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A Report by

The Academy of Sciences Malaysia &

The National Professors’ Council

RARE EARTH INDUSTRIES: MOVING MALAYSIA’S GREEN

ECONOMY FORWARD

Rare Earth Industries: Moving Malaysia’s Green Economy Forward

A Report by:

The Academy of Sciences Malaysia &

The National Professors’ Council

AUGUST 2011

©Akademi Sains Malaysia 2011

All rights reserved. No part of this publication may be produced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior permission of the Copyright owner.

The views and opinions expressed or implied in this publication are those of the author and do not necessarily reflect the views of the Academy of Sciences Malaysia.

Perpustakaan Negara Malaysia Cataloguing-in-Publication Data

Rare earth industries : moving Malaysia’s green economy forward / a report by The Academy of Sciences Malaysia & The National Professors’ Council Includes bibliographical references ISBN 978-983-9445-69-5 1. Rare earth industries--Malaysia. 2. Rare earth industries-- Environmental aspects--Malaysia. 3. Rare earth industries-- Governmental policy--Malaysia. I. Akademi Sains Malaysia. II. Majlis Profesor Negara. 338.4754641


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Contents Contents ................................................................................................................................ i Preface from President, ASM and Secretary, MPN.............................................................. v Preface from Chief Spokesman, ASM-MPNWorking Group............................................... vii Executive Summary .............................................................................................................. viii Preamble ................................................................................................................................ 1

Chapter 1 : Global Scenario & Trends 1.1 Introduction .......................................................................................................................... 2 1.2 Climate Change : Evidence & Consequences ....................................................................... 3 1.3 The Green Economy and Rare Earths …………….............................................................. 9 1.4 Green Economy Vulnerable to Rare Earth Minerals Shortages .......................................... 9 References …………………………………………………................................................ 12

Chapter 2: Rare Earth Industries: Upstream Business 2.1 What are Rare Earths? .......................................................................................................... 13 2.2 What are Their Chemical Properties? ………………………............................................... 13 2.3 What are the Unique Properties? ……………………………............................................. 14 2.4 Geochemistry ……………………………………………………………............................ 15 2.5 Rare Earth Minerals ………………………………………………...................................... 15 2.5.1 Bastnasite ……………………………………………………................................. 18 2.5.2 Monazite ………………………………………………………............................... 18 2.5.3 Xenotime………………….………………………………...................................... 19 2.6 Rare Earth Mineral-Bearing Rocks/Placers ......................................................................... 19 2.6.1 Carbonatites ……………………………………………........................................... 19 2.6.2 Peralkaline Granitoids .............................................................................................. 20 2.6.3 Placer Deposits ......................................................................................................... 20 2.7 Rare Earth Supply and Demand ......................................................................................... 20 2.8 Mining and Processing ......................................................................................................... 22 2.8.1 Mining ...................................................................................................................... 23 2.8.2 Miling ....................................................................................................................... 23 2.8.3 Separation of the Rare Earth Minerals ..................................................................... 23 2.8.4 Processing ................................................................................................................. 24 2.9 Rare Earth Elements Separation ………………………………........................................... 24 2.10 Safety and Health Risks Related To Rare Earth Production Activities................................ 25 2.10.1 Impact of Rare Earth Processing on Occupational Safety and Health .................... 25 2.10.2 Impact of Rare Earth Processing on the Public Adjecent to the Plants ................... 26 2.10.3 Impact of Rare Earth Processing Residues and Wastes ......................................... 27 2.10.4 Safety and Health during Trasportation .................................................................. 29 2.11 Major Risks in Rare Earth Minerals Processing …............................................................... 29


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2.12 Emission Standards of Pollutants from Rare Earth Industries ………………………......... 30 2.13 Waste Storage, Management, Treatment and Decommissioning.......................................... 31 2.14 Recycling of Rare Earth Metals ........................................................................................... 31 2.15 Conclusions ……………………………………………………………….......................... 32 References ……………………………………………………............................................ 33

