In order to achieve the United Nations climate change management goals, the world needs to quickly turn to clean energy, which means we need to establish or ensure a reliable source of rare earths. Although the United States and Canada have made some progress in this regard, Australia will also need to play a key role.

When viewing the rare earth reserves chart by country/region, China shows the largest reserves, followed by Vietnam, Brazil, Russia, India, and Australia, in order. The United States ranks eighth, and Canada is not in the top ten. Given Australia’s excellent record as a reliable supplier of raw materials, it is not surprising that the West expects Australia to accelerate rare earth production, especially the rare earth production needed to support the vigorous development of clean technology industries such as electric vehicles and wind energy. , And solar energy.

ClearWorld.us put it very well, stating:

"The development of renewable energy depends on sufficient quantities of rare earth minerals, especially neodymium, terbium, indium, dysprosium and praseodymium. These are used to produce solar panels and wind turbines. If the world is to achieve the greenhouses sought in the Paris Climate Agreement The gas emission target, by 2050, the supply of these minerals must increase 12 times."

Rare earth is a key element of the clean technology revolution

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Australian listed rare earth companies:

Lynas Rare Earth Limited (ASX: LYC) ("Lynas")

Lynas is the world's second largest producer of neodymium and praseodymium ("NdPr"). Linus owns the Mt Weld rare earth mine, one of the highest grade rare earth mines in the world, and the Mt Weld ore concentrator located in Western Australia. Linus also owns the Linus Advanced Materials Plant (LAMP), an integrated manufacturing facility that separates and processes rare earth materials in Malaysia. Lynas 2025's growth strategy includes plans to build Kalgoorlie rare earth processing facilities (cracking and leaching) in Australia and plans to build LRE/HRE separation and specialty materials facilities in the United States. Linus has a market value of 7.3 billion Australian dollars.

Iluka Resources Ltd. (ASX: ILU) ("Iluka")

Iluka is a relatively new (April 2020) rare earth producer in the Eneabba project in Western Australia. Iluka intends to increase sales of 50,000 tons/year of 20% monazite-zircon concentrate for further processing at sea. Iluka has an offtake agreement for 50,000 tons per year. Iluka is working on the second phase of the Eneabba project, which involves researching the technology of beneficiation and purification of monazite to make it 80% of the concentrate for sale downstream in the value chain. Iluka is known as an Australian producer of heavy mineral sands, zirconium and titanium. Iluka's market value is 3.5 billion Australian dollars.

Vital Metals Limited (ASX: VML) ("Vital")

Vital recently started mining ore at its Nechalacho' mine in the Northwest Territories (NWT) of Canada, and began ore processing at Vital's. Under construction, the Saskatoon cracking and leaching facility is expected to begin in 2022. The Nechalacho mine is a high-grade, light-weight rare earth (bastnaesite) project with 94.7Mt of world-class resources, and an REO of 1.46% (measurement, indication and inference). The North T area of ​​Necharacho is mined by Vital and has 101,000 tons of high-grade resources, with an LREO content of 9.01% (NdPr content of 2.2%). Vital and Ucore Rare Metals Inc. signed a non-binding memorandum of understanding to supply mixed rare earth carbonates to it from the first half of 2024. The market value of Vital Metals is A$250 million.

Explorer/Developer (in alphabetical order):

Arafura Resources Limited (ASX: ARU) ("Arafura")

Arafura 100% owns the Nolan's Bore rare earth project 135 kilometers from Alice Springs, Northern Territory, Australia. Arafura said: "The project is based on low-risk mineral resources, which are likely to meet most of the world's NdPr needs. This is a NdPr project of global significance and strategic significance. Once developed, it will become a high-performance NdFeB permanent magnet market. Major suppliers of these key minerals."

The deposit contains 56 million tons of mineral resources that meet JORC 2012 standards, and the average grade of total rare earth oxides (TREO) is 2.6%. 26.4% of the total rare earth content is NdPr. The project is supported by the Australian Export Finance Agency (EFA) and the Northern Australia Infrastructure Fund (NAIF), through non-binding letters of support to provide support for the proposed senior debt financing of up to A$200 million and A$100 million, respectively. Arafura is seeking to raise more funds to start the project. Arafura recently stated: “The momentum of the offtake discussions has expanded the scope of participation and included strategic investment options as part of the Nolan project funds.” The market value is AU$379 million.

