Australia's FYI Resources partners with Arafura to develop rare earths facility

Cadoux

09/05/2023 02:42

May 9 (Reuters) - Australia's FYI Resources Ltd  FYI.AX 
said on Tuesday it had signed a deal for the staged acquisition
of Northern Territory-based Minhub Operations rare earths
project.
    The company would venture into processing mineral sands to
produce key rare earths products used in lithium-ion batteries
for electric vehicles, and de-risk its core high purity alumina
project, it said in a statement.
    In a separate deal, Minhub Operations and Arafura Rare
Earths Ltd  ARU.AX  have agreed to develop the Minhub project.
Arafura would get the first right of offtake for neodymium (Nd)
and praseodymium (Pr) and other rare earth concentrate produced
from Minhub, according to the statement by FYI.
    Australia is building up a critical minerals processing
industry, as Western nations look to diversify away from
dominant producer China.
    Alongside Arafura and feedstock partners, FYI said the
acquisition would develop a production strategy for the critical
rare earths essential for decarbonisation.
    FYI is targeting a feasibility study for the Minhub project
in early in 2024, and aims to progress Minhub alongside
Arafura's NdPr-focused Nolans Project, it added.
    

 (Reporting by Savyata Mishra in Bengaluru; Editing by Rashmi
Aich)
 ((Savyata.Mishra@thomsonreuters.com;))