Chapter 3: Rare Earth Industries: Downstream Business

3.1 Introduction ......................................................................................................................... 38 3.2 Rare Earth Usage in High-tech Industries ........................................................................... 38 3.3 Major Applications of Rare Earth Elements ........................................................................ 41 3.3.1 Magnets ................................................................................................................... 41 3.3.2 Electric and Hybrid Electric Vehicles ..................................................................... 42 3.3.3 Wind Turbines ......................................................................................................... 42 3.3.4 Hard Disks and Electronic Components with Nd-magnets ..................................... 43 3.3.5 Phosphors and Luminescence .................................................................................. 43 3.3.6 Metal Alloys/Batteries ............................................................................................. 44 3.3.7 Ni-MH Batteries ...................................................................................................... 45 3.3.8 Catalysts ................................................................................................................... 45 3.3.9 Glass, Polishing and Ceramics ................................................................................ 46 3.3.10 Others ....................................................................................................................... 51 3.4 Rare Earth Elements Outlook .............................................................................................. 51 References ........................................................................................................................... 52

Chapter 4: Rare Earth Industries: Strategies For Malaysia 4.1 Background .......................................................................................................................... 54 4.2 Rare Earths in Renewable Energy And Microelectronics ................................................... 54 4.3 Business Opportunities in Rare Earths ................................................................................ 55 4.4 Strategies for Malaysia: Development of Indigenous Rare Earth Industries....................... 55


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List of Figures Figure 1.1 Physical Effects of Climate Change ................................................................ 3 Figure 1.2 Characteristics of Stabilization Scenarios ....................................................... 4 Figure 1.3 Impacts of Mitigation on GDP Growth ........................................................... 5 Figure 1.4 Carbon Dioxide Emissions of Selected Countries and Their GDPs ............... 6 Figure 1.5 World Primary Energy Supplies 1850 – 1997

................................................. 7

Figure 1.6 The short- and medium-term criticality of supply risk for a number of rare earth minerals that are important to clean energy technologies ......................

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Figure 2.1 The Lanthanides .............................................................................................. 13 Figure 2.2 The Main Process Steps In REE Mining And Beneficiation .......................... 23 Figure 2.3 Block Flow Diagram: Concentration & Cracking Separation ........................ 37 Figure 3.1 Global Demands of Rare Earths by Volume From 2006 To 2008 .................. 39 Figure 3.2 Global Applications of Rare Earth Elements (Compiled By Öko-Institut) .... 40 Figure 3.3 Global Demands of Rare Earths In Terms Of Economic Value In 2008 ........ 41 Figure 3.4 Global Wind Power Capacities in June 2010 .................................................. 42 Figure 3.5 Newly Installed Wind Power Capacity in the First Half Of 2010 .................. 43

List of Tables

Table 2.1 Some Major Rare Earth Minerals and Their Elements ……………………… 16 Table 2.2 Rare Earth Elements in Xenotime & Monazite Samples from Perak .............. 17 Table 2.3 World Production & Reserve of REE .............................................................. 21 Table 2.4 World Rare Earth Reverse ............................................................................... 22 Table 2.5 Extraction Process............................................................................................. 35 Table 2.6 Tenorm Residues Accumulated in Malaysia up till 2009 ................................ 27 Table 2.7 Estimated Effective Dose Rates (Msv Y-1) And Excess Cancer Risks For

Public Living On Tenorm Residue’s................................................................

28 Table 2.8 Residues Generated By Lynas, Gebeng, Pahang.............................................. 30 Table 2.9 Thoria And Synthetic Gypsum Residues………….......................................... 30 Table 3.1 United State Usage (2008 data) ....................................................................... 39 Table 3.2 Overview of Main Applications in the Group “Glass, Polishing and

Ceramics”..........................................................................................................

