Globe & Mail 09:42 AM EST, 03/02/2021 (MT Newswires) -- Neo Performance Materials Inc. (NEO.TO), which at last look jumped 16.7% on Tuesday, and Energy Fuels Inc. (UUUU), which at last look gained 3% on Tuesday, said overnight Monday that they signed an agreement to produce rare earth products from natural monazite sands.
Under the initiative, Energy Fuels will process the monazite sands into a mixed rare earth carbonate in Utah starting in March or April, for use as feed material for Neo's Silmet rare earth separation plant in Estonia.
Neo will process the rare earth carbonate into separated rare earth materials for use in rare earth permanent magnets and other rare earth-based advanced materials.
Neo said it signed the agreement as it seeks to expand and diversify its source of rare earth feedstock amid increasing demand.
In addition, Energy Fuels is also evaluating the potential to develop U.S. separation capabilities at its White Mesa mill or in a nearby location, as it looks to increase its monazite sand ore supplies.
Energy Fuels will produce its rare earth carbonate from natural monazite sands supplied Chemours Co. under a December 2020 agreement.
Implementation of the initiative is subject to successful pilot-scale operations, execution of definitive agreements, and optimization of the companies' production processes.
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