EDITOR: | January 6th, 2020 | 51 Comments

738 Billion Defense Bill plus U.S. and Canadian Critical Materials Memorandum Equals Pivotal Year for Rare Earths

| January 06, 2020 | 51 Comments
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On Friday, we received a call from the CBC requesting more data on how the recent Fiscal Year 2020 National Defense Authorization Act (NDAA) that was passed on December 17th would impact the North American rare earths market. This combined with the recently signed memorandum of understanding (MOU) for critical materials signed on December 18th between the U.S. and Canada to reduce our dependence on Chinese rare earths and from all vantage points, Jack Lifton is correct in saying “2020 looks to be a pivotal year for rare earths”.

This timely passing of a “massive $738 billion defense authorization bill” by both the U.S. House and Senate, unquestionably holds ramifications for those of us following the North American public markets. In fact, it should mean that the leading players in this market should not only experience an increase in market valuations effective immediately, but this will inevitably result in much needed financings to achieve a successful rare earths supply chain in North America.

Jack Lifton commented that “The 2020 National Defense Authorization Act, which authorizes funding for the U.S. military, has expanded its recognition of the critical importance of the rare earths from the FY 2019’s mandate that the U.S. military only buy non-Chinese rare earth permanent magnets to the requirement that the U.S. Defense Department develop a plan and implement a strategy to discover or develop and integrate each of the necessary industrial components into a total domestic American rare earth supply chain for any and all rare earth enabled products utilized by the U.S. Dept of Defense.” He adds: “This is the greatest opportunity to revive a non-Chinese rare earth industry, since the movement to China of that industry in the last years of the twentieth century.”

In reviewing the 2020 NDAA, we have cut out the relevant excerpt from clause (c) listed under Section 850 titled “Acquisition and Disposal of certain Rare Earth Materials” for our readership.

NDAA Excerpt:

(c) REPORT ON SUPPLY CHAIN ISSUES FOR RARE EARTH MATERIALS.—Not later than 180 days after the date of the enactment of this Act, the Administrator of the Defense Logistics Agency, in coordination with the Deputy Assistant Secretary of Defense for Industrial Policy, shall submit a report to Congress assessing issues relating to the supply chain for rare earth materials. Such report shall include the following:

(1) An assessment of the rare earth materials in the reserves held by the United States.

(2) An estimate of the needs of the United States for rare earth materials—

(A) in general; and

(B) to support a major near-peer conflict as described in war game scenarios in the 2018 National Defense Strategy.

(3) An assessment of the extent to which substitutes for rare earth materials are available.

(4) A strategy or plan to encourage the use of rare earth materials mined, refined, processed, melted, or sintered in the United States, or from trusted allies, including an assessment of the best acquisition practices (which shall include an analysis of best value contracting methods) to ensure the viability of trusted suppliers of rare earth materials to meet national security needs.

While the above will inevitably be the catalyst for finally addressing the supply chain and inevitable sustainability issues in North America around these technology metals, I agree with Alkane Resources Ltd.’s (ASX: ALK | OTCQX: ANLKY) Managing Director Nic Earner who wrote “It is good to see continued moves by the US Government to establish independent supply. We look forward to seeing this lead into purchasing and commercial arrangements with US Defence suppliers in time.”

I have reached out to my favorite and most knowledgeable players in the industry with a request for them to provide practical feedback on what this means for our sector and how it will impact us in 2020. Their comments are below, and I have added everyone to the commentary section so you may respond directly to them.

