11 Major Rare Earth Projects Outside Of China

chartRare Earth Demand Growth by Application

Photo: Morgan Stanley

Rare earths are a group of 16 elements used in the hi-tech and defence sectors. Demand for rare earths is expected to rise to 170 kilotons in 2015, from 125 kilotons in 2010.China has about 50 per cent of known global rare earth oxide (REO) reserves and  accounts for about 97 per cent of rare earths output. And Beijing has been imposing export restrictions to conserve rare earths for its own future use.

In fact, yesterday we reported that the EU, U.S. and Japan asked the World Trade organisations to settle a dispute with China over its export restrictions on raw materials, including rare earths.

While China continues to dominate the rare earths market, new projects are popping up globally. We drew on a Morgan Stanley’s Global Metals Playbook report to provide a quick tour of some of major rare earths projects outside of China.

Note: Grade of REO represents the quality of the rare earth oxide reserves

Mountain Pass, U.S.

Company:
Molycorp

Capital expenditure:
$895 million

Production:
40.0 kilotons per annum

Grade of REO:
8.2%

Production start:
2012

Source: Morgan Stanley

Mt. Weld, Australia

Company:
Lynas Corporation Ltd.

Capital expenditure:
$882 million

Production:
22.0 kilotons per annum

Grade of REO:
8.1%

Production start:
2012

Source: Morgan Stanley

Steenkampskraal, South Africa

Company:
Great Western Minerals Group Ltd.

Capital expenditure:
$60 million

Production:
5.0 kilotons per annum

Grade of REO:
11.8%

Production start:
2013

Source: Morgan Stanley

Nolans Bore, Australia

Company:
Arafura Resources Ltd.

Capital expenditure:
$1 billion

Production:
20.0 kilotons per annum

Grade of REO:
2.8%

Production start:
2014

Source: Morgan Stanley

Dubbo Zirconia, Australia

Company:
Alkane Resources Ltd.

Capital expenditure:
$584 million

Production:
4.2 kilotons per annum

Grade of REO:
0.9%

Production start:
2014

Source: Morgan Stanley

Dong Pao, Vietnam

Company:
Toyota Tsusho Corp. and Sojitz Corp.

Capital expenditure:
N/A

Production:
7.0 kilotons per annum

Grade of REO:
N/A

Production start:
2014

Source: Morgan Stanley

Hoidas Lake, Canada

Company:
Great Western Minerals Group Ltd.

Capital expenditure:
N/A

Production:
-

Grade of REO:
2.0%

Production start:
2015

Source: Morgan Stanley

Bear Lodge, U.S.

Company:
Rare Element Resources Ltd

Capital expenditure:
$175 million

Production:
10.3 kilotons per annum

Grade of REO:
3.2%

Production start:
2016

Source: Morgan Stanley

Zandkopsdrift, South Africa

Company:
Frontier Rare Earths Ltd.

Capital expenditure:
Approx. $500 million

Production:
20.0 kilotons per annum

Grade of REO:
2.2%

Production start:
2015

Source: Morgan Stanley

Nechalacho, Canada

Company:
Avalon Rare Metals Inc.

Capital expenditure:
$884 million

Production:
10.0 kiloton per annum

Grade of REO:
1.7%

Production start:
2016

Source: Morgan Stanley / Avalon Rare Metals Inc.

*A previous version of this piece erroneously stated that the project was located in the U.S.

Kvanefjeld, Greenland

Company:
Greenland Minerals & Energy Ltd.

Capital expenditure:
$2.3 billion

Production:
43.7 kiloton per annum

Grade of REO:
1.0%

Production start:
2016

Source: Morgan Stanley

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