ReElement Technologies Corporation and Pensana PLC Join Forces to Advance One of Largest Global Rare Earth Oxide Supply Chain Partnerships

Thanks @MargyAllSeasonsPR

Yeah this is great work by Management for Phase 2. @Fundamental posted this under Phase 2 discussions.

So now they have ReElement (USA based) and Toyota for Phase 2......it is interesting choice between the two. ReElement is more of a start up (with alot of work done and everything progressing)....whereas Toyota Tsusho Corporation is fully established (77 years) and major supplier to Toyota.

Pros and cons for each....
 
Thanks @MargyAllSeasonsPR

Yeah this is great work by Management for Phase 2. @Fundamental posted this under Phase 2 discussions.

So now they have ReElement (USA based) and Toyota for Phase 2......it is interesting choice between the two. ReElement is more of a start up (with alot of work done and everything progressing)....whereas Toyota Tsusho Corporation is fully established (77 years) and major supplier to Toyota.

Pros and cons for each....
Never seen a setup like this before... two partners lined up for what sounds like the same stream of MREC? Got me curious. From what I can tell, most mines pick one downstream refiner per phase, esp once offtake kicks in. Keeps things aligned on specs, logistics, and tech flow. You don’t usually split that unless you’re hedging.

ReElement's got serious upside but they’re still scaling. Marion site isn’t live yet, and even Noblesville is in buildout mode Pensana might be covering their bases in case ReElement can’t hit full volumes on time.Then you got Toyota Tsusho, a beast with 70+ years in supply chain muscle and locked in with Toyota itself. Normally that’s who you go w if you’re betting on surety. So if Pensana trusts them fully, why bring in ReElem unless there’s some doubt or price leverage in play? Feels like they’re hedging risk on both ends... or buying time till one of them proves it can go the distance.
 
Pensana could be very successful, but IMHO they need to lock in some critical parts of their project. Like binding off take (at least a significant %) and likewise with finance.

The reason I say this, is that they are not procesing to an oxide, only to a concentrate. So their customer market is limited somewhat to customers that are prepared/equiped to process to the oxide and the associated radiation disposal issues.

I say this, however, given they are proceeding construction without off take secured, the people who are financing the construction, but have great comfort that the off take becoming a binding contract is a formality. But as a retail investor, I would prefer to see those binding contracts.
 
I appreciate your thoughts John, even twelve months ago they were pertinent. However, in today's world, I think we can now forget about RE miners needing secured Off-take arrangements. Why? because 'End users' are going to have to start bidding for supply.

China is already changing its valuation of RE's, now that the rest of the World has started to realise the true 'critical' value of them. If China wants to continue with its plans, to power its next step in the Transport revolution ie upgrade their existing network of High Speed Trains to Mag-Lev; I estimate that they are going to need approximately 5kg of magnets per ton of train, and roughly the same per metre of track ! China currently has 50,000 km of HS track and 4,000 trains; to levitate that lot, will require at least 100,000 tons of NdPr.

We can then add the Tibetan Dams Generator magnets, another 30,000t. This is before we even start thinking off growth in all the magnet demand for Robotics, EV's etc etc. You don't have to be an Einstein to realise that China is going to need at least an additional 200,000t of NdPr over the next ten years. That is equivalent to five Longonjo sized operations! and does not even start to consider Western demand, China Northern's production would have to more than triple to keep up. IMO China is very soon going to have to become a Nett importer,

Now let us consider the true value for all that NdPr, roughly US$2Billion/year at Donald's pricing. That is peanuts in the scheme of things, the Dams alone are budgeted at US$170B! So, at what point would Xi abandon a project simply because a marginal cost becomes inflated? even at US$250/kg the cost would be justified to secure supply to complete a plan of 'National pride/importance'

I think we are going to find that Roskills 2020 price demand predictions were seriously underestimated.
 