———————

“In a complementary initiative, on December 18th, Canada and the U.S. signed a Memorandum of Understanding confirming Canada’s participation in the U.S.-led Energy Resource Governance Initiative (ERGI), part of a multi-pronged strategy by Washington to break free of China’s near-monopoly on so-called critical energy minerals essential for high-tech industries — producing everything from lithium batteries for electric cars, to smartphones and computers, wind turbines and defense assets. There are great economic benefits for Canada if our natural resource wealth and industrial capabilities can be adapted toward creating both new primary mineral supply sources and the value-added derivative products needed for electric vehicles as well as other clean technology and defense applications. I look forward to learning more about the Governments’ plans and I know that industry leaders and technical experts across the full supply chain can contribute toward creating collaborative and innovative solutions.” — Ian London, Chair, Chair, Canadian Rare Earth Elements Network (CREEN)

———————

This year should be the culmination of nearly 10 years of effort to move the U.S. government from endless studies and research projects to actually investing in the production of rare earth materials needed to support the Department of Defense, which should serve as a catalyst to long-term commercial viability for the industry. The DOD currently has three active Requests for Proposal to invest in establishing the capability to separate light and heavy rare earths through two new facilities, and the establishment of an inventory of NdFeB magnets. With the continued support of Congress and the Pentagon, 2020 should be the year that separates the wheat from the chaff in the prospective rare earth market, as only the most viable prospective producers of rare earths will be selected for government funding – the time for hype and pipe dreams is over as we move to an era of actual investment in production.” — Jeff Green, President, J.A. Green & Company

———————

These two initiatives are essential to attract and renew investment interest in the rare earth sector. Search has participated in the requests from both the US and Canadian governments, which identifies Search Minerals as a key participant in the North American rare earth supply chain. It is also helpful that Canada rare earth resources are considered ‘domestic source’ for these additional funding opportunities.” – Greg Andrews, CEO, Search Minerals Inc. (TSXV: SMY)

Dr. David Dreisinger, Vice-President, Metallurgy of Search Minerals adds: “Since our inception, we have met our objectives to have a proven processing technology which has low capital and operating costs, environmentally friendly and scalable. The new initiatives could help fund separation facilities or technologies in North America which could process our concentrate into individual oxides. Our resources contain both light and heavy rare earths required for many applications deemed critical under NDAA. The initiative allows the ability for new government funding opportunities required to advance the supply chain initiative, ie offtake agreement or direct investing.”

———————

The 2020 NDAA is an excellent additional step in a process that will ultimately lead to the establishment of a rare earth supply chain in the United States. Various agencies in the Department of Defense are now also beginning to put serious funding into the establishment of a domestic supply chain. Texas Mineral Resources and its funding and development partner USA Rare Earth Inc. is not waiting to take action. Rather, it has proactively established a Colorado based rare earth pilot facility that will ultimately be transported to Texas and ultimately envisions Texas as the center of a domestic rate earth and critical mineral supply chain.” — Anthony Marchese, Chairman, Texas Mineral Resources Corp. (OTCQB: TMRC)

———————

“The NDAA will bring focus on the rare earths sector and some much-needed funding to implement a North American strategy for rare earths. Six months is a very short time to summarize the state of the industry unless they have multiple inputs from those with knowledge of the space. Hopefully they will look at investing in the magnet supply chain, which needs rebuilding for the production of neodymium magnets (NdFeB). This initiative should build more confidence in the investment side and raise the profile for projects that can go into production in a short period of time.” – Alastair Neill, Trinity Management Ltd.

———————

“Trillions of dollars of all-important products are dependent on one dominant group which, in the past, has used rare earths for economic, political, social and technical gains. The United States’ most recent vocalized concern over threatened or possible disruption of rare earth supply is once again drawing attention to the potentially tenuous situation and the importance of the companies addressing this situation. Prudent business practice dictates the use of multiple suppliers particularly for key inputs. That said, the sourcing of rare earth raw materials in the United States and its allies can be arranged in the not too distant future, however, the paramount issue is establishing and implementing the technical know-how to process the raw materials into refined rare earths and then into useful applications and products. Processing capability is of paramount importance and is fundamental to unlocking supply dependency and will take considerably longer to implement due to the unique characteristics and the technical aspects of the rare earths.” — Tracy A. Moore, CEO of Canada Rare Earth Corp.

