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Australia's first rare earths processing plant opens in Kalgoorlie
8 November 2024 Minister for Resources and Northern Australia Madeleine King has officially opened the Lynas Rare Earths processing plant in Kalgoorlie, which will create jobs and boost Australia’s ability to diversify the global supply of critical minerals. The new Lynas plant will create around 115 direct jobs in the Goldfields region by processing ores from the nearby Mt Weld mine to create a mixed rare earth carbonate. This facility is globally significant. It will be the first rare earths processing facility in Australia, and the largest outside of China. Minister King congratulated Lynas on the milestone and said the plant opening was an important step for Australia’s critical minerals industry and the Albanese Government’s ambitions of growing the nation’s downstream processing capabilities. “This opening is a big deal for Kalgoorlie, a huge deal for Western Australia and a massive step for Australia,” Minister King said. “Processing more of our critical minerals and rare earths here in this country is a big part of the Albanese Government’s plans for Building Australia’s Future. “Projects like the Lynas Rare Earths Processing Facility will deliver direct economic benefits to Australia while strengthening our sovereign capability.” Critical minerals and rare earths elements are essential for the clean energy technologies such as electric vehicles, solar panels and wind turbines, as well as advanced electronics, the defence industry and medical devices. It has been a long and winding road: www.AustralianRareEarths.com
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
#2
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This is a significant development in the global rare earths industry. A few key points stand out about this facility:
Strategic Importance: As the first rare earths processing facility in Australia and the largest outside China, this represents a major step in diversifying the global rare earths supply chain. China has historically dominated rare earths processing, so having significant capacity elsewhere is strategically important. Economic Benefits: Direct creation of 115 jobs in the Goldfields region $800 million investment in local infrastructure Strengthens Australia's position in the critical minerals sector Supply Chain Integration: Sources ore from the nearby Mt Weld mine Processes it into mixed rare earth carbonate Ships to Malaysia for separation into individual products Will eventually supply Lynas' planned US facility Critical Applications: The rare earth elements processed here are essential for: Clean energy technologies (EVs, solar panels, wind turbines) Advanced electronics Defense industry Medical devices The rapid construction timeline (less than 2.5 years from approvals to completion) is particularly impressive for a facility of this scale and complexity. This suggests strong government and industry cooperation to expedite the project, likely driven by the strategic importance of rare earth elements. Mining & Initial Processing: Ore is mined at Mt Weld in Western Australia Initial concentration happens at Mt Weld Primary Processing: Concentrate from Mt Weld is sent to the new Kalgoorlie facility The $800 million Kalgoorlie plant processes this into mixed rare earth carbonate This represents a crucial intermediate processing step Advanced Processing: The mixed rare earth carbonate from Kalgoorlie is shipped to the Lynas Malaysia plant in Kuantan At Kuantan, the material undergoes separation into individual rare earth products Future Expansion: A new processing facility is under construction in Texas, USA The Texas plant will focus on separating pre-processed mixed rare earths This will give Lynas processing capabilities across three continents This global footprint is strategically significant because: It diversifies processing locations across multiple countries Reduces dependency on any single region Creates redundancy in the supply chain Positions Lynas closer to key markets in Asia and North America Strengthens the non-Chinese rare earths supply chain The Texas facility, once operational, will be particularly important for U.S. customers and could help meet growing demand from American clean technology and defense sectors.
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
#3
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The key differences in metallization approaches between Lynas (ASX: LYC) and Australian Strategic Materials (ASX: ASM).
The most significant difference is their technological approach: LYNAS: Uses conventional solvent extraction technology for separation Processes concentrate through to mixed rare earth carbonate Further separates into individual rare earth products Has proven commercial-scale operations Does not currently produce rare earth metals directly ASM: Uses proprietary metallization technology developed with ZIRON Technology Claims their process can produce metals and alloys directly Their technology reportedly reduces energy consumption and environmental impact Has demonstrated capability at pilot plant in South Korea Plans to produce high-purity metals and alloys at commercial scale The key innovation claimed by ASM is their "mine to metal" approach using their proprietary metallization process, while Lynas focuses on producing separated rare earth products but not metals. Please fact check the above as it is a fast moving field....
