Pele Mountain Resources Plans Rare Earth Production at Eco Ridge Mine in 2016

Canadian rare earth developer, Pele Mountain Resources starts commercial operation of Eco Ridge mine in Ontario, Canada by end of 2016. The firm tries to finish feasibility study by mid-2015 to start construction of the plant. The firm expects 5,750 tonnes of rare earth oxide production in 2017 and 44,000 tonnes in the first 10 years.

The president Alan Shefsky said to a reporter of Japan Metal Bulletin in Tokyo on Tuesday the mine used to produce 35% of world yttrium production when the mine was operated by 20 years ago. He emphasized the project can use infrastructures including highway, rail, power supply, airport and deepwater port.

Mr. Shefsky said the firm plans to sell in oxide for the market. He said the firm supplies the products to Japanese users through Tokyo based rare earth trader, Material Trading Company.

Pele Mountain Resources has interest in Mountain Pass mine in USA, which is adjacent of Molycorp’s mine. Mr. Shefsky said the firm has no talk with Molycorp but indicated potential cooperation with Molycorp.

Mr. Shefsky said world supply could keep short for critical rare earth items including neodymium, dysprosium, yttrium, terbium europium while he expects oversupply for light rare earth.