"Something I would like to understand better is how different...

"Something I would like to understand better is how different the economics might look when you are potentially extracting Kaolin/Halloysite i the same process, relative to a pure REE IAC play?"... one of the right questions to ask obviously, REE and kaolin being sold as a pigeon pair with <45micron beneficiation as it is.

In terms of Halloysite product of what, 70-100ktpa tops if market will take it, throughput volumes seem incongruous with IAC deposits required throughput. Makuutu uses a few years of higher grade and scoping study costs (?) to help fund expansion to a meaningful 12Mtpa with internal cashflow. Grades being as low as they are for ICD's, maths requires big tonnes an order of magnitude higher than Halloysite production to be meaningful. Can't see it's worth the considerable capex/opex to run REO production in conjunction with small tonnes of kaolin...



So next option is selling large tonnes of kaolin by-product from the Halloysite and extra kaolin as stand alone production to get REO production tonnage up to meaningful economic level. Maybe if the cement industry made a big shift into kaolin clay substitution for lime to reduce CO2 then a meaningful amount of <45micron material could be run trhough REO extraction leach before it moves on to halloysite and kaloin production proper. That is thebeauty of by-product credits when material from one large mine creates multiple product streams. Is the stand alone koalin market going to grow enough to support say 5Mtpa min REO feed for leaching?

Grade needs to be accounted for obviously and so far Ethiopia's average approximates Makuutu's resource average at best, but only after <45micron fraction is separated. To reach 5Mtpa of <45 micron leach feed with 35% material reporting <45, they need to mine 15Mtpa from the pit before beneficiation. That's a lot of tonnes, lot of energy separating <45 fraction with hydroclones to reach 5Mtpa of feed. Without selling the kaolin post-leaching and further processing you can see why I worry simply running a RE operation on REO product alone won;t make bank. It may well make sense if that 5Mtpa of leach feed foes on to make valuable kaolin product.

cheers