———————

“Lynas welcomes the U.S. Defense Department’s plan to encourage the development of a rare earth supply chain in the United States, or with trusted allies. As the world’s second largest Rare Earths producer, Lynas is well positioned to help the establishment of a sustainable and resilient rare earth supply chain from mine to magnet and to energy efficient electric motors.” – Lynas Corporation
———————
“Bringing together the NDAA, the Australian Government’s AUD4.4bn Defence Export Facility being made available to rare earth development projects, and joint U.S.-Australia critical minerals initiatives, it’s clear that not since the Government of Japan helped fund Lynas in 2011 to build their Malaysian process plant, have we seen Western governments, including those of the EU member states, focus, co-operate and now act on the issues that have allowed China to effectively take control of the rare earth market over the past 20 years. These efforts could result in further diversification (beyond Lynas) of NdPr and heavy rare earth supply, including by Arafura Resources, into ex-China NdPr metal-NdFeB magnet alloy/magnet manufacturing and the downstream clean energy supply chain.” — Richard Brescianini, Arafura Resources Limited
———————
“Medallion Resources has been focused on the development of rapid ‘go to production’ rare earth business model and proprietary extraction process using by-product monazite feedstocks. These are available throughout the Americas, Australia and Southern Africa. We recently announced the start of US site selection process for an initial REE extraction plant with capital requirements that are a fraction of traditional REE mining and processing operations.” — Donald Lay, President & CEO Medallion Resources

Tracy Weslosky

Editor:

Tracy Weslosky is the CEO for InvestorIntel Corp. and founder of InvestorIntel.com, a trusted source of online market information for investors in the capital markets, ... <Read more about Tracy Weslosky>


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Comments

  • Jack Lifton

    The 2020 National Defense Authorization Act, which authorizes funding for the U.S. military, has expanded its recognition of the critical importance of the rare earths from the FY 2019’s mandate that the U.S. military only buy non-Chinese rare earth permanent magnets to the requirement that the U.S. Defense Department develop a plan and implement a strategy to discover or develop and integrate each of the necessary industrial components into a total domestic American rare earth supply chain for any and all rare earth enabled products utilized by the U.S. Dept of Defense.This is the greatest opportunity to revive a non-Chinese rare earth industry, since the movement to China of that industry in the last years of the twentieth century.

    January 6, 2020 - 9:00 AM

    • SEM

      Jack when do you foresee a decision being reached? Sooner rather than later?

      January 14, 2020 - 9:00 PM

      • Jack Lifton

        I’m told by a usually accurate source that the decision on the heavy rare earth separation project winner(s) will be made in March.

        January 15, 2020 - 9:39 AM

        • Stewart McKay

          Thanks for your reply Jack much appreciated

          January 15, 2020 - 9:45 AM

        • Tim Ainsworth

          AFRL tender for LRE & HRE processing has a submission date 2nd March, indicates 165 calendar days to the date of award, mid August.

          January 15, 2020 - 9:52 AM

          • Jack Lifton

            Tim ,
            The solicitation to which you refer is in addition to the Army’s one that I reference. The one to which you refer is the latest and most comprehensive one so far. The DoD is clearly moving on a steep learning curve.

            January 15, 2020 - 10:10 AM

          • Tim Ainsworth

            Understand that Jack, point is the Army tender is hardly likely a duplication so highly probable any decision will follow the AFRL timeline, which is nominally mid August.

            January 17, 2020 - 8:35 AM

  • Ian London

    In a complementary initiative, on December 18th, Canada and the U.S. signed a Memorandum of Understanding confirming Canada’s participation in the U.S.-led Energy Resource Governance Initiative (ERGI), part of a multi-pronged strategy by Washington to break free of China’s near-monopoly on so-called critical energy minerals essential for high-tech industries — producing everything from lithium batteries for electric cars, to smartphones and computers, wind turbines and defense assets. There are great economic benefits for Canada if our natural resource wealth and industrial capabilities can be adapted toward creating both new primary mineral supply sources and the value-added derivative products needed for electric vehicles as well as other clean technology and defense applications. I look forward to learning more about the Governments’ plans and I know that industry leaders and technical experts across the full supply chain can contribute toward creating collaborative and innovative solutions.

