According to a report by Mining.com, Canada Rare Earth (CRE) has signed a memorandum of understanding with a Lao enterprise to purchase its fully licensed rare earth smelter. The facility will be used to process concentrates and produce commercially saleable rare earth oxides, including both light and heavy rare earth elements.
The smelter, built 12 years ago, has an annual production capacity of 3,000 mt of rare earth oxides. However, due to historical policy changes affecting rare earth processing, the facility has not been operational since its completion.
CRE stated that policies have now reversed, with the Lao government supporting the startup company and the smelter's operations. The government encourages domestic processing of locally produced rare earth concentrates to enhance the value of the abundant ion-adsorption clay-type rare earth ore in northern Laos.
CRE noted that new sources of rare earth concentrates have significantly improved the operational outlook for the smelter, reducing the risk of supply disruptions. The facility requires only minor refurbishments to become operational and is expected to be ready by Q4 2025.
The smelter has already received an updated environmental impact assessment report, and all necessary business licenses and permits for operations have been obtained.
CRE disclosed that it is in discussions with multiple interested parties regarding project-level offtake agreements and potential investments. It anticipates securing credit support to operate the smelter at favorable costs, ensuring the annual supply of key rare earth oxides such as Pr-Nd, dysprosium, and terbium.
"Selecting the right offtake partners, project financiers, and lenders is a critical decision. Alignment of objectives is essential to achieve both commercial and strategic success in this partnership," said Peter Shearing, CEO of CRE, in a press release.
"We are approaching this matter cautiously and selectively to ensure the smelter delivers maximum value to the rare earth market."
Last year, the company, through its subsidiary Simba Essential Minerals, established a rare earth facility in the DRC.
