Australian mining company ABx Group has signed an MOU with Canada-based Ucore Rare Metals to enhance the Australia-US rare earths supply chain.
The collaboration aims to establish a binding offtake agreement for ABx to supply mixed rare earth carbonate (MREC) to Ucore and potentially see Ucore invest in ABx's Tasmanian rare earths project.
ABx has discovered a significant ionic adsorption clay rare earth element (REE) resource in Tasmania, with high grades of dysprosium and terbium.
The Australian Nuclear Science and Technology Organisation has validated the high ionic proportion of the resource.
Ucore, with its RapidSX technology, is advancing REE separation in Ontario, supported by the US Department of Defense and the Canadian Government, and planning to scale up operations in Louisiana, US.
The MOU outlines a path for ABx to become a preferred supplier of rare earth products to Ucore, with Ucore having a 'first right of refusal' for half of ABx's annual output for at least five years.
The companies will also explore investment and financing opportunities, potentially involving stakeholders from the rare earths industry, governments and private investors.
Ucore chairman and CEO Pat Ryan said: “Ucore is excited to engage with ABx as we continue our efforts to establish a Western supply chain comprising diverse global projects. The prospect of securing a stable supply of MREC with high heavy rare earth content from Australia is very appealing to Ucore.
“This partnership builds on our commitment to establish relationships within the Australian private sector and between US and Australian Government agencies as we work to establish rare earth manufacturing in the US and across the West.”
The alliance extends to developing a comprehensive product flowsheet and a total project development strategy, encompassing laboratory, pilot and demonstration plant testing.
Both companies will share insights into the global rare earth markets, focusing on permanent magnet rare earths, to identify opportunities and reduce risks for their projects.
Abx managing director and CEO Mark Cooksey said: “Ucore's progress and strategic importance is evidenced by their demonstration plant in Canada and significant financial support from both the Canadian and US governments.
“This agreement is further validation of the prospects for the ABx rare earth project in northern Tasmania.”
