Rare Earths

About

Rare earths include 17 elements, comprising the lanthanide series along with scandium and yttrium, which are integral to a myriad of modern applications, from consumer electronics to national defence systems.

Individual rare earth elements serve distinct and critical functions across various industries. Lanthanum is utilised in camera lenses and battery electrodes, while cerium finds applications in catalytic converters and glass polishing. Europium is a key component in red phosphors for LED displays, and gadolinium is employed as a contrast agent in magnetic resonance imaging (MRI).

The unique properties of each element make them indispensable in their respective applications, underscoring the strategic importance of securing a stable supply.

Environmental considerations have further influenced the rare earth industry. The extraction and processing of rare earths are often associated with significant ecological impacts, particularly in China, including habitat destruction and the generation of toxic waste. These concerns have prompted stricter environmental regulations in many countries, leading to increased operational costs for producers.

Lanthanum

Lanthanum is a key component in mischmetal for lighter flints and torches. It is also used in camera lenses, battery electrodes and being used in hydrogen storage technologies.

Cerium

Cerium is a key component in catalytic converters, glass and electronics polishing, and a pigment in paints and ceramics.

Neodymium

Neodymium is a vital component in NdFeB magnets, which power electric vehicle motors, wind turbine generators, and a wide range of high-efficiency electronics. Its strong magnetic performance makes it indispensable in the global shift toward renewable energy and electrification.

Praseodymium

Praseodymium is a rare earth element primarily used in high-strength permanent magnets when alloyed with neodymium. It also plays a key role in aircraft engines, advanced ceramics, and specialized glass applications due to its magnetic and optical properties.

Dysprosium

Dysprosium enhances the heat resistance and durability of permanent magnets, making it crucial for applications in high-temperature environments like EV motors and military technologies. It is considered a strategic element due to its limited global supply and increasing demand.

Global Rare Earth Market

In the early 2000s, China solidified its position as the dominant force in the global rare earth market. By 2010, the country accounted for approximately 97% of the world's rare earth production. This near-monopoly was a result of strategic investments and policies that enabled China to offer rare earths at lower prices, leading to the decline of production in other countries. However, this dominance also introduced vulnerabilities into the global supply chain. A notable instance occurred in 2010 when China imposed export restrictions, causing a sharp spike in rare earth prices and prompting other nations to reassess their dependence on a single supplier.

In response to these supply concerns, several countries initiated efforts to diversify their sources of rare earths. The United States, for instance, revitalised operations at the Mountain Pass mine in California, which had been dormant since 2002. By 2023, US production had risen to 43kt, reflecting a concerted effort to reduce reliance on Chinese imports. Similarly, Australia emerged as a significant player, with companies like Lynas Rare Earths establishing themselves as alternative suppliers. The Australian Government has provided grant funding to Iluka for the establishment of a rare earth refinery in Western Australia.

The demand side of the equation for rare earths has been equally dynamic. The proliferation of smartphones, electric vehicles (EVs), and renewable energy technologies has led to an increased need for specific rare earth elements. Neodymium and praseodymium, two light rare earth elements, are essential for manufacturing high-strength permanent magnets used in EV motors and wind turbines. The global shift towards green energy solutions has further amplified the demand for these elements, as nations strive to meet ambitious carbon reduction targets.

Rare Earths in Malawi

There are over 14 mapped carbonatites surrounding or within the project area at Lake Chilwa. Two of these projects have deposits that are being progressed towards production. Lindian Resources’ Kangankunde REE Project has an Inferred Mineral Resource of 261Mt at 2.19% TREO for 5.7Mt TREO. Mkango Resources’ Songwe Hill REE has Measured and Indicated Mineral Resources of 21.03Mt at 1.41% TREO for 297.4kt TREO.

An aeromagnetic and radiometric survey completed by Chilwa in 2024 identified 46 targets that may represent carbonatites or alkaline intrusives plus a further 17 dykes, which may be sources for rare earth mineralisation.

The survey highlighted the REE prospectivity within the project, both for primary and clay-hosted mineralisation.

The Company’s geophysical consultants have interpreted the new surveys and highlighted a number of features that may represent targets for REE mineralisation. Over 63 geophysical features/ anomalies have been identified, with the majority in the bottom half of the project area.

Chilwa Island is a known carbonatite and represents a significant primary target. Other ring shaped targets have been identified in the Southern Extension Area and Mpyupyu Area that require ground truthing.