Russian Joint Venture Chooses Site for New Rare Earth Processing Plant
Site for hydrometallurgical plant chosen
Russian newspaper Kommersant reported in March that TriArk Mining, a joint venture (“JV”) between Moscow-based ICT Group and state-owned Rostec, had chosen a site for construction of a rare earth hydrometallurgical plant for processing ore from the Tomtor deposit.
The USD $110 million plant will be located in Krasnokamensk and is scheduled to be operational in 2021. Thereafter, the plant will process 150,000 tonnes of ore per annum to produce 10,000 tonnes of rare earth concentrate and 4,500 tonnes of ferroniobium per annum.
Plans to invest around $1 billion in development of Tomtor
As announced by Rostec in 2013, TriArk plans to invest around USD $1 billion in the development of Tomtor, a 154 million tonne rare earth and niobium deposit in Russia’s Far East. The JV has also taken ownership of some 82,000 tonnes of Soviet-era monazite concentrate stockpiled in Krasnoufimsk.
Pushed back development plan aligns with needs of evolving market
Following its establishment, TriArk was initially targeting first production from Tomtor in 2018 but pushed back development plans on account of a continued slide in rare earth prices.
We believe the pushed back development plan helps align the project with the evolving needs of the market although it’s unclear where rare earth concentrates from Krasnokamensk will be sent for final separation and refining.
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