Exclusive Processing Rights at Harts Range: What Risks Lie Ahead for Metallium?

A Breakthrough in Heavy Rare Earth Processing

Metallium Ltd (ASX – MTM) has taken a significant leap forward in the rare earths sector by securing binding exclusive rights to apply its proprietary Flash Joule Heating (FJH) technology to the Harts Range Project in Australia’s Northern Territory. This agreement, struck with New Frontier Minerals Ltd, grants Metallium at least a decade of exclusive processing rights, automatically extending into production phases and binding any future project owners to use the FJH process.

The early testwork results are nothing short of remarkable. Using raw, un-beneficiated ore, Metallium’s FJH process elevated total rare earth oxides (TREO) from a modest 1.7% to an extraordinary 35% in a single, rapid, solvent-free step. Dysprosium (Dy) and terbium (Tb), two of the scarcest and most strategically critical heavy rare earth elements, were enriched by factors of 53 and 21 respectively. This level of upgrade is unprecedented globally for heavy rare earth ores and achieved without conventional flotation, acid leaching, or hydrometallurgical pre-conditioning.

A Disruptive, Low-Risk Business Model

Metallium’s commercial framework is equally innovative. Rather than investing in mining or processing infrastructure, the company will generate revenue through royalties on recovered products and licensing fees for the FJH technology. This “processing-as-a-service” model minimizes capital risk while securing long-term exposure to one of the world’s rarest heavy rare earth deposits.

Importantly, the Harts Range ore’s unusually high heavy rare earth content, estimated at around 31% of heavy rare earth oxides excluding yttrium, rising to 43% post-FJH treatment, sets it apart from many global deposits. This positions Metallium as a potential gatekeeper in the Western supply chain for critical heavy rare earths, a sector currently dominated by China and Myanmar, which supply over 95% of global Dy/Tb and control most refining capacity.

Strategic and Geopolitical Implications

With the United States and its allies facing critical supply vulnerabilities for heavy rare earths essential to advanced defense technologies and high-performance magnets, Metallium’s breakthrough offers a timely alternative. The company’s Texas Technology Campus will play a dual role, continuing its core e-waste processing operations while advancing the qualification of Dy/Tb-rich concentrates for U.S. defense and magnet manufacturers.

Metallium’s Managing Director Michael Walshe highlighted the strategic significance – "To achieve more than a 20-fold TREO upgrade and over 50-fold enrichment of dysprosium from raw ore in a single flash is unprecedented. This reinforces our leadership in building a Western supply chain for the world’s most strategic rare-earth metals."

Next Steps and Market Outlook

Looking ahead, Metallium plans further optimization of the FJH process to enhance recoveries and reduce lower-value rare earth elements. The company aims to produce Dy/Tb-rich “super-concentrate” samples for qualification with U.S. customers by Q3 2026, alongside commissioning its Texas facility for specialty metals recovery and heavy rare earth pilot workflows.

While the Harts Range project remains at an early exploration stage with no defined mineral resource yet, Metallium’s exclusive processing rights and demonstrated beneficiation performance provide a compelling foundation for future commercialisation. The deal also underscores the growing momentum behind Western efforts to diversify and secure critical mineral supply chains amid geopolitical tensions.