    January 6, 2020 - 9:04 AM

  • Jeff Green

    This year should be the culmination of nearly 10 years of effort to move the U.S. government from endless studies and research projects to actually investing in the production of rare earth materials needed to support the Department of Defense, which should serve as a catalyst to long-term commercial viability for the industry. The DOD currently has three active Requests for Proposal to invest in establishing the capability to separate light and heavy rare earths through two new facilities, and the establishment of an inventory of NdFeB magnets. With the continued support of Congress and the Pentagon, 2020 should be the year that separates the wheat from the chaff in the prospective rare earth market, as only the most viable prospective producers of rare earths will be selected for government funding – the time for hype and pipe dreams is over as we move to an era of actual investment in production.

    January 6, 2020 - 9:10 AM

    • Rare Earths Investor

      Fully agree with Jeff Green. Investors have spent way too much time over the last 8 or so years listening to company hope and hype. 2020 should help small investors get a much greater sense of which RE companies will actually emerge within any new value chain. There are several dozens out there and most will find the need to either fold, hope for Chinese raw material interest or refocus on other material projects, should they be fortunate to have them. As for so many global issues facing us, 2020 will IMHO be pivotal for the RE sector.

      January 7, 2020 - 1:03 PM

  • Greg Andrews

    These two initiatives are essential to attract and renew investment interest in the rare earth sector. Search has participated in the requests from both the US and Canadian governments, which identifies Search Minerals as a key participant in the North American rare earth supply chain. It is also helpful that Canada rare earth resources are considered ‘domestic source’ for these additional funding opportunities.

    January 6, 2020 - 9:11 AM

  • Anthony Marchese

    The 2020 NDAA is an excellent additional step in a process that will ultimately lead to the establishment of a rare earth supply chain in the United States. Various agencies in the Department of Defense are now also beginning to put serious funding into the establishment of a domestic supply chain. Texas Mineral Resources and its funding and development partner USA Rare Earth Inc. is not waiting to take action. Rather, it has proactively established a Colorado based rare earth pilot facility that will ultimately be transported to Texas and ultimately envisions Texas as the center of a domestic rate earth and critical mineral supply chain.

    January 6, 2020 - 9:14 AM

  • Dr David Dreisinger

    Since our inception, we have met our objectives to have a proven processing technology which has low capital and operating costs, environmentally friendly and scalable. The new initiatives could help fund separation facilities or technologies in North America which could process our concentrate into individual oxides. Our resources contain both light and heavy rare earths required for many applications deemed critical under NDAA. The initiative allows the ability for new government funding opportunities required to advance the supply chain initiative, ie offtake agreement or direct investing.

    January 6, 2020 - 9:17 AM

  • Alastair Neill

    The NDAA will bring focus on the rare earths sector and some much-needed funding to implement a North American strategy for rare earths. Six months is a very short time to summarize the state of the industry unless they have multiple inputs from those with knowledge of the space. Hopefully they will look at investing in the magnet supply chain, which needs rebuilding for the production of neodymium magnets (NdFeB). This initiative should build more confidence in the investment side and raise the profile for projects that can go into production in a short period of time.

    January 6, 2020 - 9:57 AM

  • Tracy Moore

    Trillions of dollars of all-important products are dependent on one dominant group which, in the past, has used rare earths for economic, political, social and technical gains. The United States’ most recent vocalized concern over threatened or possible disruption of rare earth supply is once again drawing attention to the potentially tenuous situation and the importance of the companies addressing this situation. Prudent business practice dictates the use of multiple suppliers particularly for key inputs. That said, the sourcing of rare earth raw materials in the United States and its allies can be arranged in the not too distant future, however, the paramount issue is establishing and implementing the technical know-how to process the raw materials into refined rare earths and then into useful applications and products. Processing capability is of paramount importance and is fundamental to unlocking supply dependency and will take considerably longer to implement due to the unique characteristics and the technical aspects of the rare earths.

