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China currently controls a good proportion of both the extraction and processing of rare earth elements across the world. Western economies are becoming increasingly green and so China places an increasingly large part in what we can and cannot do. The distribution and extraction of rare earths needs to be less concentrated on a single player in order for the west to maintain its economic and military dominance.
Who gets to rule the World
Geological Distribution of Rare Earths
This article is a follow-up to our last one, in which we discussed supply chain issues around the acquisition of rare earth elements (REEs) in North America. In this treatise we’ll be focusing on the efforts being made in Ontario to address challenges of a supply system that’s heavily influenced by China’s political and domestic ambitions.
Apatite can become enriched with a number of different elements during formation or later hydrothermal alteration. In fact, elements are so interchangeable that they can substitute up to half the elements in the periodic table. These alterations and enrichments tend to reflect early environments, from geological processes to early sea temperatures. Sometimes in the enrichment of a particular element, the apatite then becomes the target of an industrial extraction for something other than its phosphate.
The lanthanide series plus scandium and yttrium comprise the group of elements that we refer to as the rare earths. They are often discussed as either light or heavy REE depending on their atomic number, with HREE often more valuable than LREE. Apatite is commonly known to host REE and it is a possible source for future expansion in the market. The ability to mine for both phosphate and REE enables a more cost efficient mining practice. There are two processes of REE enrichment within apatite, the first is the substitution of REE3+ and Na+ for Ca2+ within the apatite, the second is P5+ substituted with REE3+ and Si4+. The end member of the second substitution is britholite, a mineral heavily enriched in REE.
At Dark Star Crystal Mines, located in Ontario's mineral-rich heartland, these developments around sourcing and extraction of rare earth minerals are particularly relevant. We do have REEs on our claim in the form of monazite, a relatively common rare earth ore. Our apatite crystals also show the rare earth spectrums for praseodymium and neodymium, however the economic viability of extracting them for industrial purposes is still in question. That said, REEs are certainly not rare in Canada. Ontario has plenty of locations where they can be economically extracted. REEs are found in Ontario mainly in the minerals, bastnäsite, monazite and xenotime. Bastnäsite is a fluorcarbonate that tends to tie up the lighter REEs and is preferred for extraction as there is less thorium in its content. Monazite is a phosphate mineral that ties up the heavier rare earths and is typical to placer deposits as a sand because of its weight.
As Jack Lifton points out, "The US Government does not understand the economics of rare earth mining." Despite global attention on Ukraine and Greenland’s rare earth potential, Lifton argues it’s “not even worth discussing” — REEs are abundant, but the real issue is whether they can be economically extracted. “If you were to set up a mine in Ukraine, your property would still be developing when your grand children are retiring.” Canada, conveniently located just north of the US border, is ready for immediate development and at this very time there are companies and Government initiatives that are focused on infrastructure development in the ‘ring of Fire’ reigon. Rare earths are increasingly part of everything that we manufacture from night vision goggles to cars. The Toyota Prius has 16 kg of rare earths, mainly lanthium in the battery, but also neodymium in the motor's magnets, the very element that appears in the apatite of Eastern Ontario's old phosphate mines.
The Distribution and Importance of Rare Earth Elements (REEs) in Ontario
Canada’s 2023 REE reserves were estimated at 15.2 million tonnes, positioning the country as a potential global REE supplier. However, extraction is only part of the equation. Refining REEs is equally important in determining who controls the supply. In response to the growing importance of these minerals, Canada is investing in both exploration and refining. Ontario, in particular, is emerging as a key region, especially with exploration projects targeting the heavy rare earth elements (HREEs), which are globally in short supply. Known deposits seem to concentrate around areas where metals are already being extracted, and in the ‘Ring of Fire Area”, in Ontario’s far north, there were 26,000 active mining claims as of Jan. 2022
China controls the global REE market. It is responsible for 70% of mined REEs and 87% of refined products and it has demonstrated that it will restrict supplies for geopolitical and domestic reasons. I suppose it was the motivation that got exploration going in Ontario. While President Trump demonizes windmills, the rest of the world sees them as key to a green future, but a green future is dependant upon the west stepping up to break China’s control. Ontario leads the way on several levels.
What Are Rare Earth Elements (REEs)?
