Sumitomo Corp Starts Rare Earth Collection Business in Kazakhstan

Sumitomo Corporation announced on Wednesday the firm agreed with Kazatomprom, Kazakh national atomic company, in cooperative business to collect rare earths from uranium ore residue. The companies will collect neodymium and dysprosium, used for motors inside electric vehicles, from uranium ore residue as a new rare earth resource. Sumitomo Corp and Kazatomprom have already cooperated in uranium mine development.

The companies plan to establish a joint venture company within 2009. The JV utilizes existent facilities in Kazatomprom’s Ulba plant to collect rare earth composite from uranium ore residue. The JV will produce rare earth concentrate at 3,000 tonnes per annum in 2010 while start integrated production of high-value-added rare earth products in future.

There is a plenty of uranium ore residue in Kazakhstan. The companies verified rare earth composite, which contains neodymium and dysprosium at a high rate, in residue according to an initial research. Dysprosium production is now regulated in South China.

Production lead time is shorter than the case of new rare earth mine development. Additionally, environmental burden and productive cost are lower. Japan Oil, Gas & Metals National Corporation (JOGMEC) also gives technical support to collect rare earths.