usa article, page-4

Thanks for the reference.

As happens all too often, the press get things just a little bit wrong.

I sent this email to the author with a few suggestions




Hello Stuart,

I read your Bloomberg story on Rare Earths with time code (Jan 6, 2011 10:19 AM ET)

The points you make relating to the polluting effects of the Chinese extractive process are widely accepted. Hopefully this situation is improving with better regulation.

The Australian company Lynas Corporation Limited, is establishing an operation in Malaysia to extract these metals. I note you mention this company in your article and I would invite to to research the extractive technology being used. Determine for yourself just how environmentally benign production will be.

The following extract comes from the company website at: http://www.lynascorp.com/content/upload/files/Zero_Harm_flyer_FINAL.pdf

"Lynas is building two processing plants to meet international safety and environmental standards: the Concentration Plant in Western Australia and the Lynas Advanced Materials Plant (LAMP) in Malaysia.
These plants incorporate state-of-the-art technology based on extensive hazard and operability studies (HAZOPs) completed during the design phase. The HAZOP process helps identify any potential hazards and operability problems caused by deviations from the plant design intent and reflects our commitment to Zero Harm."

As a geoscientist I find myself in disagreement with your reasoning relating to the "rarity" of rare earths. In terms of crustal abundance, I agree that "Rare earth metals aren?t rare.". However, it isn't just the extractive processes that give rise to the title. The rare earths belong to a geochemical group of "lithophilic" elements that are found widely dispersed in rocks. What is rare about rare earths is that they only rarely concentrate much above background levels. Economic concentrations form only in very unusual circumstances. It may require several stages of natural concentration before a potentially economic rare earth deposit forms. This is illustrated in the following examples.

The Mt Weld deposit being exploited by Lynas formed as a vertical igneous intrusion of carbonatite. The rock itself has elevated levels of rare earths. However, as the carbonatite has weathered away, it has left a concentration of rare earth minerals. There has been two distinct stages of rare earth concentration, in the igneous rock itself and in the residue from weathering.

Northern Uranium Limited is exploring another Australian rare earth deposit at Browns Range. Here, rare earths appear to have been concentrated in two stages. Firstly there has been some concentration within a sedimentary rock known as askose. This appears to have been followed by further concentration as warm silica rich solutions invaded the sediments and cooled to form quartz rich veins. The work at Browns Range is still at quite an early stage but again there appears to have been two distinct stages of rare earth concentration, firstly in the arkose and secondly within the quartz veins.

I have no financial interest is Lynas although I have worked in the Laverton district close to where the Mt Weld deposit is located. I do have a financial interest in Northern Uranium.

Kind Regards

XXXXXXX
Consulting Geologist