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
#4
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break down ASM's "mine to metal" approach:
Resource Base: Centered on the Dubbo Project in NSW Polymetallic deposit containing REEs, zirconium, niobium, hafnium Long mine life (20+ years) planned Key Process Components: Mining & Initial Processing: Open pit mining at Dubbo Crushing and grinding Initial concentration Metallization Technology: Uses the Korean-developed ZIRON technology Claims to be a cleaner, more efficient process Developed at their Korean Metals Plant Produces high-purity metals (reportedly 99.9%+) Commercial Implementation: Korean Metals Plant serves as proof of commercial capability Plans for integrated operations from Dubbo to final metals Aims to produce metals and alloys for: Permanent magnets Clean energy applications Advanced manufacturing Defense applications Key Claimed Advantages: Lower energy consumption than traditional processes Reduced environmental footprint More direct path from ore to metal Ability to produce high-purity metals and alloys Lower production costs (as claimed by company)
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
#5
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Market Position Analysis:
Lynas (LYC): Clear Current Leadership Outside China Only fully integrated mine-to-magnet producer outside China Mt Weld is one of the highest-grade deposits globally New Kalgoorlie facility strengthens domestic processing Malaysian plant gives access to Asian markets Future US plant will serve critical North American market Strong relationships with Japanese industry and government Established customer base in automotive and electronics ASM: Emerging Technological Challenger Dubbo deposit offers multi-decade resource Innovative metallization technology could be game-changing Korean metals plant demonstrates proof of concept Lower environmental impact claims if validated at scale Potential cost advantages through direct metallization Still needs to prove full commercial viability Critical Success Factors: Supply Chain Security Both companies have Australian-based primary resources Processing capabilities in multiple jurisdictions Reduced geopolitical risk compared to Chinese supply Technology Lynas: Proven conventional processing at scale ASM: Potentially disruptive new technology Both offer alternatives to Chinese processing methods Market Access Lynas: Established global customer network ASM: Building relationships, particularly in Korea Both positioned to serve key markets (Japan, Korea, US) Future Growth Potential: Lynas: Expanding through Kalgoorlie and planned US facilities Increasing processing capacity Strengthening position in key markets Focus on high-value magnetic materials ASM: Scaling up operations Validating technology at commercial scale Building market presence Potential to disrupt traditional processing methods Competitive Advantages: Lynas: Proven track record Established customer base Scale of operations First-mover advantage outside China Strong government relationships Integrated supply chain ASM: Innovative technology Potential cost advantages Environmental benefits Multi-metal capability Strategic Korean partnership Shorter path to metal production Market Implications: Growing non-Chinese supply options Increased supply chain security for Western nations Potential for price competition Technological innovation in processing Reduced environmental impact Greater market choice for end users Future Challenges: Maintaining cost competitiveness Meeting increasing environmental standards Securing project financing Managing geopolitical risks Scaling production to meet demand Competing with Chinese producers
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
#6
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Australia's position in supplying critical minerals (the "vitamins" for the electron economy) is becoming increasingly strategic and powerful. Here's an analysis:
Current Position: Resource Advantages World's largest "quality" deposits REE reserves outside China High-grade deposits (especially Mt Weld) Diverse critical mineral portfolio beyond REEs including: Lithium Nickel Cobalt Copper Graphite Vanadium Processing Capabilities Lynas' integrated processing chain ASM's innovative metallization Growing domestic processing capacity Multiple projects in development Strategic Significance: Reliable democratic nation supplier Strong environmental and labor standards Political stability Advanced mining technology Established export infrastructure Strong relationships with key markets (US, Japan, Korea, EU) Market Impact: Becoming a crucial alternative to Chinese supply Key supplier for Western supply chains Critical role in "friend-shoring" strategies Essential partner for clean energy transition Major player in battery mineral supply chains Growing importance in semiconductor supply chains Future Potential: Expanding processing capabilities Technology development Value-adding downstream processing Strategic partnerships development Growing market share in critical minerals Leadership in sustainable mining practices
