As an ionic adsorption clay (IAC), Makuutu is rare and considered a highly sought after ‘holy grail of rare earth mineralisation’.
The dominance of the Chinese rare earth industry is underpinned by their ability to produce vast quantities of CREO/HREOs from ionic adsorption clays. IACs have a lower capital hurdle and higher pay ability product which make IACs more valuable sources of REOs with Chinese IAC’s being heavily overmined over the past 30 years, the Chinese have diminished reserves and were forced to implement quotas to prioritise internal supply.
As a long life asset, Makuutu stands to benefit greatly given its low-cost, long-life, and high-margin CREO/HREO product attributes.