47 Table 3.3 Overview of Main Applications in the Group “Others” .................................. 51

http://www.geology.com/�


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List of Plates Plate 1 Rare Earth Usage in Advanced Materials ....................................................... 48 Plate 2 Rare Earth Usage in Modern Industries .......................................................... 48 Plate 3 Rare Earth Usage in Consumer Electronics .................................................... 49 Plate 4 Rare Earth Usage in Green Technology .......................................................... 49 Plate 5 Rare Earth Usage in Green Energy, Electronics, Defence and Mobile

Communications .............................................................................................. 50

Plate 6 Rare Earth Usage in Defence .......................................................................... 50

Appendices

Appendix 1 IAEA Report ................................................................................................ 58 Appendix 2 Academy Of Sciences Malaysia ................................................................... 61 Appendix 3 Majlis Profesor Negara (MPN) / National Professors’ Council.................... 62 Appendix 4 Working Group Members and Report Authors ............................................ 63


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PREFACE

When it was reported that the Australian company, Lynas Corporation, was proposing to establish a rare-earth mineral processing plant in Gebeng, Kuantan, with ore imported from its mine in Australia, there were many objections from Malaysians as to the management of the radioactive waste. The objections prompted the Malaysian Government to invite the International Atomic Energy Agency (IAEA) to conduct an independent Study to evaluate the risks. IAEA undertook the evaluation and produced a report on the proposed plant. The Academy of Sciences Malaysia (ASM), an independent science and technology “think-tank”, and the National Professors Council (NPC), a body of more than 1,500 professors from the public and private universities, decided that both organisations could jointly study the rare earths issue holistically and comprehensively towards producing a report for the Government’s consideration. We approached the issue from the view-point that, in the subject of rare earths, there was much science, engineering and technology that would be involved in their processing and development. ASM and NPC therefore initiated a comprehensive Study on rare earth minerals, the rare earth industries (both upstream and downstream) and their potential contribution to the Malaysian economy. As far as risks and public safety is concerned we concur with the findings of the IAEA Report. Rare earths elements have found applications in high technology and in green technology which is important to the development of Green Economy in Malaysia. The country’s involvement in high technology is one of the required ingredients to become a high-income nation. The report will definitely create awareness and interest in the rare earths industry. As Malaysia is blessed with mineral resources, it is timely to revisit our mining industry to embark on strategic elements used in high technology, such as rare earths, thorium, uranium and others. MPN emphasises its continual support in research and development on rare earths industry specifically and on other high technology industry generally. The Study was undertaken by a Working Group, comprised ASM Fellows, NPC Professors and others, which was charged to determine the economic potential of the Rare Earths Industry and to assess their strategic importance to enhancing the green economy agenda of the nation. This has been an enriching experience for all of us and hope that this would be the template for future cooperation of scientific professionals, academia and technologists in this country in trying to resolve challenges and issues impacting the nation from the S&T point of view. This Study Report, entitled “Rare Earths Industries: Moving Malaysia's Green Economy Forward” is the culmination of the Working Group’s efforts and is yet another important


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deliverable of the Academy of Sciences Malaysia. We are confident that the findings contained therein would lead to taking concrete steps to developing potential rare earth industries, both in the upstream and downstream sectors, in Malaysia towards realizing the nation’s green technology agenda as a green growth area.

DATO’ DR. SAMSUDIN TUGIMAN PROF. DR. RADUAN BIN CHE ROSE SECRETARY GENERAL SECRETARY ACADEMY OF SCIENCES MALAYSIA MAJLIS PROFESOR NEGARA


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PREFACE

The greatest risk facing humankind is global warming due to climate change. There will be no habitable earth for our future generations if the adverse effects of global warming are not mitigated starting now. Science, engineering and technology are able and ready. What is lacking is collective global political will.

One of the most important drivers in propelling green technologies and economies to mitigate global warming is rare earths. Our study reaffirms the well known fact that rare earths are strategic in all high technology and low carbon industries like aerospace, consumer electronics, medical, military, automotive, renewable wind and solar energy and telecommunications etc.

Our study also emphasizes that the mining and processing of rare earths do pose certain risks to health, safety and the environment. There are available technologies and systems to manage such risks. However, it is crucial that up to date legislation, monitoring, surveillance and enforcement are vigorously pursued throughout the life of all such rare earths facilities. Currently China controls over 95 % of global rare earth supply, fuelling global concern on its possible adverse consequences on the development of green technologies. The Lynas Advance Material Plant in Gebeng, Pahang is the only alternative supply source in the short term. Malaysia is therefore strategically placed to develop her green technology industries, thus contributing to low carbon economies throughout the world and helping to assure a sustainable earth for future generations.