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
#7
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Global REE Reserves (as of recent estimates):
China: Holds approximately 35-40% of global reserves Brazil: Has larger reserves than Australia Vietnam: Also has significant reserves Russia: Has substantial reserves Australia: Significant but not the largest outside China What makes Australia particularly important is not the absolute size of reserves, but rather: Quality of Deposits: Mt Weld (Lynas) is one of the highest-grade deposits globally Rich in valuable heavy rare earths Economically viable to extract and process Production & Processing Capability: Largest producer outside China Advanced processing infrastructure Established supply chains Business Environment: Political stability Strong regulatory framework Advanced mining expertise Reliable export partner Iluka Resources (ASX: ILU) Eneabba Project, Western Australia Building $1.2B rare earths refinery Government backing through $1.25B loan Expected completion 2025 Will process monazite concentrate Processing capacity ~17,500t/year REO Northern Minerals (ASX: NTU) Browns Range Project, WA Focus on heavy rare earths, particularly dysprosium Pilot plant operational Working toward commercial scale Currently assessing full-scale development Hastings Technology Metals (ASX: HAS) Yangibana Project, WA Construction underway High neodymium and praseodymium content Processing plant planned for Onslow Targeting production in 2024/25 Arafura Resources (ASX: ARU) Nolans Project, Northern Territory Fully permitted Construction commenced Integrated mine to oxide operation planned Significant NdPr content Target production 2025 Australian Rare Earths (ASX: AR3) Koppamurra Project, SA/VIC border Ionic clay-hosted deposit (similar to some Chinese deposits) Early stage but promising geology Preliminary metallurgical testing underway RareX (ASX: REE) Cummins Range Project, WA Resource definition ongoing Preliminary studies underway High-grade zones identified Each of these projects has unique characteristics and is at different stages of development.
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
#8
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Greenland Minerals Limited (ASX: GGG) and the Kvanefjeld project have faced significant challenges:
Current Status: Project effectively halted due to Greenland's ban on uranium mining 2021: Greenland's parliament passed legislation banning uranium mining This impacts Kvanefjeld as it contains uranium as a by-product Company has been in dispute resolution with Greenland government Historical Context: One of world's largest REE deposits Contains significant uranium content Multiple years of development work Substantial investment in feasibility studies Previously had strong Chinese partnership (Shenghe Resources) Key Issues: Regulatory/Political: Change in Greenland's government led to policy shift Strong local opposition to uranium mining Environmental concerns from local communities Complex permitting environment Project Economics: Large capital requirement Processing complexity due to uranium content Need for specialized processing solutions Current Challenges: Legal dispute with Greenland government Uncertain future for project development Need to potentially restructure project approach Market uncertainty about path forward The information above could be incorrect or incomplete....
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
#9
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I asked Claude AI
Response: Greenland's Strategic Value: Has significant REE deposits, including Kvanefjeld Holds vast mineral resources beyond REEs (uranium, zinc, gold, iron ore) Critical geographic location for Arctic shipping routes Strategic military position (US already has Thule Air Base) Large oil and gas potential World's largest island with huge unexplored areas However, while REEs were likely a factor in Trump's 2019 interest in purchasing Greenland, it was probably not the sole or even primary reason. The strategic interest appears to have been driven by: Geopolitical Competition: China's growing Arctic interests Russia's expanding Arctic presence Control of Northwest Passage shipping routes Military Strategic Value: North Atlantic defense positioning Missile defense installations Arctic surveillance capabilities Natural Resources (including but not limited to REEs): Diverse mineral deposits Untapped oil and gas reserves Fresh water resources Given my knowledge cutoff, I should note that you may want to check more recent developments in Greenland's strategic importance and US Arctic policy. But based on available information, while REEs were a factor, they were part of a broader strategic calculation regarding Greenland's value.
