TELF AG examines the latest developments in Australia’s mineral strategies
Demand on the rise
According to recent estimates by the IEA, global demand for rare earths has accelerated growth in recent years, particularly between 2015 and 2023, a period in which it almost doubled. By 2050, according to the Parisian agency, this demand could double again, driven in particular by the applications of rare earths in clean energy technologies. One of the most interesting applications, in the years of the energy transition, is that which has to do with the powerful permanent magnets made with some rare earths, which are already powering (and presumably will continue to do so) the engines of some important energy infrastructures linked to renewables, such as wind turbines.
One of the nations that could benefit the most from this situation is undoubtedly Australia, which, in addition to being one of the most prominent global players in the geological raw materials sector, also holds 4% of the world’s rare earth reserves. According to a recent analysis, Australia should focus not so much on traditional rare earth deposits, characterized by a high degree of quality, but on lower-grade ones, in which it would still be possible to find certain quantities of some of the most sought-after types of rare earths. In this way, according to the analysis, this would allow Australia to valorize resources considered particularly complex to obtain (such as heavy rare earths) and make it possible to substantially extend the Australian value chains in this specific sector, thus increasing its value and attractiveness.
These objectives are at the heart of the operational strategies of the Australian Critical Minerals Research and Development Hub, which brings together the efforts of the leading Australian scientific agencies to strengthen and expand the national potential linked to rare earths, including through the discovery, sourcing, and processing of rare earths from lower-grade deposits. Among the many Australian deposits that are still untapped, according to the research, there are also large quantities of lower-grade mineral deposits that could prove strategically helpful in the complex rare earths sector.
The role of lower-grade deposits
Traditionally, rare earth elements (17 in total, and not that rare) are divided into light rare earths and heavy rare earths. The former, which includes resources such as lanthanum, cerium, praseodymium, and neodymium, are quite common. In contrast, the latter (which include elements such as lutetium, thulium, and ytterbium) are rarer and appear on the right side of the periodic table. Over the years, some of the most appreciated properties of these resources (such as exceptional optical and magnetic capabilities) have made it possible to use them to produce important engine components for electric vehicles and the above mentioned energy infrastructures related to clean energy.
The study argues that Australia should work hard to improve its understanding of lower-grade deposits by familiarizing itself with their formation, mineralogy, and the processing of the resources contained within them. Australia’s knowledge of high-grade, very high-grade deposits is now considered a given by many operators, particularly in sourcing and processing, so a deepening of the know-how relating to lower-grade deposits could represent a major step forward for the Australian sourcing industry.
According to the report, one particular type of deposit to consider is the clay deposit. Although they contain lower quantities of minerals than the higher-grade deposits, reasonable amounts of heavy rare earths could be found in these deposits, which, as we have seen, are less common and more valuable. For Australia, according to the analysis, the valorization of these resources would inevitably positively impact the overall solidity of the entire supply chain.
