11 Major Rare Earth Projects Outside Of China

Morgan Stanley
Rare Earth Demand Growth by Application

Rare earths are a group of 16 elements used in the hi-tech and defense sectors. Demand for rare earths is expected to rise to 170 kilotons in 2015, from 125 kilotons in 2010. China has about 50 percent of known global rare earth oxide (REO) reserves and  accounts for about 97 percent of rare earths output. And Beijing has been imposing export restrictions to conserve rare earths for its own future use.

In fact, yesterday we reported that the EU, U.S. and Japan asked the World Trade Organizations to  settle a dispute with China over its export restrictions on raw materials, including rare earths.

While China continues to dominate the rare earths market, new projects are popping up globally. We drew on a Morgan Stanley's Global Metals Playbook report to provide a quick tour of some of major rare earths projects outside of China.

Note: Grade of REO represents the quality of the rare earth oxide reserves

Mountain Pass, U.S.

Mountain Pass, USA

Company:
Molycorp
Capital expenditure:
$895 million

Production:
40.0 kilotons per annum

Grade of REO:
8.2%
Production start:
2012

Mt. Weld, Australia

Mount Weld, Australia

Company:
Lynas Corporation Ltd.
Capital expenditure:
$882 million

Production:
22.0 kilotons per annum

Grade of REO:
8.1%
Production start:
2012

Steenkampskraal, South Africa

Steenkampskraal, South Africa

Company:
Great Western Minerals Group Ltd.
Capital expenditure:
$60 million

Production:
5.0 kilotons per annum

Grade of REO:
11.8%
Production start:
2013

Nolans Bore, Australia

Nolans Bore, Australia

Company:
Arafura Resources Ltd.
Capital expenditure:
$1 billion

Production:
20.0 kilotons per annum

Grade of REO:
2.8%
Production start:
2014

Dubbo Zirconia, Australia

Dubbo, Australia

Company:
Alkane Resources Ltd.
Capital expenditure:
$584 million

Production:
4.2 kilotons per annum

Grade of REO:
0.9%
Production start:
2014

Dong Pao, Vietnam

Company:
Toyota Tsusho Corp. and Sojitz Corp. Capital expenditure:
N/A

Production:
7.0 kilotons per annum

Grade of REO:
N/A
Production start:
2014

Hoidas Lake, Canada

Hoidas Lake, Canada

Company:
Great Western Minerals Group Ltd.
Capital expenditure:
N/A

Production:
-

Grade of REO:
2.0%
Production start:
2015

Bear Lodge, U.S.

Bear Lodge, USA

Company:
Rare Element Resources Ltd
Capital expenditure:
$175 million

Production:
10.3 kilotons per annum

Grade of REO:
3.2%
Production start:
2016

Zandkopsdrift, South Africa

Zandkopsdrift, South Africa

Company:
Frontier Rare Earths Ltd.
Capital expenditure:
Approx. $500 million

Production:
20.0 kilotons per annum

Grade of REO:
2.2%
Production start:
2015

Nechalacho, Canada

Company:
Avalon Rare Metals Inc.
Capital expenditure:
$884 million

Production:
10.0 kiloton per annum

Grade of REO:
1.7%
Production start:
2016

Kvanefjeld, Greenland

Kvanefjeld, Greenland

Company:
Greenland Minerals & Energy Ltd. Capital expenditure:
$2.3 billion

Production:
43.7 kiloton per annum

Grade of REO:
1.0%
Production start:
2016