Rare Earth Elements as Byproduct of Ilmenite Mining: Atalaya II Project

In the Atalaya II project, Rare Earth Elements (REEs) will be obtained as a valuable byproduct of ilmenite mining. This approach to REE production presents unique economic and operational considerations compared to dedicated REE mining operations.

REEs and Ilmenite Association

Ilmenite (FeTiO3) is primarily mined for its titanium content. However, in some deposits, including the one in the Atalaya II project, REEs are present in associated minerals. This geological association allows for the extraction of REEs alongside the primary ilmenite mining operation.

Economic Considerations

A critical aspect of REE production as a byproduct is its impact on economic viability:

Lower Grade Tolerance: Since REEs are not the primary target, economically viable grades can be lower than in dedicated REE mines. This is because the main operational costs are already covered by the ilmenite production.

Cost Distribution: The costs of extraction and initial processing are shared between ilmenite and REE production, potentially making REE recovery more economical.

Market Flexibility: The dual-product nature of the operation provides some insulation against market fluctuations in either ilmenite or REE prices.

Reduced Capital Expenditure: Utilizing existing mining infrastructure for ilmenite reduces the capital needed specifically for REE extraction.

Production Process

The production process in the Atalaya II project involves both on-site and off-site operations, with careful consideration of environmental regulations:

Extraction (On-site): Ore containing both ilmenite and REE-bearing minerals is mined at the Atalaya II project site.

Initial Processing (On-site): The ore undergoes crushing and grinding, followed by magnetic separation to isolate ilmenite. This process is conducted entirely on-site and does not involve any chemical treatments, aligning with strict European environmental regulations.

REE Recovery (Off-site): The remaining material, containing REE-bearing minerals, is transported to specialized off-site facilities for REE extraction. This step may involve methods like flotation or hydrometallurgical techniques, which are conducted in facilities equipped to manage these processes in compliance with environmental standards.

Refining (Off-site): Further separation and purification of REEs to obtain individual rare earth oxides or metals is also performed off-site. This final step in the value chain is handled by specialized facilities, removing the need for complex chemical processes at the Atalaya project site.

This approach allows the Atalaya II project to focus on environmentally friendly extraction and initial processing methods on-site, while leveraging specialized off-site facilities for the more complex and potentially environmentally sensitive aspects of REE production. By conducting only magnetic separation on-site, the company maintains a simpler operational footprint and adheres to strict European environmental regulations.