Alkane Resources plugs into global demand for electronics

CHINA'S huge demand for rare earth products used in making electronics could be satisfied thanks to developments by WA-based Alkane Resources.

The company's pilot plant in Dubbo, NSW, was established to produce yttrium and rare earths from a nearby inground resource.

The Dubbo Zirconia Project has successfully produced zirconium and niobium in large quantities and is expanding the markets. Zirconium metal, for example, is in demand for nuclear power requirements.

Alkane today announced that it has recovered samples of even more exotic metals from the plant.

Light rare earths - including samarium and lanthanum - and heavy rare earths - gadolinium, erbium and dysprosium - are in high demand for use in magnets, nickel metal-hydride batteries for hybrid cars, compact fluorescent lights, catalytic convertors for car exhausts, and in glass to lower UV transmission.

Alkane said that while further development was needed to confirm the commercial viability of producing the metals, it expects an upgrade to the pilot plant will see sample products distributed to potential customers in early 2010.

Alkane said the defined resource near Dubbo has a life of more than 200 years.

Mining ore at the rate of 500,000 tonnes a year would produce 7.5 tonnes of zirconia, 1.75 tonnes of niobium, 2.47 tonnes of light-rare earths and 753 tonnes of yttrium-based heavy rare earths.

Alkane is marketing its potential to produce commercial quantities of zirconium to industries including manufacturers of nuclear power stations.

The zirconium metal is used to make tube or fuel rods and reactor vessel construction. The company said there are 436 reactors in use around the world and another 40 being made, about 110 planned and 272 proposed.

Due to the specific characteristics of zirconium metal, no substitution is anticipated and depending on reactor type and size, the average nuclear plans uses 10-45 tonnes of zirconium,'' the company said.

The fuel rods have a life of about five to six years and the zirconium metal cannot be recycled and is ultimately stored with the used fuel.

Demand for nuclear grade zirconium metal is expected to increase dramatically over the next 10 years as the nuclear revival gathers pace.''

Alkane said that when it started the plant, output was expected to be mainly zirconium chemicals. It chose an ore throughput of 200,000 tonnes a year which could satisfy less than 7 per cent of world demand.

Since that time the zirconium market has expanded and a greater throughput is possible,'' it said.

Also, demand for the niobium concentrate and yttrium and rare earth products has increased
dramatically and supports a larger start up capacity.''

Alkane now expects to receive letters of intent from customers which will be incorporated into a feasibility study that could lead to production in late 2011.

Alkane's main operations are in the central west region of NSW