LME Asia Week: LME to launch cobalt, lithium cash-settled contracts

Recently, the U.S. House of Representatives passed the H.R.7037 bill, known as the Developing Overseas Mineral Investments and New Allied Networks for Critical Energies Act (DOMINANCE ACT, referred to as the "Domination Act"). The bill was jointly introduced by California Representatives Ami Bera and Young Kim, aiming to strengthen U.S. energy security and build a more resilient supply chain with trusted allies and partners.

Aldoro Resources reported that hydrometallurgical testing of the Kameelburg niobium and rare earth deposit in Namibia yielded encouraging results, with a simple process but relatively high recoveries of rare earths and strontium, while drilling also intersected high-grade niobium ore. Tests commissioned by the company and conducted by ALS Metallurgy Services in Western Australia showed that Kameelburg can be treated using a direct acid leaching method, eliminating the need for flotation or magnetic separation processes used at MP Materials' Mountain Pass operation in the US and Lynas Rare Earth's Mt Weld rare earth mine in Western Australia. The hydrochloric acid leaching process can be carried out at ambient temperature and pressure, and if scaled up, is expected to significantly reduce development costs.

According to overseas media reports, London-listed Pensana announced that construction of the Longonjo rare earth mine in Angola is progressing as planned, with a total investment of $250 million, targeting first commissioning and production of mixed rare earth carbonate (MREC) in 2027. The mine has a life of 20 years, with initial annual production of 20,000 mt of mixed rare earth carbonate, expanding to 40,000 mt in the fourth year. $36 million has been invested in the development of the mine and beneficiation plant, and main construction works are 22% complete. Manufacturing of long-lead equipment is progressing well, with committed procurement capital expenditure of approximately $135 million. The company is optimizing the heavy rare earth recovery circuit, targeting over 122 mt per year of dysprosium and terbium, positioning Longonjo as one of the largest heavy rare earth producers in the Western world. The modular separation facility can be expanded with mine expansion and includes a metallization circuit. Pensana has signed a non-binding memorandum of understanding with Toyota Tsusho for the offtake of up to 20,000 mt per year of mixed rare earth carbonate from Longonjo for a five-year term. The company has established a multi-partner offtake framework covering Japan's Toyota Tsusho, US-based ReElement Technologies, and US/Germany-based VAC/eVAC Magnetics. The project has received a $165 million strategic investment from Cascade Natural Resources and debt financing from ABSA, with political and commercial risk insurance provided by the US Export-Import Bank.