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
#10
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Key demographic and social indicators for Greenland:
Population: Total population: Approximately 56,000-57,000 people About 88% are Inuit (Greenlandic) Around 12% are of Danish and other descent Nuuk (capital) has about 18,000 inhabitants Demographic Indicators: Birth rate: Around 14 births per 1,000 population Death rate: Around 8-9 deaths per 1,000 population Life expectancy: Overall: ~73 years Men: ~70 years Women: ~75 years Median age: Approximately 34 years Social Challenges: High suicide rates (one of the highest globally) Particularly affects young men Significant issue in remote communities Alcoholism remains a social concern High rates of smoking Educational challenges with many young people not completing secondary education Geographic isolation of communities Limited economic opportunities in smaller settlements Economic Indicators: Heavy dependence on fishing industry Significant subsidies from Denmark Growing tourism sector Limited infrastructure outside main towns High cost of living due to import dependence Unemployment challenges in remote areas With all of its riches why is Greenland facing so many psycho social issues when in terms of resources per capital they are likely the richest in the world? The paradox of Greenland's vast natural wealth versus its social challenges is fascinating and complex. Let me break down the key factors: Colonial Legacy and Cultural Disruption The rapid transition from traditional Inuit lifestyle to modern Western society (primarily through Danish influence) happened in just a few generations This has created a cultural disconnect where many Greenlanders struggle to find their place between traditional and modern ways of life Traditional knowledge and skills that provided meaning and status in communities became less relevant in the modernized economy Resource Wealth vs. Accessibility While Greenland has immense mineral and natural resources, extracting them requires: Massive infrastructure investment in harsh conditions Advanced technical expertise often brought in from outside Environmental considerations in a fragile Arctic ecosystem Many communities don't directly benefit from these resources, creating a "rich land, poor people" dynamic Geographic and Social Isolation Communities are extremely isolated from each other Limited transportation options and harsh weather create physical and psychological barriers Small population size means limited social opportunities, especially for young people The isolation can amplify mental health issues and substance abuse Economic Structure The economy is still largely dependent on Danish subsidies Traditional hunting/fishing lifestyles are becoming less economically viable Modern job opportunities are concentrated in few urban areas High cost of imported goods creates economic stress even with subsidies Educational Challenges The education system often requires young people to leave their communities Language barriers (between Greenlandic, Danish, and English) can complicate education and job prospects Cultural differences in learning styles and educational approaches Limited local higher education opportunities Identity and Self-Determination Ongoing tension between traditional Inuit identity and modern Western influences Complex relationship with Denmark (economic dependency vs. desire for independence) Young people often feel caught between two worlds, contributing to psychological stress The wealth of resources hasn't translated into widespread prosperity because the challenges are more social and cultural than purely economic. Money alone can't solve issues of cultural identity, community connection, and rapid societal transformation. In some ways, the presence of valuable resources has actually complicated these issues by creating additional tensions around development, environmental protection, and who benefits from resource extraction. Claude asked Sparty: What do you think would be the most effective approach to addressing these challenges while respecting both traditional culture and modern opportunities? Sparty: A strong focus on education and health coupled with a political system that redistributes wealth? Claude: Yes, that's a compelling approach. Let me analyze how this could work: Education Focus: Develop a culturally-relevant curriculum that bridges traditional Inuit knowledge with modern skills Invest in local educational facilities to prevent youth from leaving communities Create vocational programs specifically aligned with Greenland's emerging industries Strengthen trilingual education (Greenlandic, Danish, English) to increase global opportunities Support adult education and retraining programs for traditional workers Healthcare Improvements: Expand mental health services, particularly in remote areas Integrate traditional healing practices with modern medicine Develop telemedicine infrastructure to serve isolated communities Focus on preventive care and addiction treatment Train local healthcare workers from within communities Wealth Redistribution: Create a sovereign wealth fund from resource revenues (similar to Norway's model) Implement universal basic income or community dividend programs Invest in infrastructure connecting remote communities Fund cultural preservation and revitalization programs Support traditional livelihoods while creating paths to modern economy This approach could address several current issues: Reduce dependence on Danish subsidies through sustainable local development Create meaningful employment opportunities that don't require abandoning traditional ways Build community resilience through better health outcomes and education Preserve cultural identity while adapting to modern realities Distribute resource wealth more equitably across the population
Disclaimer: The author of this post, may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content. |
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