Bayan and US Critical Materials Partner to Advance US Rare-Earth Processing Technologies

Strategic Collaboration Targets US Rare-Earth Supply Chain

Bayan Mining and Minerals Ltd (ASX:BMM) has inked a non-binding Memorandum of Understanding with US Critical Materials Corp. to jointly advance rare-earth processing technologies developed by the Colorado School of Mines. The collaboration zeroes in on beneficiation methods tailored to the high-grade bastnaesite and ancylite-hosted mineralisation at USCM’s Sheep Creek Project in Montana, a deposit touted as one of the richest rare earth systems in the United States.

Under this agreement, Bayan leverages its exclusive worldwide licence to four US patented and patent-pending technologies spanning beneficiation, single-stage leaching, and resin-based separation. These technologies, partially funded by US Department of Energy initiatives and tested on Mountain Pass ore from California, aim to simplify flowsheets, boost recovery, and reduce processing costs, key factors in establishing a resilient domestic rare earth supply chain.

US Critical Materials, a private exploration and technology company focused on bolstering US national security and supply chain independence, will collaborate closely with Bayan through a joint technical committee. This team will oversee metallurgical evaluation, recovery optimisation, and flowsheet development to ensure alignment with US regulatory and national security priorities.

Technological Edge and Commercialisation Framework

Bayan’s exclusive licence covers technologies developed at the Kroll Institute for Extractive Metallurgy, including advanced flotation and gravity concentration methods and a single-stage hydrochloric acid leach designed to handle ultra-fine and calcite-bearing bastnaesite ore. Notably, the collaboration focuses on beneficiation technologies for Sheep Creek’s mineralisation, while other patented processes like yttrium upgrading remain reserved for Bayan’s broader commercialisation strategy.

The MoU sets out a framework for pilot and demonstration-scale processing opportunities within the US, downstream processing pathways, and potential commercial arrangements such as royalties, licensing, joint ventures, or spin-outs. USCM has also expressed interest in a potential strategic investment in Bayan, contingent on technical outcomes, due diligence, and regulatory approvals, although no agreements have been finalised.

As Bayan advances exploration at its Desert Star project in California, which is strategically positioned near the Mountain Pass mine, this collaboration complements its broader rare earth ambitions. The company recently reported strong assay results and secured drilling permits, reinforcing its foothold in the US rare earth sector Desert Star surface samples. This partnership with USCM could accelerate Bayan’s technology deployment beyond exploration into processing innovation.

Next Steps and Industry Implications

In the coming months, Bayan and USCM plan to establish the joint technical committee, finalise metallurgical test work programs on Sheep Creek samples, and commence laboratory-scale evaluations of beneficiation performance and flowsheet optimisation. These steps will be critical in validating the technologies’ effectiveness on Sheep Creek mineralisation and shaping commercialisation pathways.

The collaboration aligns with wider US government efforts to reduce reliance on foreign rare earth processing and build a secure domestic supply chain. Bayan’s membership in the US Defense Industrial Base Consortium and its patented yttrium upgrade technology further position the company as a key player in this strategic sector U.S. Defense Industrial Base Consortium. The potential for a US-based pilot or demonstration facility, integrated with national laboratory partnerships, underscores the ambition to move from laboratory innovation to commercial-scale processing.

However, the MoU remains non-binding, with no guarantee of investment or definitive commercial agreements. The collaboration’s success will hinge on metallurgical test results, regulatory approvals, and the evolving geopolitical landscape influencing critical mineral supply chains.