The South Asian country seeks to profit more from its natural wealth.
Canada Rare Earth Corp. has announced a Memorandum of Understanding (MOU) with a private Laos-based company to acquire a controlling interest in a fully permitted rare earth refinery in Laos. The MOU gives the company the right to purchase a 70% stake in the refinery close to Vientiane, the Laotian capital, capable of producing both light and heavy rare earth oxides with a production capacity of 3,000 tons per year. The refinery is due to be commissioned in the fourth quarter of 2025, following modest refurbishment work, the company added.
The twelve-year-old refinery has never been operational due to a policy shift in the country, opposing new rare earth projects. However, the government has recently reversed course and is actively encouraging new processing operations within the country using locally sourced feedstock. In late 2023, Prime Minister Dr Sonexay Siphandone instructed the government agencies to draft a revised strategy on rare earths, arguing that the country would benefit more from its natural resources by exporting processed goods than raw materials.
Laos – A New Heavy Rare Earth Player?
The deposits in Laos are predominantly hosted in ionic adsorption clays, which are especially rich in so-called heavy rare earths, such as dysprosium and terbium. These coveted resources are scarcer than their light counterparts. In magnets, their addition enhances durability and boosts performance, making them essential for high-demand applications. At present, China dominates the global production of heavy rare earths, relying heavily on feedstock from neighboring Myanmar.
However, Chinese companies have already begun to recognize the untapped potential of Laos. Last year, Chinese mining company Chijin Xiawu acquired a 90% stake in a Laos-based rare earth mining firm, marking a significant investment in the region’s resource potential. Earlier, in 2022, Xiamen Tungsten—one of China’s leading rare earth companies and its largest tungsten producer—partnered with another Chinese miner to establish a joint venture focused on exploring rare earth resources in Laos.
Canada Rare Earth is also pursuing a 70/30 joint venture to co-develop an advanced-stage ion adsorption clay rare earth mining project, which would complement the refinery acquisition.
Photo: CreativePhotoCorner via Canva