Vital Metals, Canada’s only rare earths producer, declared bankruptcy at its Canadian subsidiary following a review of its semi-finished processing plant in Saskatoon, which worth $55 million. The company suspended construction of the Saskatoon plant in April, citing rising plant costs and falling rare earth prices that reduced the viability of refining ore at the Nechalacho North T pit.
The company said in December of last year that it would slow down factory construction after costs doubled. Vital Metals said delaying construction of the plant's hydrometallurgical leaching, purification and rare earth precipitation loops will save it nearly $16 million. But the company said it will still complete the calcination process and produce rare earth oxide products before the Q3 of this year.
