“Recently, Ucore was mentioned on CNBC as being an attractive takeover candidate for Molycorp Minerals (MCP:NYSE), Lynas Corp. (LYC:ASX) or Great Western Minerals Group Ltd. (GWG:TSX.V; GWMGF:OTCQX).”
Yes, Lynas has the financial security to be able to acquire other jr. rare earth miners in the future,,,but that is not their focus for the near term. The last thing Lynas would want to do is takeover a jr. miner with material under a large mountain on an island million of miles away. That could be someone else’s headache.
Lynas has only to look in it’s backyard as Duncan Deposit is adjacent to Mt. Weld. or further down the road to it’s Malawi site in Southern Africa.
If Lynas needs to diversify material any further, another viable source would be to buy HREE’s for processing from a neighbor Australian miner or two that have projects coming on board much sooner than Ucore.
If you listen to the recent conference call, NC answers a question about processing material from other miners at LAMP. NC stated that although the LAMP was designed for the ore body at Mt. Weld,,,ANYTHING CAN BE FED INTO THE PLANT!
Lynas could very well be processing ore from many jr’s.,,, as they will be finding it very difficult to build out plants to refine their materials. Unfortunately in this business, many miners will not have the funds to do so and many miners may have product they need to sell in a timely fashion.
Lynas is the #2 shareholder in Northern minerals (NOURF)owning 8.0% of the stock. LOTS of HREE’s there! Will Lynas be processing their HREE’s at LAMP in the future? ???
It isn't just the HREE ore that counts, GEOGRAPHY is also a very key consideration when evalutaing ree deposits. For example, a deposit in one of the "Stans" of Central Asia, about the most corrupt and unstable country in the world, isn't "worth" nearly as much as a deposit in Oz. And when it comes to an American DOMESTIC ree program, HREE in the US is all that will be considered for inclusion/fast-tracking/tax incentives/loans--Ucore's HREE (dysprosium) is in coastal SE Alaska.
Most non-Chinese rare earth projects doomed: consultant
LONDON | Tue Nov 1, 2011 10:25am EDT
LONDON (Reuters) - The vast majority of non-Chinese rare earth metal (REM) ventures will fail due to a lack of expertise and high ore processing costs, says Jack Lifton, founder of the industry consultancy Technology Metals Research.
Firms were quick to launch new mines and restart mothballed operations as soon as China, which controls about 95 percent of the REM market, started slashing its export quota in 2009.
Of the 244 companies hoping to produce the rare earth metals essential to a wide range of high-tech industries, less than 4 percent will prove profitable, the strategic metals consultant
told Reuters in an interview on Friday.
"The choke point for all the companies is the question of what they can do with the concentrated REM ore once it's above ground. You can extract the rare earths together, but then you have to separate them...the world's REM separation capacity is 99 percent Chinese and they have unused capacity," Lifton said.
"The Chinese overwhelmingly control this and that is the key to the rare earth industry. Without separation capacity, all you have is a loss-making ore concentrate company."
Prized for their magnetism, luminescence and strength, rare earths are used by manufacturers of everything from smartphones to hybrid cars and wind turbines, but the elements occur together in the earth in different proportions and the separation process is complex and expensive.
"That's why you don't want the biggest deposits, you don't want to have to process hundreds of tonnes at horrendous cost. You're looking for the highest grade heavy rare earths and the least cost to recover them. It's a question of economics," Lifton said.
Heavy rare earths such as dysprosium and terbium, crucial for the high-power magnets needed by the auto, defense and clean energy industries, are scarcer than cerium and other light rare earths, making them much more valuable.
China currently controls 100 percent of the market for three heavy REM: dysprosium, terbium and yttrium.
I have been unclear as to the flexibility of the LAMP in processing concentrated ores. Is it your understanding that the LAMP can process a variety of Hrees? As the only concnetrated ore processing plant in SE Asia outside of China, Lynas is in an enviable position to make offers to junior miners to process their ores. The time and expense to build a processing plant is beyond the means of most, if not all, junior miners in Australia, I think. Perhaps I am wrong and need more clarification on this point. Thanks for your insights!
It is bad to say never but most HREE rich ore is Monazite which is embedded in veins. The refining process has major differences from what MCP and Lynas are setting up. This is one of the reasons many people (including Me)are having a hard time with MCP claims for ther mountain pass facility. I realy dobt this ore could be processed in the lamp without extensive motification Here is a Process flow diagram for GWM that was on GWM board. http://dl.dropbox.com/u/21644826/BENEFICATION%20-%20EXTRACTION%20DIVISIONS.jpg
Incedently Lynas does not have cash or need headaches.
GWM does not have the cash and has the HREEs
MCP turned down an opportunity to buy Broken 3 years ago at a much lower price because they did not like the ore grade. They also did not have allot of spare cash then so who knows.
Who is Yue Conglin, the owner of over 19% of Northern? I cna understand why Lynas would be interested in this mining operation! It would be a potential source of more Hrees to supplement those from the Duncan deposit.