Countdown for Lynas: Where are Europe's refineries?

With its refinery in Malaysia, the Australian mining company Lynas offers the West an alternative to China. In contrast to the People’s Republic, however, the Malaysian government keeps a strict eye on environmental regulations. These are due to be reviewed at Lynas at the beginning of the new year. As a result, the raw materials company could be forced to abandon its refinery in the country and move it back to Australia.

Rare earths are extracted from ores such as monazite, bastnäsite, or xenotime. They are then separated from one another, as they only occur in associated forms. Before industry can use them in their oxide powder form, six steps are necessary: mining, processing, extraction, separation, purification, and processing. The separation processes involve large quantities of sulfuric acid and other environmentally harmful substances, which is why rare earths were considered “dirty” in the 1980s. However, this view is currently changing as more and more processes are being discovered that enable “greener” production.

Sensitivity to the production conditions of rare earths is growing, not least because of the Supply Chain Act. New “green” processes, such as those being researched in Norway (as we reported), are making rare earths more expensive. However, this will lead to more countries finding it worthwhile to open mines and, above all, refineries to produce these commodities “greenly.” Even if this takes many years, it is the only way to overcome the dependence on China.

Noble Elements supports more environmentally friendly production, to which it also contributes through its investment in a rare earth mining project in South Africa. The mining company there adheres to current standards in environmental protection and labor law and also intends to rely primarily on renewable energies for its power supply.