According to the MiningNews.net website, after more than a decade, Northern Minerals (Northern Minerals) has finally released the final feasibility study report for its Browns Range (Browns Range) heavy rare earth development project in Western Australia, which shows that the project is technically and economically feasible.
The Browns Range rare earth mine is targeting an annual production of 17,500 mt of xenotime concentrate, with a total rare earth oxide (TREO) grade of 25%, equivalent to a TREO content of 4,350 mt. The all-in cost is $44.7/kg.
Compared to other rare earth deposits globally, this project has an exceptionally high content of dysprosium and terbium, while the light rare earth content is relatively low.
Dysprosium and terbium are particularly important for producing high-performance permanent magnets, but heavy rare earth prices are very high.
Northern Minerals stated that the Wolverine (Wolverine) deposit in this project is one of the highest dysprosium and terbium content rare earth element deposits outside of China. Once operational as early as 2028, its dysprosium and terbium production could meet 8% of global demand.
The payback period is as short as six years.
Northern Minerals believes that the Browns Range project can, to some extent, influence international market prices.
Diverging Scenarios
Amid the current surge in gold prices, these figures may seem relatively small, but the development potential for rare earths is entirely different. Dysprosium and terbium are difficult to substitute, and there are few projects as advanced as Browns Range.
Northern Minerals stated that rare earths have been regarded by the Australian government as a national strategic asset.
The company has signed a long-term supply agreement with Iluka Resources (Iluka Resources), whose Eneabba (Eneabba) rare earth smelter in Western Australia can process 30,500 mt of rare earth oxides.
In January, the updated ore resource for the Browns Range rare earth mine was 7.3 million mt, with a TREO grade of 0.96%.
The first estimated ore reserve for the Browns Range rare earth mine is 5.18 million mt, with a TREO grade of 0.88%, equivalent to a TREO content of 45,800 mt, of which dysprosium and terbium account for 70% of the value.
The above reserves can support 11 years of open-pit and underground mining.
Prior to 2022, the company had completed the construction of a pilot plant with an annual production capacity of 1,000 mt of mixed rare earth carbonate, reducing risks.
Northern Minerals Manager Shane Hartwig (Shane Hartwig) stated that rare earth prices remain opaque. Although prices are currently falling, they will not decline forever, as Western countries have already regarded rare earths as strategic minerals, especially in the event of a supply deficit.
The next challenge is financing.
Judging from Australia's funding for the construction of the Whyalla rare earth smelter, the recent US floor price setting for Mountain Pass Pr-Nd products, to the EU's high emphasis on heavy rare earth supply, financing should not be an issue.
Hartwig stated that the next consideration is the financing structure.
Upside Potential
Despite 10 years of exploration, the deep part of Wolverine remains unconstrained, and there are multiple deposits around the mine, several of which could supply ore as raw material within two and a half years after Wolverine commences production.
At the border between Western Australia and the Northern Territory, Northern Minerals also holds 5,600 square kilometers of unexplored mining tenements.
