St George Mining (ASX: SGQ) has signed a memorandum of understanding with Nanum Nanotecnologia to create a strategic alliance whereby the parties will collaborate on the commercialisation of the cerium component in the large rare earths resource at the company’s 100%-owned advanced, high-grade Araxá niobium-REE Project in Minas Gerais, Brazil.
The primary focus for developing the rare earths resource at Araxá is recovery of the high NdPr content, the key magnet rare earths that comprise about 20% of the Araxá TREO, as well as heavy rare earths (HREO) that include highly sought-after elements such as yttrium, dysprosium and gadolinium.
Cerium comprises about 49% and lanthanum about 25% of the TREO content at Araxá and are relatively lower-value rare earths. Cerium is the most abundant of rare earth elements and has many uses including in catalytic converters used in vehicle exhaust systems, in iron, magnesium and aluminium alloys, and in certain magnets and electrodes.
St George is developing proprietary technology as part of the metallurgical test work being completed on the Araxá rare earths oxalate by Magbras and CETEM. This technology is focused on developing a technically simple process for the separation of the cerium and lanthanum from the high-purity Araxá rare earth product with the remaining rare earth oxide being upgraded with potentially a three-fold increase in the concentration of NdPR and HREO content. The separated cerium is then available for manufacture of a commercial cerium product.
The ability to commercialise the cerium in the Araxá rare earths has potential to add significant value to any mining operation and, importantly, deliver a mixed rare earth oxide product with a higher concentration of the high-value NdPr and HREO. Based on the rare earths components in the rare earth oxalate produced in 2012-13, the separation of cerium and lanthanum could result in the NdPr concentration enhanced to about 80% of the final product and the content of sought-after high-value elements samarium and yttrium could be more than doubled, creating a higher-value rare earth product.
Nanum has cutting-edge technology for processing cerium and is an ideal partner for St George to assess the potential to develop a product and commercialise the cerium from the Araxá rare earths.
“The magnet and heavy rare earths hosted in our world-class Araxá rare earths resource are very significant and the main driver for development of a rare earths mining operation,” St George executive chairman John Prineas said.
“The opportunity to also monetise the cerium component of the Araxá rare earths deposit can add material value to a potential mining operation at Araxá.
“Nanum is an industry leader in nano particles technology and a standout example of Brazil’s ability to be at the forefront of innovation for modern technologies.
“We are very pleased to enter into this strategic alliance with Nanum, which has the potential to boost the development potential for the rare earths opportunity at our 100%-owned Araxá project.“