    January 6, 2020 - 9:57 AM

  • Wade Senti

    We are looking to bring back permanent magnet manufacturing to the United States.

    https://www.amlsuperconductivity.com/wp-content/uploads/2019/09/AML_Building_a_better_magnet.pdf

    January 6, 2020 - 10:17 AM

  • Joe O

    Approx when will funding be announced? I believe Ucore, TMRC and Lynas have put in propsals dont know who else

    January 6, 2020 - 4:01 PM

    • Reejoey

      One also must assume that Rare Element Resources, which Lifton recently said was way ahead of others in an interview with Scott, also submitted a proposal. But neither it or Lynas have publicly stated they applied for funding. Ucore and Texas Mineral Resources have provided details of their submissions.

      January 6, 2020 - 5:57 PM

      • Tracy Weslosky

        I just received an official comment from Lynas on the NDAA 2020. See added to site, and below. Note that Arafura has also commented and I think they should be on your radar. Can’t comment on Ucore – will send them another note this morning, requesting a comment. They do have a consultant, Jeff Green who has already commented: so I imagine they would be lining up behind him. We all have a great deal of respect for DC based Green who has been an active consultant in this space for many years. In fact, he introduced me to Lynas’ previous management 8 years ago. Thank you for visiting.

        January 7, 2020 - 7:18 AM

  • joe o

    Would it be a positive that UCORE has 145 million potentially from AIDEA for a bond issuance. Add that in with NDAA funding and you automatically got yourself a nice chunk of change. I am not aware of TMRC or anyone else having that in their back pocket. thoughts?

    January 6, 2020 - 4:07 PM

  • Joe O

    To be fair, Mr Lifton has said alot of things. he loved great western back in the day. Norra Carr was supposed to be the bomb but he failed to account for enviromental concerns.He thought MRT was a “game changer” but than retracted it saying he never really saw the pilot plant produce it, he took ucore words for it. Its apparent he had a falling out with ucore, probably over money. So I have no idea who may be right or who may be wrong. Jack was dead on correct re: Molycorpse though!!! And the funny thing the one part of great western he loved, I believe LCM, is now another company “Euticex” that now is part of Ucore consortium. And I believe he is still on TMRC board. So I can really take anyones word as gospel when their footprints are all over JMHO

    January 6, 2020 - 6:07 PM

  • Reejoey

    Curious no feedback from Lynas, with their Texas HREE refinery plans, or Ucore, with a strong consortium, have not replied to the you. This is potentially an inflection point for the North American rare earths industry of which these companies are/will be a part. Tracy, thank you for asking, “I have reached out to my favorite and most knowledgeable players in the industry with a request for them to provide practical feedback on what this means for our sector and how it will impact us in 2020.”

    January 6, 2020 - 6:08 PM

    • Tracy Weslosky

      Anthony Marchese of the TX-based Texas Mineral Resources Corp. (OTCQB: TMRC) rare earths deal comments above. Worth reading.

      January 7, 2020 - 7:20 AM

  • Joe O

    REEjoey
    Jeff Green represents Ucore, he has replied here.

    January 6, 2020 - 7:39 PM

  • Richard Brescianini

    Bringing together the NDAA, the Australian Government’s AUD4.4bn Defence Export Facility being made available to rare earth development projects, and joint U.S.-Australia critical minerals initiatives, it’s clear that not since the Government of Japan helped fund Lynas in 2011 to build their Malaysian process plant, have we seen Western governments, including those of the EU member states, focus, co-operate and now act on the issues that have allowed China to effectively take control of the rare earth market over the past 20 years. These efforts could result in further diversification (beyond Lynas) of NdPr and heavy rare earth supply, including by Arafura Resources, into ex-China NdPr metal-NdFeB magnet alloy/magnet manufacturing and the downstream clean energy supply chain.

    January 6, 2020 - 7:58 PM

    • Tracy Weslosky

      Thank you for your comments Richard on behalf of Arafura Resources. Some readers may not know that when I used to own a rare earth index several years ago, you always ranked in our Top 10. We would love an update on your rare earths initiatives!

      January 7, 2020 - 7:28 AM

  • Steve Mackowski

    It is widely accepted that the Chinese started their rare earths journey over 20 years ago using the best available Western technology. Those of us who have witnessed the Chinese total domination of the rare earths value add chain know that in that 20 years the tens of thousands of Chinese engineers have taken rare earths end products to previously undreamt of quality, application and therefore value. I would like to see a discussion not only on a non Chinese supply chain, but this 20 year ( 2 or 3 generations) of technology development that can be firstly obtained, and further more incorporated into that non Chinese supply chain.

