African Mining March - April 2019 | Page 38

Business Mkango Resources is exploring the REE deposit in Malawi. REEs are associated with thorium, which is seen as a more effective and safer alternative to uranium. Thorium fuel can use either uranium or plutonium as the fissile driver material. It is also environmentally safer and extremely difficult to use to make a nuclear weapon. The thorium fuel cycle produces no plutonium and hardly any minor actinides. Thorium isotopes are also used in the treatment of cancer. Reporting Most Western hemisphere and African deposits are defined in terms of resources and reserves, based on mineral reporting codes, determined either by the country in which the deposited is located, or the stock exchange where the company is listed. These are usually benchmarked against deposits in the US. This is due to the fact that the Mountain Pass carbonatite bastnaesite dominated the world supply up to the late 1990s. The mine was temporarily closed due to environmental and safety concerns and was only periodically operated until 2015. The report should be compiled by a competent person. Where is the real value? The actual REE ratios should be carefully considered when looking at the value of a REE deposit. A developer may indicate a high ratio of the generally more valuable HREO to LREO compared with LREO-enriched deposits. These apparently high ratios may, however, be largely due to yttrium. Yttrium may dominate a particular mix of HREO, although its value generally ranks below that of Pr, Nd, Eu, Tb, Dy, Tm, Yb, and Lu. Further consideration is that the mining, as well as separating REO from a higher grade LREO deposit, may be a more cost-effective resource of HREO than a low-grade HREO-enriched deposit. Given that current and projected consumptions of rare earths are between 120 000 and 200 000 tons, it is clear that only a few operations will be viable without flooding the world’s market and impacting price levels. Other factors that have been putting a damper on the development of African REE projects are a lack of funding, the remoteness of the deposit, and lack of infrastructure to move the ore from mine to port. 36 AFRICAN MINING MARCH - APRIL 2019 Finally, a significant number of the projects have been hampered by intervention by the governments of the host country and protracted legal actions and sited environmental issues. Processing Due to the extremely complex nature of REE deposits, each deposit will have unique processing challenges, mostly related to the mineralogy. Monazite encompasses Ce, La, Nd, Sm, and Gd-dominant varieties. Churchite (hydrated yttrium phosphate) encompasses Nd, Dy, and Er-rich varieties. The size and density of REE phases will provide guidance relevant to physical beneficiation and the understanding of the behaviour of possible radio-nuclides. The processing of REE is solvent extraction, again guided by the dominant mineral composition. This ranges from atmospheric leaching with mildly acidic conditions, to extremely aggressive conditions. Cognisance should also be taken of any potential by-products that can be produced, such as zircon, and how the processing will affect the quality of by-products. The processing component of REE is also the most cost-intensive part of the operation. The cost of processing REE is generally opaque and subject to strict confidentiality clauses. The different settings and mineralogy will also have an impact, but it can be estimated that the processing cost can be as much as the combined cost of mining, transport, and concentration. Rainbow Rare Earths The only REE producing mine in Africa at the time of writing is operated by Rainbow Rare Earths, a UK-based company. Martin Eales, CEO of Rainbow Rare Earths, says that the fast development of the mine, from the mining licence being granted in 2015 to delivering the first off-take material in the fourth quarter of 2017, is due to the fact that the deposit, on surface, is capable of free dig, with high grade, allowing them to mine a smaller volume of material. “The mine does not perform any beneficiation of the ore and sell a simple product that is not separated,” he says. This, according to Eales, resulted in a low capex requirement to develop www.africanmining.co.za