Australian rare earths stocksAustralia is one of the world's...

Australian rare earths stocks

Australia is one of the world's largest rare earths producers and hosts the fifth largest rare earths reserves. The country is home to the biggest non-Chinese rare earths supplier, which is also the largest Australian rare earths stock by market cap.

1. Lynas Rare Earths (ASX:LYC)

Market cap: AU$4.213 billion; share price: AU$6.71

Lynas Rare Earths is the leading separated rare earths producer outside China. The company operates the Mount Weld mine and concentrator in Western Australia and sends mined material for refining and processing at its separation facility in Malaysia.

The company received US$30.4 million in funding from the Pentagon to build a light rare earths processing facility in Texas, and earned another contract to build a heavy rare earths separation facility in the state. The project's completion will not only benefit Lynas, but also the rare earths industry in both Australia and the US.

In mid-2023, Lynas received AU$20 million in funding from the Australian Government's Modern Manufacturing Initiative. The grant will partially fund the Apatite Leach Circuit project at Lynas’ Kalgoorlie Rare Earth Processing Facility. The company announced in December that the Kalgoorlie Rare Earths Processing Facility had produced its first feed of material. "This is an important milestone and marks the transition from the commissioning phase to first production and ramp up of the facility," stated the press release.

2. Iluka Resources (ASX:ILU)

Company Profile

Market cap: AU$1.806 billion; share price: AU$6.31

Iluka Resources is working to develop its Eneabba rare earths refinery in Western Australia with a loan from the Australian government, which has made a significant commitment to increase its global share of the rare earths market through the development of the country’s largely untapped rare earths reserves.

The Australian Government is providing a AU$1.25 billion non-recourse loan to Iluka under the AU$2 billion Critical Minerals Facility administered by Export Finance Australia.

The refinery Company Profilewill be fully integrated for the production of light and heavy separated rare earth oxides and will be capable of processing material from Iluka’s feedstocks, as well as from third-party suppliers. The company expects first production to commence in 2025. The company has an agreement with Northern Minerals(ASX:NTU) for the supply of rare earths concentrate from Northern Minerals' Browns Range project.

The company's Wimmera project in Victoria involves the mining and beneficiation of a fine-grained heavy mineral sands orebody in Victoria's Murray basin for the potential long-term supply of zircon and rare earths. A definitive feasibility study on Wimmera is slated for completion at the end of 2025.

3. Arafura Resources (ASX:ARU)

Company Profile

Market cap: AU$243.542 million; share price: AU$0.16

Arafura Resources is another Australian rare earths company that has secured government funding to support project development. Arafura is developing its Nolans rare earths project in the Northern Territory.

The Nolans project's definitive feasibility study shows it is highly enriched with neodymium and praseodymium, but contains all of the different rare earths in varying concentrations. Arafura has secured binding offtake agreements with Hyundai Motor (KRX:005380) and Kia (KRX:000270), as well as Siemens Gamesa Renewable Energy. Additionally.the company has a non-binding memorandum of understanding with General Electric Company's (NASDAQ:GE) GE Renewable Energy, to collaborate on the establishment of sustainable rare earths supply chains.

Arafura has plans for Nolans to be a vertically integrated operation with processing facilities on-site. An updated mine report from 2022 states that Nolans has a 38 year life at a capacity of 4,440 MT of NdPr concentrate production per year.