    January 7, 2020 - 5:13 AM

    • Tracy Weslosky

      — anything you write, we will publish Steve as you know this space better than most of the so-called experts in the world. As always, its a pleasure to hear from you. Will email you later today.

      January 7, 2020 - 7:30 AM

    • Jack Lifton

      Steve,

      You are dead-on correct about the Chinese contributions to rare earth’s enabled products development. I always emphasize that the Chinese took an industry over in its infancy and brought it to adulthood. Restarting a domestic rare earth total supply chain will take a lot more than just money if it is to be competitive as state-of-the-art with the Chinese. This is the elephant in the room.

      January 7, 2020 - 10:11 AM

  • 738 Billion Defense Bill plus US and Canadian Critical Materials Memorandum Equals Pivotal Year for Rare Earths – InvestorIntel – ThePlanet1st

    […] Materials Engineering | January 6, 2020 | No Comments […]

    January 7, 2020 - 5:57 AM

  • Tim Ainsworth

    Have to wonder if the Dragon will lie comatose as US loudly & Germany quietly seek to usurp the RE leverage they’ve built over three decades, particularly as the current 5YP concludes.

    January 7, 2020 - 5:59 AM

  • Lynas Corporation

    Lynas welcomes the U.S. Defense Department’s plan to encourage the development of a rare earth supply chain in the United States, or with trusted allies. As the world’s second largest Rare Earths producer, Lynas is well positioned to help the establishment of a sustainable and resilient rare earth supply chain from mine to magnet and to energy efficient electric motors.

    January 7, 2020 - 7:22 AM

  • Christopher

    Joe —
    Re; Ucore
    Dec. 23rd, 2019 excerpts:

    “We believe that the combination of our experience and breadth of knowledge presents a winning opportunity,” said Lawrence Ryczek, Materion’s vice president of aerospace and defense.

    “We were looking for something that would put us directly in the same league as Lynas with this value proposition, and we’ve done that,” said Jim McKenzie

    “We have a track record of taking a concept on paper, meeting the requirements of the (U.S.) military and taking the project to fruition,” said Materion’s Ryczek. There’s no reason why we can’t help the (U.S.) rare earths supply chain be successful as well.”

    “Materion is pleased to team with Ucore to bid on this strategic project for the United States,” said Materion President of Performance Alloys and Composites, Clive Grannum. “This initiative complements Materion’s existing relationships across the U.S. Government for critical materials supply, most notably our beryllium mining, separation facility and metal processing operations in Utah and Ohio.

    ” Pursuant to a successful bid under the IBAS program, Ucore and Materion have agreed to jointly conduct a strategic assessment of the domestic HREE market and an engineering evaluation of related separation capabilities within the United States. Such an evaluation will consider the viability of multiple U.S. and/or U.S. allied rare earth element (“REE”) feedstock sources. Ucore, through its U.S. subsidiary, Landmark Alaska L.P., will be the project manager of the initiative, with Materion providing metallurgical processing, supply chain design, and advisory functions”.

    Below is from Materions j/v partner, Euticex;

    Eutectix manufactures superalloys, master alloys, bulk metallic glass, NdFeB , SmCo and other magnetic materials, hydrogen storage alloys, rare earth metal alloys and rare earth metals.

    Its large scale capabilities include, inert atmosphere grinding of metal powders, vacuum induction melting to produce high purity alloys, vacuum annealing, hydriding, strip casting, melt spinning and lab scale atomizing for additive materials.

    Eutectix also processes custom battery electrodes.
    Eutectix is the only domestic facility capable of industrial scale conversion of rare earth fluorides and oxides to rare earth metals.

    These excerpts speak alot of potential.

    Gltu!!

    January 7, 2020 - 10:37 AM

  • Joe O

    What would be a reasonable timeline for funds to start flowing to various projects, companies, consortiums etc?

