How Will Prospech Unlock Value from Korsnäs’ Historic Rare Earth Stockpile?
Prospech Limited has secured a 500 kg bulk sample from the historic Korsnäs rare earth element stockpile in Finland, initiating metallurgical test work in Finland and Australia to unlock strategic REEs. These exploratory tests aim to establish a viable processing flowsheet for neodymium, praseodymium, and samarium extraction.
- 500 kg bulk sample collected from Korsnäs Lanthanide Concentrate Stockpile
- Metallurgical test work underway in Finland (REMHub consortium) and Australia
- Sample grades approximately 2.55% Total Rare Earth Oxides (TREO)
- Focus on extracting strategic light REEs, neodymium, praseodymium, samarium
- Historical stockpile of ~37,000 tonnes REE concentrate remains from 1958-1972 mining
Historic Stockpile, Modern Potential
Prospech Limited (ASX, PRS) has taken a significant step forward in exploring the value locked within the Korsnäs rare earth element (REE) project in western Finland. The company recently collected a 500-kilogram bulk sample from the Lanthanide Concentrate Stockpile (LnCS), a legacy of mining operations that ceased in 1972. This stockpile, containing approximately 37,000 tonnes of unsold REE concentrate, represents a potentially rich source of critical minerals essential for modern technologies.
The Korsnäs deposit was originally mined for lead, with REEs produced as a by-product. However, the strategic importance of light REEs such as neodymium and praseodymium, key components in permanent magnets, was not fully recognised at the time. Today, these elements are in high demand for electric vehicles, renewable energy, and electronics, positioning Korsnäs as a project of renewed interest.
Dual-Stream Metallurgical Testing
The bulk sample has been split for metallurgical test work in two locations, 200 kg sent to Oulu University in Finland as part of the EU-funded REMHub consortium, and 300 kg dispatched to specialised commercial laboratories in Australia. The testing program is comprehensive, involving flotation, magnetic separation, acid baking, caustic cracking, and selective oxidation to optimise the extraction and purification of REEs.
Initial assays from June 2024 confirmed the high-grade nature of the stockpile material, with Total Rare Earth Oxides (TREO) averaging 2.55% and neodymium plus praseodymium oxide (NdPrO) at 0.79%. These grades are promising for economic extraction, particularly given the focus on strategic light REEs like neodymium, praseodymium, and samarium.
Strategic Positioning in European Critical Minerals
Prospech’s metallurgical work aims to establish a viable processing flowsheet that could unlock value from the Korsnäs stockpile and related sources such as tailings and underlying hard-rock resources. The involvement in the REMHub consortium underscores the project’s alignment with European Union objectives to secure local supply chains for critical minerals, reducing dependence on imports.
While these tests are exploratory and do not yet constitute a development decision or a JORC-compliant resource estimate, they represent a crucial step in validating the project’s potential. The company’s approach reflects a broader trend in the mining sector to reassess legacy assets with modern technology and market demands in mind.
Looking Ahead
Prospech’s ongoing work at Korsnäs will be closely watched by investors and industry observers interested in the evolving European rare earths landscape. The success of these metallurgical programs could pave the way for further resource definition and eventual development, contributing to the continent’s strategic autonomy in critical minerals.
Bottom Line?
Prospech’s Korsnäs metallurgical tests mark a pivotal early step toward unlocking Europe’s rare earth potential, with results to watch closely.
Questions in the middle?
- Will metallurgical test results confirm economically viable extraction methods?
- Can the historic stockpile be classified as a JORC-compliant resource in the future?
- How will EU funding and strategic priorities influence Prospech’s project development timeline?
