Kazatomprom, Sumitomo rare earth metals JV to reach design capacity in Q1 2014
KOKCHETAU. Oct 22 (Interfax) - SARECO (Summit Atom Rare Earth Company), a joint venture between Kazakhstan's national nuclear company Kazatomprom (51%) and Japan's Sumitomo Corporation (49%), plans to reach design capacity for rare earth metal bulk concentrates in the first quarter of 2014.
Production capacity will total 1,500 tonnes per year, the administration of the Akmola region, where the plant is being built, said in a press release.
The project for pilot production of rare earth metal bulk concentrates and individual compounds includes two more phases: separation (2013-2015) and magnet production (2014-2017), the release said. The overall cost is KZT4.4 billion (about $30 million.
Work is now underway on the first phase, to set up production of bulk concentrates, which involves installation of equipment in the thermal processing division, a raw materials storage facility and overhaul of the hydrometallurgy division.
The project is being carried out on the premises of the Stepnogorsk Mining and Chemical Plant. The raw material will come from the tailings produced by KazAzot, and monazite concentrate that has been in long-term storage at the Ulba Metallurgical Plant.
In 2010 Kazatomprom and Japan's Sumitomo Corporation formed a joint venture, Summit Atom Rare Earth Company (SARECO), to create a vertically integrated company to produce value-added rare-earth metal products. The JV was to deal with export and sale of finished product.
SARECO planned to launch a mining and concentrating plant and hydrometallurgical plant to produce REM bulk concentrates and REM separation into individual metal oxides. The REM production could source rare earth metals in uranium tailings and in situ leaching solutions as well as mineral deposits.