A great article. many thanks. The KSM plant looks...

A great article. many thanks. The KSM plant looks excellent.

Visiting the KSM Metals 'Rare Earth Processing Line'

• Reporter Shin Seok-ju
• Approval 2022.01.05 13:44
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Establishment of Korea’s rare earth supply chain… Stabilization of supply and demand of core parts 'Signal flare'
Eco-friendly production method operation... Efforts to alleviate the disgrace of rare earth pollution

[Energy News] As the energy transition to achieve carbon neutrality accelerates, securing 'core minerals' has emerged as a major task worldwide.

In particular, rare earths, called 'vitamins of high-tech industries', are in the spotlight as key materials for future industries such as information technology (IT) products such as smartphones, computers and displays, and electric vehicles. However, the world's rare earth reserves are extremely small, and the competition among countries to secure 'rare earth' has intensified, causing a 'rare earth war'.

▲ The main gate of KSM Metals factory.

In this situation, there are companies that are paying attention. That's KSM Metals. In November of last year, Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki visited the Ochang Factory of KSM Metals in Chungcheongbuk-do, a production facility for the typical rare earths neodymium (Nd) and titanium (Ti).

This plant is a rare earth processing line established in Korea by Australian Strategic Materials Ltd (ASM), a rare metal mining and processing company.

KSM Metals aspires to provide a stable alternative supply chain for core metals by completing a plant with an annual production capacity of 5,200 tons in the second half of 2022. This magazine directly visited the Ochang Factory of KSM Metals, which can create synergy in the production of rare earths in Korea.

'From Mine to Metal' Rare Earth Production 'Role Model'
Founded in New South Wales, located in Eastern Australia, ASM is an integrated raw material company that covers the entire 'from mine to metal' process that produces core metals used in high-tech clean technology fields. is an enterprise

In particular, in a large mine located 400km northwest of Sydney, Australia, various high-purity metals and alloys such as titanium, neodymium, praseodymium, disposium, and zirconium are mined, as well as eco-friendly oxide manufacturing technology through joint research with the Australian Atomic Energy Research Institute (ANSTO) for 20 years. It has the infrastructure to supply environmentally friendly raw materials for more than 100 years.

Their core business is the 'Dubbo Project'. It is a project to produce a variety of highly processed oxides and metals with high purity by processing zirconium, rare earths (including praseodymium and neodymium), niobium, and hafnium that are stably supplied from New South Wales. It completes an innovative metallization process that converts to producing high-purity metals, alloys and powdered oxides.

There is high expectation that the Dubbo project will satisfy the rapidly increasing demand for these materials in the global market and prove the possibility of sustainable and stable supply chain expansion.

ASM believes that the pilot plant in Korea will be an important key to demonstrating the commercial scalability of this process. ASM's relationship with Korea dates back to 2019.

Established a joint venture with Korea's Zirontech, and started to test production of 100% pure metal of Korea's zirconium technology.

As a result, Australia's ASM provides stable and sustainable resources to Korea through eco-friendly mining of large-scale mines, and has laid the foundation for the production of strategic resources such as rare earths and rare metals in Korea by utilizing Korea's advanced technology and excellent manpower.

In March of last year, through an investment agreement with North Chungcheong Province, a rare earth production base was established in Ochang, Cheongju, North Chungcheong Province, and a blueprint was presented such as supplying domestic rare earths and rare metals, establishing a rare earth value chain, and creating a rare metal cluster.

▲ KSM Metals imports minerals such as rare earths into Korea in the form of clean 'oxides' and stores them.

Removal of pollutants, introduction of 'clean' oxide The reason
rare earths are scarce is that they can cause serious environmental pollution in the process of refining as much as their reserves, making it difficult to expand the industry.

According to the international environmental group Greenpeace, 'beneficiation', which emits radioactivity in the process of extracting thorium contained in rare earth materials, is considered an environmental pollutant, and toxic acid substances used in the refining process are also fatal to the environment.

Experts point out that “the process of separating, refining, and alloying rare earths not only requires high technology and long-term accumulated know-how, but also generates huge amounts of pollutants in the process,” and the contrast of rare earth production is clear. emphasized.

Therefore, it is also true that when an article about Australian ASM to build a factory in Ochang, Chungcheongbuk-do came out, concerns about environmental pollution were high.

In response, KSM made it clear that it would remove all rare earth pollutants from Australia and bring them to Korea in the form of clean 'oxide'.

“I think it is a misunderstanding about the production process of rare earths in Korea. As mentioned earlier, in Korea, the process of refining rare earth raw materials is not performed, but it is misunderstood as if this process is being carried out in Korea.” Securing manufacturing technology.

He emphasized that there is no need to worry about environmental problems at all because only oxides from which most of the pollutants have been removed from the refining process are imported into Korea through this technology.

In fact, ASM eliminated concerns about environmental pollution by bringing raw materials mined from mines in Australia in the form of powder that has removed 99.9% of pollutants. This enabled ASM to secure eco-friendly oxide manufacturing technology through 20 years of joint research with Australia's Atomic Energy Research Institute, thereby stably supporting clean rare earth oxides in Korea.

"We will strive to secure a stable rare earth supply chain"

Interview with Moon Seok-jin, president of ASM Asia

Q. The Ochang plant started the first-stage test operation of the high-temperature furnace. What does this mean?
This pilot operation is symbolic in that it has realized the 'from mine to metal' project in both Korea and Australia. It is also meaningful that Australia, which has abundant resources, and Korea, with its technological prowess, can cooperate to create a synergistic effect, thereby demonstrating Korea's power in the rare earth market. Currently, China monopolizes the global supply chain for rare earths and core metals. The problem is that China's new and renewable energy and electric vehicle industries are showing rapid growth, which has increased its own demand. Therefore, it is an achievement achieved at a time when major domestic industries need diversification of supply and demand for core metals.

Q. I wonder what kind of charm Korea has as a partner.
Above all, I thought about the 'synergy' that Australia and Korea would bring. Australia judged Korea to be the most suitable country among countries that can make a sufficient impact in the global market through core metals including rare earths. In Korea, there are many companies that develop and produce electric vehicles, electronic products, and wind power generators, and technology related to the 4th industry has greatly developed based on the highly advanced manufacturing industry. It has a strong foundation when it comes to encompassing the entire industry. However, since the supply of rare earths is absolutely dependent on China, the supply (Australia) and demand (Korea) match better than any other country, so it is expected to have a positive effect on stabilizing Korea's rare earth supply chain and increasing mutual benefits. .

Q. What is the production scale of rare earths at the Ochang Factory?
First of all, the first phase test operation is planned to continue until the first half of 2022, and the plant with an annual production capacity of 5,200 tons is expected to be completed in the second half of 2022. When the plant is completed, the production scale of rare earth and other minerals at the Ochang plant in 2024 is expected to more than triple that of 2023. Of course, it may fluctuate depending on market conditions, but we expect demand for rare earths to steadily increase. In the future, Korea will be able to reliably receive minerals such as rare earths from ASM.

Q. What are your plans for the future?
Above all, we will strive to provide a stable supply of rare earths to Korea, while also striving to build a value chain so that they can be supplied to domestic companies. In the long term, the company plans to expand its supply chain to third countries such as the United States and Europe. In addition, in line with the growing importance of ESG (Environmental, Social, Governance) management, ASM will strive to grow into an environmentally friendly, social, and transparent company. Lastly, we plan to actively engage in publicity activities to resolve misunderstandings about rare earth elements.