Australia’s Nuclear Science and Technology Organisation (ANSTO) is constructing a pilot facility designed specifically to process raw materials from clay-hosted deposits, a move intended to reduce China’s near-monopoly in this critical sector.
Global demand for rare earth elements (REEs) continues to rise, yet China still dominates both mining and, even more significantly, processing. Australia seeks to position itself as a strategic alternative and already hosts Lynas, a major producer that processes REEs domestically. Other companies, including Arafura and Iluka, are also pursuing expanded downstream capabilities. Until now, government support has focused mainly on grants and research initiatives. With the new Sydney facility, Australia aims to fill remaining gaps across the rare earth value chain.
According to a report by ABC on Friday, ANSTO has been commissioned to build a pilot plant that will process rare earths from ion-adsorption clay deposits. Unlike hard-rock deposits, these clays can be mined without blasting; rare earth elements are extracted through chemical leaching. Such deposits are notably rich in the highly sought-after heavy rare earths — including terbium and dysprosium — which are subject to stringent Chinese export controls. Currently, commercial mining of ion-adsorption clays occurs only in China and neighboring Myanmar, and all processing remains concentrated exclusively in China.
ANSTO has previously received government funding to develop the required technologies and processing methods. The pilot facility is expected to begin operations next year. ABC reports that Australia Rare Earths has already signed on as the first supplier. The company is developing the Koppamurra deposit in southeastern Australia and plans to apply for a mining license next year. The facility will also be open to additional companies. According to Adrian Manis, Senior Advisor in ANSTO’s Minerals Division, shared access could eliminate the need for individual firms to build their own pilot plants, resulting in significant time and cost savings.
More on Western supply chains: Canada is also advancing its own rare earth processing capabilities, with its first government-supported facility expected to play a major role in strengthening North America’s supply chain.
Photo: Adrian Wojcikm, art-illustrations-images