Despite their name, REEs are not particularly rare. Cerium, the most abundant REE, is more plentiful than copper. However, most rare earths are extracted as byproducts from other mining operations, with China benefiting from rare earths in the ore tailings of its iron mines; it is the largest iron ore miner and the largest steel producer in the world, so equally it has had the benefit of being a by-product recipient for rare earths. The iron mines in Mongolia have tailings rich in rare earths, it’s a 2 for 1 deal. Some REEs, like promethium, are extremely scarce due to their radioactive nature and short half-life. Though technology has made progress, China’s crude extraction methods are causing severe environmental damage, as demonstrated in Guangdong, where soggy red earthed bogs are pierced by PVC pipes. Ammonium solutions are pumped down the pipes and they leach rare earths from the soil. Whats left after the leaching is a moonscape of chemical mush unsuited to farming for decades.
Canada, on the other hand, focuses on more sustainable extraction methods, rejecting China's environmentally harmful techniques. This is where Canada’s innovation and research in REE extraction comes into play.
Ontario’s Role in REE Exploration
Ontario is home to significant REE deposits. They are especially represented by the REE minerals, bastnäsite, monazite, and xenotime, found in regions like Sturgeon Falls, Elliot Lake, Lackner Lake, and Kapuskasing. And on the Ontario Manitoba border, a 3 kilometer wide magnetic anomaly known as “the Carb Nb/Ree project” appears to have concentrated deposits of lanthanum and cerium. The two REEs usually occur together in one of the REE minerals with lanthanum being about 3X as common as lead, it typically comprises about ¼ of the REE content of its encompassing mineral.
Elliot Lake: A Hub for REEs and Uranium
Elliot Lake, known for its uranium deposits, has recently attracted attention for its REE potential. In 2007, drilling uncovered a rich concentration in a 12-foot-thick layer of mineralization, thus adding a new layer of value to this mining hub. Like China’s iron mines, Elliot Lakes uranium deposits can also take on a value added process.
The Global Demand for REEs and Ontario’s Strategic Importance
By 2030, global demand for REEs is expected to soar, fueled by the decarbonizing of first world economies. Ontario's Critical Mineral Strategy (2022-2027) is poised to break China’s monopoly, with $4 billion backing the initiative.
Despite their near 90% control in the rare earth supply chain, China are now importing 40% of their rare earth needs. Their main focus appears to be growth in their domestic economy, but again, this need leads to shortages. As Ontario’s strategy highlights, "There’s no energy transition without Critical minerals." With the identification of 31 critical minerals, six, including REEs, have been prioritized for economic growth and supply chain stability.
Additionally, a $70 billion fund is supporting Canadian companies to develop global partnerships outside China’s influence. Not everything can be sourced in Canada, but a heck of a lot can be mined from Ontario’s rock and tailings.
Ontario's role in REE exploration is expanding. Companies like Avalon Advanced Materials in Thunder Bay are tapping into old mine tailings, revealing abundant untapped resources. Ontario’s mineral wealth, combined with innovative technologies, is positioning the province as a leader in the global REE market.
Challenges and Opportunities in Ontario's REE Industry
Despite its potential, Ontario’s REE industry faces challenges. Canadian REE deposits are often complex, making extraction and processing difficult compared to simpler deposits elsewhere. Moreover, environmental and ethical concerns require specialized techniques and careful handling. However, companies like Ucore in Kingston are already using advanced technologies to separate light and heavy REEs efficiently. As CEO Pat Ryan explains, their RapidSX technology provides a competitive edge in the Western world’s race for REEs.
Canadian research labs have also developed extraction processes that operate at lower temperatures than traditional methods, making them more cost-effective and environmentally friendly.
Conclusion
In conclusion, Ontario’s REE industry has a bright future. With abundant resources, increasing exploration efforts, and supportive government initiatives, Ontario is positioned to play a pivotal role in global REE production.
By overcoming technical challenges and capitalizing on its mineral wealth, Ontario can lead not just in Canada but also in the global REE market. However, it’s important to remember that copper is just as crucial as REEs in the green transition.. 30 million tons of copper are mined each year and much as there is concern about the supply of rare earths, electricity harnessed by rare earths cannot be moved from supplier to consumer without copper wiring, in fact, it takes about ¼ ton of copper to wire a new house and then the copper remains locked in the building well into the next century. It’s clear that the future of mineral extraction in Ontario extends beyond just rare earths. Ontario has a good proportion of the critical minerals as well.
Is it any wonder that Trump suggested Canada might become the 51st state? We have a lot going for us, and the world knows it.
