Our client was establishing a rare earth operation. However, before investing in a separation plant, they wanted to sell an intermediary mixed concentrate product in order to realise cash sooner. Core Consultants was brought in to understand whether there was a market for a mixed rare earth concentrate.
We used a combination of a desk-top study and primary sources to establish which smelters purchase mixed rare earth concentrates. In addition, we evaluated whether certain end users make use of mixed rare earth concentrates.
A German-based chemical firm indicated that they would purchase a mixed rare earth concentrate. In addition, two Asian based smelters were interested in buying the concentrates, though the price was too low and would not be to our clients’ benefit.
We managed to ascertain that while there was a market for a mixed rare earth concentrate, the revenue from this product would not have been sufficient to warrant making the investment.