Australia Rare Earth Limited (ASX: AR3) ("AREL")

AREL is exploring an important “clay-like” rare earth element deposit, which is located in its Koppamurra project, which is distributed in approximately 4,000 square kilometers of tenements in South Australia and Victoria. Past exploration of the Koppamurra area has shown that it contains mineralization containing the rare earth elements neodymium, praseodymium, dysprosium and terbium. The Koppamurra project is an opportunity for “ionic clay” rare earths. In 2021, JORC's inferred mineral resources are 39.9Mt @ 725ppm TREO. The market value of AREL is A$98 million.

Australian Strategic Materials Limited (ASX: ASM) ("ASM")

ASM owns Dubbo Rare Earth Project in New South Wales, Australia. The Dubbo project is a 100% "construction ready" polymetal and rare earth project with the potential to become a major global supplier of specialty metals and rare earths. ASM's goal is a "mine-to-metal" strategy to extract, refine, and manufacture high-purity metals and alloys for direct supply to global technology manufacturers. The market value is A$1.92 billion.

Northern Minerals Limited (ASX: NTU)

Northern Minerals owns the Browns Range heavy rare earth mineral project in Western Australia. Northern Minerals has established a pilot plant to test some deposits and prospects containing high-value dysprosium and other heavy rare earths (HRE) (such as yttrium), which are located in xenotime mineralization.

The company stated: "Northern Minerals is positioned to become the world's first important Dysprosium producer outside of China. Dysprosium accounts for 60% of the Browns Range project (project) revenue, which is a key value driver of the project and is also the marketing of Northern Minerals. The core of the strategy. With high-value, high-purity, dysprosium-rich products, the company will become a long-term and reliable supplier of dysprosium and other important heavy rare earths to the world market." The market value is 339 million Australian dollars.

Peak Resources Limited (ASX: PEK)

Peak Resources owns 75% of the Ngualla Tanzania rare earth project, which the company claims is one of the largest and highest grade undeveloped rare earth projects in the world. The ore reserves of the Ngualla project are 18.5 million tons, and the REO is 4.8%; 22% of the mineral resources are NdPr, and the expected mine life is 26 years. The project is currently in the funding stage and the BFS was completed in 2017. BFS summary details are here. About 90% of the project's revenue will come from NdPr. Peak Resources status: "Operating costs are $34.20/kg NdPr* oxide, demonstrating the potential to become the world's lowest cost fully integrated rare earth development project." The market value is AUD 135 million.

As the world shifts to cleaner energy and technology, demand for rare earths will grow strongly this decade, and it would be wise for investors to re-examine the rare earth industry.

After the government announced that it would receive a boost of A$2 billion (through a loan facility) to support the industry, Australia's important mineral projects have recently become news. This bodes well for Australian rare earth miners joining Lynas as a producer. Stay tuned, because the industry looks set to shine in this decade.

Matthew Bohlsen is a senior editor at InvestorIntel.com. Holds a graduate diploma in applied finance and investment, and a graduate diploma in financial planning. He... <Read more about Matthew Bolson>

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Thanks for your very interesting article. I have invested in Syrah Resources, Lynas and ASM.

With all due respect, an important question for renewable energy investors to consider is in which direction will the Biden administration move, renewable energy raw materials (this should become clearer in 2022)?

Will the 800-pound gorilla appear in the mining construction of a potential ROW RE department in the United States? Or will the United States only conduct mining within friendly or joint borders? Obviously, this decision (regardless of its political motives) will have a significant impact on niche renewable energy miners (and investors) in the United States/rest of the world. We know that Canada has recently discussed this exact issue with the United States as part of the focus.

In addition, we saw recently an executive from a renewable energy company (finally) talked about their competition with others. However, this is not only competition against companies, but also competition against countries. For all cooperative talks (such as Australia and the United States today), all countries hope to get a share of the huge new energy pie that is coming (especially the political commitment of the United States).

For example, Japan’s strategic focus is Lynas and CM in Namibia. South Korea supports ASM, and the United States already supports REEMF, LYC and MP. In addition, as the article points out, private companies believe that Vital has established its own relationship with REEtec, and Energy Fuels is cooperating with Chemours and NEO.

There are some acquisitions in the renewable energy sector, but how many of these renewable energy entities will be selected for the new chain is questionable; similarly, geography is likely to have a major impact on the selection. Personally, I look for "concrete" initiatives taken by potential renewable energy entities (strategic support, private equity financing, etc.; not just assumptions, promises, forecasts or memorandums of understanding, etc.). IMO, early renewable energy promoters will enjoy most of these upcoming opportunities (excluding the few opportunities with Chinese raw material destinations).

Thank you for writing this article.

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