Medallion Resources eyes North America for rare earths extraction plant (updated)

Gamma Resources

09/07/2019 18:54

(Adds details from CEO interview)
    July 9 (Reuters) - Canada's Medallion Resources Ltd  MDL.V 
said on Tuesday it was looking at sites across North America to
develop an extraction plant for rare earths, as the ongoing
U.S.-China trade war has turned the spotlight on the strategic
metals.
    Rare earths are essential components in rechargeable
batteries that power electric and hybrid cars as well as fighter
jets, tanks and other military equipment. There are currently no
known substitutes.
    Vancouver-based Medallion said it is seeking proposals from
contractors to help build a plant to process the metals from the
reddish-brown phosphate mineral monazite, a sand containing high
concentrations of rare earths.
    The company has relationships with monazite suppliers in the
U.S. Southeast, but likely would build its plant in the center
of North America, eyeing the region between Texas and
Saskatchewan, Chief Executive Officer Don Lay said in a an
interview.
    China controls nearly all of the globe's processing capacity
for rare earths, a strategic edge it is using to its advantage
in the trade dispute with the United States as it accounts for
80% of U.S. imports of the minerals, according to U.S.
Geological Survey data.
    "We see this as a key step to help build that value chain
across North America," Lay said.
    Large monazite producers in the United States include
Chemours Co  CC.N , a titanium dioxide maker spun off from
DuPont  DD.N  in 2015, and privately held Southern Ionics
Minerals.
    Medallion is effectively looking for partners to help it
build a facility that would turn monazite into rare earths for
use in North America. Other rare earth projects under
development in the region derive the minerals from hard rock or
other sources.
    The company declined to provide financial figures for the
project or lay out a timeline.
    Prices of neodymium rare earths - used in magnets and
speakers - have surged 26.5% since May 20, while those of
dysprosium and gadolinium oxide have gained around 10%. 
    California's privately held Mountain Pass mine is the only
operating U.S. rare earths facility, while Australia's Lynas
Corp Ltd  LYC.AX  in May agreed to build a rare earth processing
facility in the country with Texas-based Blue Line Corp.
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 (Reporting by Ernest Scheyder in Houston and Arathy S Nair in
Bengaluru; editing by Sriraj Kalluvila and G Crosse)
 ((ernest.scheyder@thomsonreuters.com; +1-713-210-8512; Reuters
Messaging: ernest.scheyder.thomsonreuters.com@reuters.net;
Twitter @ErnestScheyder))