Can OD6’s Impurity Removal Breakthrough Secure Global Rare Earth Markets?

OD6 Metals reports significant metallurgical advancements at its Splinter Rock Rare Earth Project, integrating Ion Exchange technology to enhance impurity removal and increase recovery rates. These improvements promise to materially improve project economics and broaden market appeal.

  • Ion Exchange technology reduces iron, aluminium, uranium, and thorium impurities
  • Neodymium and praseodymium recovery reaches approximately 75%
  • Heap leach and nanofiltration processes cut acid consumption and downstream costs
  • Uranium and thorium levels meet stringent specifications, expanding global offtake potential
  • Optioneering Study underway with CPC Engineering and ANSTO to select optimal flowsheet
An image related to Od6 Metals Limited
Image source middle. ©

Innovative Processing Advances at Splinter Rock

OD6 Metals Limited has unveiled promising metallurgical test results from its flagship Splinter Rock Rare Earth Project in Western Australia. Central to these advancements is the successful integration of Ion Exchange (IX) technology, which significantly improves the removal of key impurities such as iron, aluminium, uranium, and thorium. This breakthrough enhances the purity of the rare earth product while simultaneously reducing risks and costs associated with downstream processing.

The project’s rare earth elements (REEs), particularly neodymium (Nd) and praseodymium (Pr), have achieved an impressive recovery rate of around 75% following impurity removal. This marks a substantial step forward in extracting high-value magnet rare earths, critical for applications in clean energy and advanced technologies.

Synergistic Heap Leach and Nanofiltration Processes

Complementing the Ion Exchange circuit, OD6 has refined its heap leach and nanofiltration processes. The heap leach method offers a simplified and cost-effective alternative to traditional tank leaching by eliminating several expensive steps such as thickening and clay washing. Nanofiltration further enhances efficiency by recovering 84.5% of hydrochloric acid for reuse and reducing the volume of liquor processed downstream by 69%, which translates into lower reagent consumption and smaller plant footprint.

These combined innovations are expected to materially improve the project’s capital and operating cost profile, positioning Splinter Rock as a competitive rare earth producer.

Meeting Stringent Purity Standards for Global Markets

One of the standout achievements is the effective removal of uranium and thorium to levels below 0.001 weight percent, far surpassing typical industry thresholds. This reduction not only enhances product safety and transportability but also broadens the potential global offtake markets by meeting stringent customer specifications. The ability to deliver a high-purity Mixed Rare Earth Carbonate (MREC) product is a critical milestone for OD6’s commercial ambitions.

Pathway to Project Development

OD6 is currently collaborating with CPC Engineering and the Australian Nuclear Science and Technology Organisation (ANSTO) on an Optioneering Study to evaluate and select the preferred processing flowsheet. This study will weigh factors such as recovery rates, scalability, cost efficiency, and product quality. The results, expected later this quarter, will guide the next phase of project development and investment decisions.

Further scale-up metallurgical testing is planned, including mini pilot-scale trials and production of MREC samples for offtake discussions. The company’s focus remains on the high-grade Inside Centre Prospect, which hosts an Indicated Resource of 119 million tonnes at 1,632 parts per million total rare earth oxides (TREO).

Strategic Implications and Industry Context

OD6’s advancements come at a time when rare earth supply chains are under intense scrutiny globally, with governments and industries seeking secure and sustainable sources. The company’s innovative approach, combining heap leach, nanofiltration, and ion exchange, could set a new benchmark for cost-effective and environmentally responsible rare earth extraction in Australia.

Managing Director Brett Hazelden highlighted the alignment of these technological improvements with market needs and potential government support, referencing recent industry discussions led by federal officials. This positions Splinter Rock not only as a promising resource but also as a strategic asset within the critical minerals sector.

Bottom Line?

OD6’s metallurgical breakthroughs at Splinter Rock set the stage for a competitive rare earth project, with upcoming studies poised to define its commercial trajectory.

Questions in the middle?

  • Which flowsheet will CPC Engineering select as optimal, and how will it impact project economics?
  • What are the final test results for the Mixed Rare Earth Carbonate product and their implications for offtake agreements?
  • How might potential government support influence the project’s development timeline and funding?