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By Metal Miner – Nov 05, 2024, 1:00 PM CST
- Supply chain disruptions in Australia, including funding issues for Iluka Resources’ refinery project and sulfuric acid shortages for Lynas Rare Earths, are impacting the global rare earth market.
- China’s export ban on rare earths and its strategic supply management practices continue to influence global prices and market dynamics.
- These developments highlight the importance of diversifying rare earth supply chains and the challenges faced by countries like Australia in reducing their dependence on China.
Via Metal Miner
The Rare Earths MMI (Monthly Metals Index) saw its upward price action slow as prices experienced only a slight uptick of 0.38%. While upward price action for rare earths did lose steam month-over-month, prices could soon witness another bullish boost. Not only did China’s rare earth export ban go into effect as of October 1, but Australia, a large manufacturer of rare earths, is now experiencing supply chain disruptions.
Australia’s Rare Earth Manufacturing Disruptions
The rare earths industry in Australia has witnessed numerous supply chain interruptions in recent months. Thanks to these occurrences, the pricing of rare earths and the business plans of companies that rely on these vital resources have seen supply impacts. These, in turn, continue to cause reverberations throughout the worldwide market.
Australia established itself as a major player in the global rare earths market in recent years. This is due in large part to the country’s determination to diversify its supplies away from China, which currently controls most rare earth manufacturing. Large projects like the refinery at Iluka Resources and Lynas Rare Earths processing facility in Kalgoorlie exemplify this pivot.
That said, Australia’s position has been under strain due to recent supply chain challenges and finance issues related to these projects. Stay on top of REE metal market shifts like these and prepare metal spending accordingly.
Iluka Resources’ Refinery Funding Stalemate
One of Australia’s biggest mineral sands firms, Iluka Resources, recently encountered a significant obstacle with its Eneabba rare earths refinery. Iluka originally possessed backing from a $1.25 billion loan from Export Finance Australia. However, growing costs have forced the project to request more money, bringing its anticipated expenditures to somewhere between $1.7 billion and $1.8 billion. As a result of this funding stalemate, Iluka had had to place a number of important contracts on hold.
Both the project’s schedule and Australia’s goals to increase rare earths independence saw significant impacts from the Iluka delay. When the refinery is up and running, it processes heavy rare earth elements, which are hard to get outside of China.
Lynas Rare Earths’ Sulphuric Acid Supply Disruptions
Over the past month,