A deal with a Chinese company to process monazite in Elliot Lake has fallen through for Pele Mountain Resources.
Pele had until Sept. 30 to get support from the Chinese government for its proposed joint venture with Sheng Kang Ning (SKN) Mining Investment Co. Ltd., which would design, build and operate a monazite-processing facility in Elliot Lake. Monazite is a crystalline mineral that contains rare earth elements, which are used in the manufacture of high-tech products like smartphones.
Government approval never came, and Pele is now returning to the drawing board.
In a news release, Pele president Al Shefsky said the company will continue to explore a potential working relationship with SKN on a “non-exclusive basis” and will begin discussions with other interested parties.
Shefsky said Pele has identified multiple monazite suppliers, figured out transportation logistics, started an economic model based on metallurgical test work, and started discussions with government about regulatory requirements.
The project is presently too costly to bring to operation, Shefsky said, but he remains optimistic about its future.
“Under current circumstances, monazite processing presents a compelling opportunity to achieve timely, low-cost, rare earth production in Canada,” he said. “We continue to confidently advance our vision of a rare earth processing centre in Elliot Lake in co-operation with qualified partners.”
Pele Mountain owns the Eco Ridge Mine Rare Earth and Uranium Project in Elliot Lake.