I think demand is def going to grow globally. Even if a small fraction of the robotic ndpr predictions (x186 current supply) becomes a reality....that is massive. And china could not keep up with that demand. And they will then restict ex-China supply to supply themselves.

I have been doing some research on magnet manufacturers. And the planned increases in China (who dominates the industry) are massive. And that is just the next 5 years of planned increases. And even that won't be enough.

Its funny though....there are people out there that say there will not be a supply deficit. I really don't understand how they can think this way when all the evidence says the opposite...that demand is exponentially growing.
 
Pensana could be very successful, but IMHO they need to lock in some critical parts of their project. Like binding off take (at least a significant %) and likewise with finance.

The reason I say this, is that they are not procesing to an oxide, only to a concentrate. So their customer market is limited somewhat to customers that are prepared/equiped to process to the oxide and the associated radiation disposal issues.

I say this, however, given they are proceeding construction without off take secured, the people who are financing the construction, but have great comfort that the off take becoming a binding contract is a formality. But as a retail investor, I would prefer to see those binding contracts.
Good morning John, just a small correction, Pensana are not producing a concentrate, they are producing a processed carbonate, and are spending well over 100 million for this part of the process. this is why it is so attractive to RE Elementt, Tsushima Toyota and Solvay. it goes straight into there process for separation into oxides. and there are no radiation issues, certainly not in the exported commodity.
 
Good morning John, just a small correction, Pensana are not producing a concentrate, they are producing a processed carbonate, and are spending well over 100 million for this part of the process. this is why it is so attractive to RE Elementt, Tsushima Toyota and Solvay. it goes straight into there process for separation into oxides. and there are no radiation issues, certainly not in the exported commodity.

Sorry - my point is, that most MREC contains radiation. And that will be removed by the processor (whoever that is).

So I can't see how Pensana MREC product can not have radiation. And if it is removed, where is it stored/disposed?

That is why Ore to Oxide projects are typically more capital intensive and cost more. So how is Pensana doing that for a relatively low capex?

It will be interesting to see if Pensana can move quickly into their Phase 2 - and become an ore to oxide business.
 
Not exactly sure how they will do it, but they stated that Radionuclides and excess Ce will be selectively precipitated out prior to the final product. Which is why they are installing a fully engineered and lined TSF.

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I'm still confused by this......be good to know exactly how they are doing this for so little money.
 
Sorry - my point is, that most MREC contains radiation. And that will be removed by the processor (whoever that is).

So I can't see how Pensana MREC product can not have radiation. And if it is removed, where is it stored/disposed?

That is why Ore to Oxide projects are typically more capital intensive and cost more. So how is Pensana doing that for a relatively low capex?

It will be interesting to see if Pensana can move quickly into their Phase 2 - and become an ore to oxide business.
So it falls below the levels required for transport (Class 7)?
when the planning permission was sought for Saltend, this point was raised, and the response to the planning authority was "There will be no Radionuclides", the consequences of this not being true, would first of all, the raw material being rejected at point of entry, and secondly some very serious legal ramifications
 

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I'm still confused by this......be good to know exactly how they are doing this for so little money.
Sorry but I can't help you there; but after hearing today's report into the excessive costs now associated with over-regulation in all of Australian construction industries, I suspect it is a case of the US & Australia being overpriced compared to Africa.
 
when the planning permission was sought for Saltend, this point was raised, and the response to the planning authority was "There will be no Radionuclides", the consequences of this not being true, would first of all, the raw material being rejected at point of entry, and secondly some very serious legal ramifications
A lesson that Lynas failed to realise since day one. Aston's original BFS for Mt Weld identified this very issue, Rn's have to be dropped out and disposed of at the source. Shipping them to another Country or trying to bury them on the outskirts of Kalgoorlie was never going to be accepted. Now Lynas are being forced to transport their now concentrated rubbish 240km back up the road in specialised/dedicated trucks. It does not appear to have affected their SP though!
 
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