US Energy Fuels Inc acquiring Australian firm to boost mine to market rare-earth value chain
Energy Fuels says this will create the largest, fully integrated, rare-earth element 'mine-to-metal and alloy' producer outside of China.
The US producer of uranium, rare-earth elements (REE) and critical materials is acquiring 100% of the Australian REE metal and alloy producer.
The deal is to close a critical strategic gap in global supply chains for magnet applications, including automotive, robotic, energy and defence technologies.
Upon completion, the transaction will combine Australian Strategic Materials' (ASM) operating Korean Metals Plant (KMP) and its planned American Metals Plant with Energy Fuels' existing REE oxide production at its White Mesa Mill in Utah.
The White Mesa Mill is reportedly the only US facility capable of separating monazite concentrates into both light and heavy REE oxides, whicg are planned for use in ASM's metallisation and alloying facilities in South Korea and America.
Furthermore, the KMP is said to be one of the few facilities outside of China currently producing REE metals and alloys, including neodymium-praseodymium, dysprosium, terbium metals, and neodymium-iron-boron and dysprosium-iron alloys.
By integrating low-cost and scaleable REE separation with downstream REE metal and alloy conversion, Energy Fuels expects to enhance vertical integration, margin capture and market share across the REE value chain, so it can sell REE products to end-users at multiple stages.
ASM's Dubbo REE Project in NSW, Australia, will add to Energy Fuels' REE development projects, which currently includes the Donald project in Victoria, Australia; the Vara Mada project in Madagascar; and the Bahia project in Brazil. These are all intended to supply feed materials for the planned expansion of the White Mesa Mill to 6,000t p.a. of neodymium-praseodymium, 240tpa of dysprosium and 66tpa of terbium oxides.
