Canada Rare Earth Becomes Primary International Supplier of Monazite with Chinese Firm
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Canada Rare Earth Corporation has signed a significant agreement with Yongzhou Xiangjiang Rare Earth Resource Co. which is fully licensed by Chinese environmental law to import and process rare earth monazite concentrate. Pursuant to the mutually beneficial agreement, Canada Rare Earth has the opportunity to become the primary international supplier of monazite concentrate to the refinery.
The company’s senior management team visited the refinery in China on multiple occasions to conduct due diligence. The investigations confirmed that the refinery has been fully operational for over fifteen years during which time it has consistently been highly regarded for its ability to process monazite concentrate and separate the concentrate into the complete spectrum of rare earth elements. All environmental standards established by Chinese law and international standards have continuously been met or exceeded. The refinery is a technically advanced and automated facility that benefits from numerous patents and sizeable investments in environmental systems, controls and testing mechanisms.
“We are developing a dependable base of multiple sources of rare earth concentrate supply including the recently announced multi-year purchase agreement in South America. This and other sources are intended to generate trading profits in the near, medium and longer term as well as providing consistent, reliable sources of concentrate for the refineries we are in the process of permitting, planning or building,” said Peter Shearing, chief operating officer of Canada Rare Earth.
The arrangement provides Xiangjiang Rare Earth with solid international sourcing of monazite through a close ally and provides Canada Rare Earth with direct access to the largest market involving rare earth products via a strategic partner. Under the terms of the agreement, Canada Rare Earth will represent the refinery for all purchases of rare earth monazite concentrate from third party sources outside of China for an initial period of five years with the option to extend for additional terms so long as both parties are satisfied with the commercial and operational benefits of the arrangement. In the event Canada Rare Earth is unable to source monazite on commercially acceptable terms there will be no breach of underling terms of the agreement or the occurrence of legal or financial obligations.
About Canada Rare Earth
Canada Rare Earth is developing an international integrated business within the global rare earth industry. Their key focus is to generate revenues and positive cash flow from a variety of profit centres in the rare earth production and sales chain by sourcing, adding value and selling rare earths in all stages and forms. They are in the process of establishing their own mining, concentrating and refinery capabilities in addition to working with affiliated and third party organizations.
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