    January 7, 2020 - 5:20 PM

  • Christopher

    Joe
    Iran might have just sped up the answer.

    January 7, 2020 - 7:28 PM

  • Golden Hat

    I have to apology first before my straight forward comment. What I feel and read here is full of political style discussion with positive wishes. None one touched the real core issues, such as the military use market scale, local government environmental request issues, products price guarantee from the US government, then the last, where and how to bring the know-how and man power with the know-how to build the separation plant and magnet manufacture plant, plus there is no heavy RE enrich resource in north America soil.
    Let me guess, this kind discussion will continue for another 20 years before a real full production line will be build. And then this production line will be thrown into dust. If I am a investor, I would not give this plan a glance since the largest market, electrical car, will not buy the magnet from our domestic product. Plus the old oil interest group who is one of the most powerful political group in the congress will definitely set political barriers for the new energy technologies. It is just because that the new energy technologies will damage their income.
    So stop day dreaming, you can just get some funding from the government. It is just worth for you guys to put some energy into your fingers and transfer on to the key board. That is it.

    January 8, 2020 - 1:38 AM

  • Tracy Weslosky

    Attend our Technology Metals Summit on May 14th – and we will make you a believer! There are numerous companies on a wide range of spectrums in the various 6-stages of the rare earths supply chain that are going to make this vision of sustainability, and a real supply chain out of China — a reality. https://investorintel.com/sectors/technology-metals/technology-metals-intel/investorintel-to-host-the-8th-annual-technology-metals-summit-on-the-na-critical-materials-supply-chain/

    January 8, 2020 - 8:45 AM

  • Joe O

    army is going to fund rare earth projects for weapons
    Ucore, TMRC and Lynas have done proposals How is that not funding again?

    January 8, 2020 - 2:16 PM

  • DONALD M LAY

    The US Dept of Defense has clearly ramped up REE initiatives over the last year and it’s welcomed by the current and emerging REE industry. The strategic implications for the DoD are easy to understand as China is emerging as both an economic and military rival. However the DoD also funds programs that provide benefits for key industrial sectors as well. In the case of REEs, numerous industries, such as automakers moving to hybrid and EVs models, can potentially draw on alternative value chains. That’s just sound industrial policy!

    Medallion Resources has been focused on the development of rapid “go to production” rare earth business model and proprietary extraction process using by-product monazite feedstocks. These are available throughout the Americas, Australia and Southern Africa. We recently announced the start of US site selection process for an initial REE extraction plant with capital requirements that are a fraction of traditional REE mining and processing operations.

    January 9, 2020 - 7:41 PM

    • Christopher

      Mr. Lay,

      I have just a couple questions if you would sir.
      Information is taken from current website:

      1) Graph is showing 50-60% REE content.

      What is the extraction / purity percentages ?

      2.) Same graph shows 95% is LREE. Revenue is 85% from NdPr.

      What is the remaining 15% revenue stream ?

      3) Flow sheet shows 5-10% radioactive / disposal.

      Is that the avg across all feed stock sources, or only for the florida source?

      Is this 5-10x the % of Lynas?

      4) HREE’s shows 5% @ 0.60 Dy, 0.2% Tb.

      Is this an avg of all feed sources?

      Will Medallion be able to provide all 5 DENTY metals at any point per the following Report:

      DOD, DLA, & DOC 2016, Industrial Base Assessment of the U.S. REE Supply Chain Focusing on Manufacturers and Distributors of Products Containing REE Components In Defense and Aerospace Applications.

      5) Insider ownership is showing 13%.

      Does this represent 2020 ownership?

      Thanks again Sir and Gltu!

      January 9, 2020 - 10:24 PM

      • Tim Ainsworth

        Chris, the real questions for Medallion’s alternate strategy are what are the capital density & CoP numbers per kg NdPr?

        Imagine the current work will firm up the first, and they’ve probably already got a decent handle on the later.

        Good reason to believe they will be very competitive, particularly CapEx, so doubt they’ll keep you waiting long once they have the hard data.

