Iluka advances rare earth refinery

Iluka Resources has moved closer to developing a rare earth refinery in the Mid West after clearing its first environmental hurdle for the project.

The mineral sands miner in December submitted plans to the Environmental Protection Authority to build a 17,500 tonne per annum rare earth refinery within its Eneabba mine site, located about 300 kilometres north of Perth.

It’s intended to process monazite, a mineral containing neodymium and praseodymium which are essential in the manufacturing of permanent magnets for electric vehicles.

Eneabba is thought to contain the world’s highest-grade stockpile of monazite.

The proposed refinery will use future Iluka feedstock and third-party feedstock, with product to be transported via road trains to Fremantle Port.

The EPA determined there were potential impacts on inland waters, terrestrial environmental quality and human health but said these were not significant enough to warrant a formal assessment of Iluka’s proposal, since the plant would be built within the existing Eneabba mine site.

"The EPA is of the view that the potential impacts of the proposal can be adequately managed through the implementation of the proposal in accordance with the referral documentation, and the proponent's management and mitigation measures," the EPA said.

The decision is appealable until the end of the month.

Iluka began its phase one development at Eneabba last year, and it is now producing monazite-zircon concentrate.

The second stage is under construction, and will produce a 90 per cent monazite concentrate and a zircon concentrate.

The third stage of Illuka's monazite plan is the refinery.

The Tom O’Leary-led company hopes to complete a definitive feasibility study for the refinery in the coming months, with a final investment decision targeted for the first half of 2022.