the existing processing flowsheet as well as establishing process routes for the potential recovery of rare earth products. The rare earth products that are of most interest to the company are, at present, neodymium-praseodymium (NdPr) oxide, terbium oxide and dysprosium oxide. As previously announced, the company has launched a review of the economic potential of expanding its currently planned product suite from the project to also include rare earth products.

An April 2019 feasibility study on Elk Creek, in Nebraska, USA, estimated average production of 7,220 t/y of ferroniobium, 95 t/y tpa of scandium trioxide and 11,642 t/y of titanium dioxide over the 36-year mine life.

Scott Honan, NioCorp COO, said: “After witnessing testing at NRRI, I was impressed with how the HPGR was able to handle the Elk Creek ore quickly and efficiently, with minimal noise and dust.

“We look forward to completing this phase of the test work and moving on to look at further improvements to the existing flowsheet, including our new emphasis around the rare earths.”

Mkango, Grupa Azoty PULAWY assess potential for Polish rare earth separation plant

Mkango Resources has joined with Grupa Azoty Zakłady Azotowe Pulawy SA to work towards development of a rare earth separation plant in Poland.

A new Polish wholly owned subsidiary of Mkango, Mkango Polska, has been established, with an experienced Country Director for Poland, Jarosław Pączek, appointed. Pączek will be joined by rare earth separation experts, Carester, and a strong team of technical advisors and engineers to help steer the collaboration.

Grupa Azoty PULAWY is part of The Grupa Azoty Group, the EU’s second largest manufacturer of nitrogen and compound fertilisers, and a major chemicals producer. Its products are exported to over 20 countries around the world, including Europe, the Americas and Asia, according to Mkango.

The parties have signed an exclusive lease option agreement for a site adjacent to Grupa Azoty PULAWY’s large-scale fertiliser and chemicals complex at Pulawy in Poland. This location is served by excellent infrastructure, access to reagents and utilities on site, and an attractive operating environment, resulting in a highly competitive operating cost position for the plant, based on scoping studies to date, Mkango says.

“Located within a Polish Special Economic Zone, the site provides excellent access to European and international markets,” it added. “Production from the plant will strengthen Europe’s security of supply for rare earths, used in electric vehicles, wind turbines and other green technology and strategic applications, and aligns with European initiatives to create more robust, diversified supply chains.”

The plant is expected to initially produce approximately 2,000 t/y of neodymium, praseodymium and/or didymium (NdPr) oxides as well as a heavy rare earth enriched carbonate, containing approximately 50 t/y dysprosium and terbium oxides. It is also expected to produce lanthanum cerium carbonate. Mkango is also evaluating marketing and processing options for the heavy rare earth enriched carbonate and lanthanum cerium carbonate.

“The plant will use best-in-class, conventional and proven technology, and will benefit from excellent rail and road infrastructure as well as the direct supply of the required processing reagents from Grupa Azoty PULAWY,” Mkango said. “It will also have access to a local skilled workforce, on-site engineering and project development expertise and R&D science institutes.”

Based on scoping studies undertaken to date, the plant is expected to have highly competitive operating costs.

Further feasibility studies will be completed by Carester, SENET (a DRA Global Group company) and a local engineering firm, Prozap, together with support from Grupa Azoty PULAWY. Mkango is also working closely with ANSTO to optimise feed specifications for the plant.

Development of the plant is expected to be underpinned by the sustainable supply of a purified mixed rare earth carbonate from Mkango’s Songwe Hill project in Malawi (pictured). Mkango will also evaluate the potential to process third-party feeds. The feasibility studies for the plant will run in parallel with those for the Songwe Hill rare earths project.

Mkango says it will also seek to maximise the renewable energy content and minimise the carbon impact of the developments in both Malawi and Poland, as part of the feasibility studies.

William Dawes, Chief Executive of Mkango, said: “Development of this plant will underline Mkango’s unique positioning in the rare earths sector. Our integrated ‘mine, refine, recycle’ strategy, encompassing sustainably sourced light (NdPr) and heavy (Dy/Tb) rare earths from Malawi and rare earth magnet (NdFeB) recycling in the UK, via our interest in HyProMag, is now enhanced by the opportunity to create a rare earths separation and downstream hub in Poland, working with one of Europe’s largest chemical and fertiliser companies.

“Rare earths are a vital component of magnets required in many technologies needed for the green energy transition. Therefore, their security of supply is becoming increasingly important to governments worldwide, especially in Europe and the US.

“We have carried out extensive due diligence on the site and believe the development of the plant in Poland will enhance the sustainable supply of rare earths into Europe, as well as bringing significant benefits to the region, creating new jobs and potential, additional, downstream developments.”

Andrzej Skwarek, Management Board Member of Grupa Azoty PULAWY, said: “We look forward to working together with Mkango on this exciting project, which complements the adjacent activities of Grupa Azoty PULAWY, benefiting from synergies in relation to reagents, by-products, utilities and infrastructure. As an industry leader in Poland, Grupa Azoty PULAWY welcomes this potential new development to the region and will continue to support Mkango as it progresses through the feasibility studies.”

Jarosław Pączek, Mkango’s Country Director for Poland, said: “This is a very exciting development for Poland at a time when Europe is focused on strengthening supply chains for critical materials and transitioning to a greener economy. The creation of a new European hub for rare earths at the heart of central Europe in Poland complements battery, electric vehicle and renewable energy developments in the region, with a site strategically located for European trade and transport routes and benefiting from plug and play access to reagents and utilities. I look forward to working with Mkango and Grupa Azoty PULAWY on this ground-breaking project for Poland and Europe.”

Northern Minerals rare earth pilot plant keeps up thyssenkrupp REC deliveries

Northern Minerals’ Browns Range rare earth pilot plant in Western Australia has continued to churn out more product, with the company set to soon make a shipment of more than 40,000 kg to offtake partner thyssenkrupp Materials Trading GmbH.

The Browns Range pilot plant has now surpassed a new production milestone of 210,000 kg of rare earth carbonate (REC), Northern Minerals said.

A shipment of 40,406 kg of REC that contains 1,835 kg of dysprosium oxide and 233 kg of terbium oxide is ready at Browns Range for delivery to thyssenkrupp, bringing total production of REC from the pilot plant to 211,109 kg.

The REC produced to date contains a total 103,731 kg of rare earth oxide, which, in turn, contains 9,751 kg of dysprosium oxide and 1,245 kg of terbium oxide: critical elements in the permanent magnet motors used in E-mobility powertrain applications.

Northern Minerals CEO, Mark Tory, said: “Despite the operational and supply chain challenges in the past 12 months, the global trend toward electrification of transport continues to accelerate as a result of regulatory changes and bold decisions by car manufacturers in transition to fully-electric fleets.

“Browns Range is still the most strategically placed heavy rare earths operation in the western world, and we continue to apply our significant R&D learnings to successfully produce batches of REC for our European offtake partner thyssenkrupp from our pilot plant in the Kimberley region of Western Australia.”

Northern Minerals started producing rare earth carbonate through the Browns Range pilot plant in October 2018 as part of a three-year pilot assessment of economic and temporary technical feasibility of a larger-scale development at Browns Range.

The company expects to commission a Steinert sensor-based ore sorter at Browns Range in the June quarter as part of its latest R&D work at the pilot plant.