        January 10, 2020 - 8:15 AM

      • DONALD M LAY

        Christofer:
        Thanks very much for the questions. Here’s some quick answers to your questions.
        1. Graph showing REE content — Upgraded monazite sand normally is about 85-90% monazite (10-15% gangue mineral). This works out to 55-60% or so REO equivalent. Depending on the particular monazite feedstock source, whether one is performing cerium depletion step, etc. recoveries vary but 90% is a good estimate. It’s also highly variable between the different elements. We’ve provided some of this information in different news releases.
        2. Same graph – revenue – It is the magnet metals (Nd, Pr, Dy, Tb) that deliver the bulk of the revenue for any monazite by-product extraction plant, which shouldn’t be suprising. The rest are split by the other elements and we have not provided exact estimates as pricing and recoveries will vary. Also we look to produce a phosphate by-product as well which we have disclosed publicly.
        3. Radioactive waste – 5-10% is a rough estimate as it varies by source. In fact the variance is even a bit wonder that that. Monazite from the US tends to be at the lower end of this. Lynas has low levels of thorium in its deposit, considering it is monazite albeit an unusual monazite. Lynas uses a process in Malaysia that sees the thorium be put out in their gypsum tailings. Our process takes out the Th+U in a concentrate that we will deal with separately as a waste stream. There is value in the U component as well and we are looking to take advantage of that.
        4. HREEs and other questions – Except for results of metallurgical testwork we have generally provided a proforma beach-sand monazite – this was calculated as an average of beach sand monazite sources that the USGS compiled in a study into this. It’s a useful number to use. We are not really focused on the DENTY REEs. The permanent REE magnet market is leading the REE market and that is our focus as monazite sources we look at have good quantities of the all-important NdPr component.
        5. Insider Ownership – It has not changed recently and should be a good estimate.

        January 12, 2020 - 5:50 PM

    • Tracy Weslosky

      Thank you for your comment Don, its nice to hear from you. We will update the column to include your comments as we do appreciate that Medallion Resources has a following that reads InvestorIntel. Happy Friday.

      January 10, 2020 - 5:40 AM

  • Christopher

    Tim

    Umm, no, my questions are what i asked.

    January 10, 2020 - 8:35 AM

  • Christopher

    Mr. Lay

    Thank you very much for taking time out of your weekend to answer.

    It is very much appreciated to hear directly from Senior Mgt..

    If possible, and when you have time, i did want to ask one other on feed stock source:

    My understanding is florida will be the primary source of feed.

    How many years of initial production will florida provide before needing to source from overseas?

    Including possibly needing to blend grades, etc..

    Days before your comments, i had just told some they were overlooking MDL.

    So thank you again.

    January 13, 2020 - 10:19 AM

  • DON LAY

    Christofer:
    Happy to discuss in more detail and not clog up InvestorIntel. Please send an email to me at don.lay@medallionresources.com

    Thanks, Don

    January 15, 2020 - 1:17 PM

    • Tracy Weslosky

      Don – why don’t you just do an interview with Jack Lifton?

      January 15, 2020 - 3:46 PM

  • Joe O

    Jack
    besides ucore consortium, lynas and TMRC, who else do you believe put in proposal for army funds? You expect all 3 of the above to get some kind of funding? Materion and Euticex sure sound formidable!

    January 15, 2020 - 3:15 PM

    • Jack Lifton

      I cannot disclose others that I know about due to confidentiality agreements, but suffice it to say that there were several more applicants. I suspect there will be multiple awards, because I think that if this were to be a single source contract it would have been so designated.

      January 15, 2020 - 4:35 PM

  • Joe O

    Jack,
    If you were in vegas and were running the line, what odds would u give to lynas, ucore and tmrc as far as getting funding. my guess is ucore 3-1, tmrc and lynas 7-1. Just think Lisa M, Popps, J Green, Materion and maybe in the next few months MRT well they bring alot of potential. appreciate your input!!

    January 15, 2020 - 5:06 PM

  • Justin

    Jack, may I have an email contact for you? Off the subject of Rare Earths, I would like to inquire about Lithium. Thank you!

    January 22, 2020 - 7:51 AM

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