Pele Mountain Resources and Chinese company Sheng Kang Ning (SKN) have signed a memorandum of understanding (MOU) to develop a rare earth metals processing facility in Elliot Lake.
Pele and SKN, a mining investment company, are aiming to jointly develop a monazite-processing firm on the site of Pele’s proposed Eco Ridge Mine Rare Earth and Uranium Project in Elliot Lake. Monazite, which has the consistency of sand, contains rare earth metals, which are used in the manufacture of high-tech components.
Under the terms of the agreement, the joint venture will be 50.1 per cent owned by SKN and 49.9 per cent owned by Pele. SKN will use its processing technologies for the JV to process monazite concentrate, and Pele will lease a portion of its lands to the JV for construction of the project.
“We are delighted to enter into this MOU with SKN,” Pele president Al Shefsky said in a news release. “The MOU represents a strong endorsement for Pele’s monazite-processing strategy, and is an important first step to bringing the experience and expertise of a proven global leader in rare earth processing to our project in Elliot Lake, Ontario.”
The MOU will expire on Sept. 30.
SKN is a 90 per cent owned subsidiary of Shenghe Resources Holding Co. Ltd., which is described as “global leaders in rare earth mining, processing and downstream chain.” The company has proprietary technologies to process rare earth metals in an environmentally sustainable manner at low cost, according to the release.
