Energy Fuels Inc (NYSE:UUUU) (TSE:EFR) and Hyperion Metals Limited (ASX:HYM) have announced the execution of a non-binding memorandum of understanding (MOU) that will supply Energy Fuels with natural monazite sands from Hyperion's Titan Project in Tennessee.
Energy Fuels plans to produce mixed rare earth element (REE) products from processing the monazite at its White Mesa Mill in Utah, the company said.
Hyperion's Titan Project covers a large area of heavy mineral sands properties in Tennessee prospective for titanium, zircon, monazite and other valuable minerals, such as high-grade silica sand and other refractory minerals. The project saw significant historic exploration from 1960 to 1990 by DuPont, BHP and others, and it is strategically located close to significant manufacturing capacity. Hyperion believes it to have a significant logistical advantage over current US supplies of imported titanium feedstock.
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Under the MOU, the parties have agreed to negotiate a definitive sales agreement for the supply of Monazite. In addition, subject to Hyperion supplying Energy Fuels with a sufficient quantity of monazite from the Titan Project within a reasonable period of time, Hyperion and Energy Fuels will evaluate entering into a joint venture or other similar arrangement designed to create a sustainable and integrated US rare earth supply chain.
Under such an arrangement, monazite would be supplied from The Chemours Company’s (NYSE:CC) US projects, the Titan Project, and potentially other US and international mines, the company said, with the monazite to be processed and separated into value-added rare earth products at the White Mesa Mill.
"Energy Fuels, along with Chemours and Neo, are creating a new US-Europe rare earth supply chain,” Energy Fields CEO Mark Chalmers said in a statement. “For this initiative to achieve its full potential, we are actively seeking new, ethically-produced sources of monazite, with sources from the US being our first priority. Therefore, we are excited to work with Hyperion to secure additional sources of monazite for processing at the White Mesa Mill.”
Hyperion is nearing completion of a three-phase drilling and bulk sampling test work program at the Titan Project, the company said. Results to date have successfully confirmed the high grade and significant thickness of mineralization over approximately a 3.6 kilometer strike length.
“Through their association with Piedmont Lithium's project in North Carolina, members of the Hyperion team have demonstrated to us that they have the know-how and resources to bring US critical mineral projects into production,” Chalmers added. “We look forward to working with the Hyperion team and potentially seeing our relationship grow through their participation in a fully-integrated, low cost US rare earth supply chain in the future.”
In addition to producing mixed REE carbonate, Energy Fuels is also evaluating the potential to develop US separation, metals, alloys, and other downstream REE capabilities at the White Mesa Mill or nearby. The company hopes to increase its supply of monazite feed to approximately 15,000 tons per year for this initiative.
"We are excited to progress the potential supply to Energy Fuels of American monazite for its rare earths supply chain right here in the USA, bringing back sustainable American industry and skilled jobs for generations,” Hyperion managing director Anastasios Arima said. “The import dependence of the US for key critical minerals, including rare earths and titanium, presents a huge threat to the security of key domestic industries, including defense, space, aerospace, renewables and electric vehicles.”
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