ASX-listed heavy rare earths hopeful, Northern Minerals, has a couple of reasons to hit the festive season with an element of good cheer following a year of significantly improved price action in two key payable elements that occur in the mineral resource at its Browns Range heavy rare earths project in WA.
The Perth-based company says dysprosium and terbium are the dominant heavy rare earths elements produced at its $75 million Browns Range pilot plant operation in the East Kimberley region.
Prices for dysprosium and terbium have climbed 22 per cent and an eye-catching 93 per cent, respectively, since the start of the calendar year, according to Asian Metal.
The dysprosium price now stands at US$297 per kilogram, up from US$244/kg kilogram, and the terbium price now commands $958/kg, its highest point in the past eight years, up from US$497/kg.
Beijing-headquartered Asian Metal’s separated oxide prices are used in a formula for the calculation of received revenue pricing for Browns Range dysprosium and terbium production.
Northern Minerals Chief Executive Officer, Mark Tory said: “The accelerated price increases in 2020 are likely linked to increasing trade tensions between the US and China, which remains the dominant producer globally of heavy rare earths.
“In addition to global trade volatility, the disruption caused by COVID-19 will potentially act as a catalyst around the world for countries to focus on investment in more sustainable infrastructure projects, including renewable energy capacity, as part of their economic recovery initiatives.”
“We are also seeing an acceleration of government policy settings around the world to further incentivise the purchase of electric and hybrid drive-train vehicles.”
Demand for heavy rare earth elements, in particular dysprosium and terbium, continues to be driven by strong growth in the high-performance dysprosium neodymium-iron-boron permanent magnet sector.
Applications for the permanent magnets include in the renewable energy, transport electrification, defence and high-tech industries.
Northern Minerals, one of a few producers of dysprosium outside of China, pointed out the US imported approximately 80 per cent of its rare earth elements directly from China, with portions of the remainder indirectly sourced from China through other countries.
A US presidential executive order in September called for future policy options to reduce the vulnerability of the US to the disruption of critical mineral supply chains through co-operation and co-ordination with partners and international allies. Australia’s Government may find itself in the same boat if strained relations with China continue to deteriorate.
Against that background, in the event the $159 million market-capped company’s three-year pilot-level assessment as well as exploration work at Browns Range can lead to a larger-scale development, then Northern Minerals may be in the van to tap into the shift towards locking up critical mineral supplies.
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By Matt Birney
