Cadoux’s NT rare earths processing play

Critical minerals developer Cadoux has moved into rare earths processing through the acquisition of a 50 percent stake in emerging downstream processor Minhub Operations (MOPL).

Under a two stage acquisition process Cadoux plans to move to 100 percent control of Minhub, which is developing the Minhub third-party downstream heavy mineral sands and rare earths production facility to be based in Darwin in collaboration with Arafura Rare Earths.

Arafura is developing the Nolans rare earths project in the Northern Territory which will produce phosphoric acid and 4,440 tonnes per annum of neodymium and praseodymium (NdPr) oxide and 470 tonnes of a mixed middle-heavy rare earth (SEG/HRE) oxide – making it one of the largest producers globally.

NdPr metals are in demand because of their use in high technology products including permanent magnets essential to electronics, wind turbines and electric motors.

Cadoux issued four million shares in return for the initial stake in Minhub, with a planned Stage 2 acquisition to see Cadoux’s ownership of Minhub Operations rise to 100 percent.

Arafura has the right to own up to 50 percent of the Darwin processing facility via pro-rata funding with Cadoux.

Cadoux’s Managing Director Roland Hill said the company has a clear critical minerals development objective.

Hill said: “Whilst HPA is our core focus, we see a unique opportunity and definite market advantage to Minhub’s development and long-term production strategy of heavy rare earths.

“We have been working closely with MOPL since May last year and are encouraged about project progress and the emerging market potential of the various rare earth streams produced.”

Cadoux has also developed an innovative process design for the production of high quality, high purity alumina (HPA) used in making lithium-ion batteries and sapphire glass used in LED lighting.

Further reading:
Arafura pushes ahead despite fall in rare earths prices

Picture: minhub.com.au