Exclusive Processing Rights Raise Stakes for New Frontier’s Rare Earth Ambitions

A Game-Changing Partnership in Rare Earths

New Frontier Minerals Limited (ASX, NFM) has announced a binding commercial framework agreement with Metallium Ltd (ASX, MTM) that could redefine the processing and supply of heavy rare earth elements (HREE) from its Harts Range Project in Australia’s Northern Territory. This exclusive deal grants Metallium global rights for at least ten years to apply its proprietary Flash Joule Heating (FJH) technology to Harts Range ore, unlocking a novel beneficiation pathway that dramatically upgrades the ore’s rare earth content.

At the heart of this collaboration is Metallium’s FJH process, a rapid, solvent-free, single-step reaction that has delivered exceptional results on a 25kg bulk sample of unprocessed Harts Range ore. The total rare earth oxide (TREO) content surged from a modest 1.7% to an impressive 35%, representing a 20-fold upgrade. Even more striking are the enrichments of critical heavy rare earths, dysprosium (Dy₂O₃) increased 53 times to over 10%, and terbium (Tb₄O₇) rose 21 times to 0.64%. These elements are vital for high-performance magnets used in defense and advanced technology sectors.

Strategic Alignment with US Defense and Magnet Markets

The timing and strategic focus of this partnership are notable. Metallium plans to produce Dy/Tb-rich “super-concentrate” samples in 2026 for qualification with prospective US magnet and defense customers, aiming to secure a commercial term-sheet before year-end. This aligns with growing geopolitical and market demand for Western-sourced heavy rare earths, especially given the US government's push to secure critical mineral supply chains.

New Frontier’s Chairman, Gerrard Hall, highlighted the significance of the agreement, calling it a “value creating, game changing event” that validates the Harts Range Project’s potential. The exclusive 10-year framework, with automatic extension into production, offers New Frontier a clear pathway to commercialisation without the traditional complexities of beneficiation involving flotation or acid leaching.

Innovative Technology and Commercial Model

Metallium’s FJH technology stands out for its simplicity and efficiency, removing impurities such as iron, silica, and thorium completely from the raw ore. The process operates without the need for traditional chemical pre-conditioning, potentially reducing environmental impact and processing costs. The agreement also includes a royalty structure and processing margin for Metallium, with provisions for New Frontier to buy back a portion of the royalty, balancing risk and reward.

Metallium’s Texas Technology Campus will serve as the hub for scaling up the FJH reactor and refining the process to meet customer qualification standards. This dual-purpose facility also processes e-waste and specialty metals, positioning Metallium as a key gatekeeper in Western heavy rare earth refining.

Next Steps and Market Implications

Looking ahead, New Frontier is prioritising an upcoming drilling campaign to better define the extent of heavy rare earth mineralisation at Harts Range. Concurrently, close collaboration with Metallium aims to accelerate the commercialisation strategy. The successful scale-up and customer qualification of the FJH-processed concentrates could unlock significant shareholder value and position New Frontier as a critical supplier in the evolving rare earths market.

This partnership underscores the increasing importance of innovative processing technologies and strategic alliances in securing supply chains for critical minerals amid global geopolitical shifts.