Great Western agrees to build rare earth plant in SA

Panorama

Publishing Date: 28 Jul 2011 11:11am GMT
Author: Mining Magazine

Processing

Great Western Minerals Group (GWMG) has negotiated a heads of terms agreement with China-based Ganzhou Qiandong Rare Earth Group (GQD) to build a rare earth separation plant in South Africa. The plant will be located close to GWMG’s Steenkampskraal operation.
GWMG hopes to have a final agreement by the end of August 2011. A new joint venture company will be created, called Great Western GQD Rare Earth Materials Co, in which GWMG will hold 75% ownership and GQD will hold 25%.
The company will be responsible for the design, manufacture, construction, commissioning and operation of the planned separation facility. The separation plant is planned to be fed with rare earth chloride produced at GWMG’s Steenkampskraal monazite mine and with feedstock from sources in the region.
GQD is a Chinese processor of rare earth oxides and metals, with over twenty years of operational experience. GQD has been supplying metals and oxides to GWMG’s subsidiary, Less Common Metals (LCM), for over fifteen years.
Jim Engdahl, president and CEO of GWMG, said: "Our agreement with GQD marks one of the most significant developments so far in the delivery of our fully integrated rare earth business model. GQD's experience in the rare earth industry will ensure our new facility will be at the cutting edge of solvent extraction processing. GWMG's team of metallurgists will be working closely with those from GQD to finalise process and plant design in order to commence construction of this plant early in 2012. This agreement is a major step in our plans to deliver separated rare earth oxides and metals to the world market by the beginning of 2013."
Mr Gong Bin, chairman of the board and president of GQD, added: "The world of rare earths has gone through significant changes in the past two years. We at GQD welcome this opportunity to work with GWMG and our old friends at LCM in establishing a new integrated rare earths producer that is able to supply ever increasing world demand."