ACADEMICIAN DATO’ IR. LEE YEE CHEONG F.A.Sc.

CHIEF SPOKESMAN, ASM-MPN WORKING GROUP


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Executive Summary

Introduction There is a famous saying, “Where there is risk, there is opportunity”. Rare earths present both health and environmental risks as well as potential economic opportunities. However, the risks are manageable thanks to improved technologies and a better understanding of the implications on health and the environment. This explains why there is a rush by many countries to reopen old mines and increase investment in the production of rare earths concentrate and their high value downstream products. Why is there such a scramble to risk money on rare earths? What have ignited global demand? Where are the opportunities? How are the risks associated with rare earths managed? Can Malaysia benefit from this new growth industry? What should be our strategies? This report, produced by the joint Working Group of the Academy of Sciences Malaysia (ASM) and the Majlis Profesor Negara (MPN), discusses the science of rare earths and their business prospects; and proposes some strategic directions for Malaysia. The analysis is based on information culled from various secondary sources as well as the group’s engagement with experts from the Rare Earths Society of China. Why Rare Earths? Evidently, many factors contribute to the rush to invest in the unprecedented revival of rare earths. One major reason has to do with the rapidly growing world demand. The other reason relates to the attractive price of rare earths which is projected to stay strong in the coming years. This is because supply is predicted to have difficulty keeping pace with demand. Experts believe a major driver of global rare earths demand is the forecasted expansion in the green economy. Climate change is a major driver of the green economy. With climate change, there is concern that the uncontrolled emission of the greenhouse gases, especially carbon dioxide, can lead to catastrophic consequences for the world. This has been documented in countless studies and reports. Another important driver of the green economy is the growing shortfall in many resources. The world is now experiencing declines in key resources to meet a growing global demand. With more than 6 billion people now in the world and growing, the pressure exerted on global resources including energy, water and food is a major concern. Recent demand surge in China and India has dented the supply position of major world resources.


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The much quoted Stern Report from the UK has warned that, unless immediate steps are taken to reduce greenhouse gas emissions, it may be a costly exercise to undertake the corrections later. Since energy use, especially fossil fuels, is a major contributor to climate change, greener options are being sought. Add to that the fact that the fossil energy resources of the world are declining, the need to seek alternatives becomes even more urgent. One option is to change to renewable energy sources. These include such potentials as solar, wind and biomass. Rare earths have somehow become a critical feature of the technologies in such renewables. Another option is to improve the efficient use of energy in transport, buildings and all the other energy intensive industries. Again the technologies in energy efficiency rely a lot on the use of rare earths. These include applications in energy efficient lighting, new and more reliable energy storage batteries as well as more efficient energy distribution mechanism. The growing demand for more efficient communication systems, not only in the world of business but also in defence and the military, is another significant driver of the global demand for rare earths. Mobility and miniaturisation, which feature prominently in the current specifications for telecommunications equipments, rely a lot on the deployment of powerful and efficient magnetic technology. And rare earths have become a much sought after material in the latest magnets used in mobile phones, defence equipments and computer hardwares. With the rise in the global investments in smart cities and intelligent communities, the demand for such communication products is destined to witness equally prolific expansion. This would inadvertently translate into a rising demand for rare earths. Rare Earth Business The value chain of the rare earths business involves mining, extraction, processing, refining and the manufacture of an extensive range of downstream products which find wide applications in such industries including aerospace, consumer electronics, medical, military, automotive, renewable wind and solar energy and telecommunications. In fact the entire gamut of the high-tech industries depends on a sustainable supply of rare earths elements. The explosive demand in mobile phones is an excellent illustration of the massive potential that the rare earths business offers. In a matter of less than 20 years, the number of cell phones worldwide has reached a staggering 5 billion. Soon, going by the report of their growth in sales, the world demand for cell phones may even exceed the global population! Admittedly, the rare earths business does pose certain risks. Top among the risks are the health and safety risks. The mining, extraction and refining of rare earths produce residues and wastes which carry health and safety risks. The residues from the extraction and refining are radioactive, while their effluent waste streams do pose pollution risks to the receiving rivers and waterways. But, as clearly elaborated in a recent report by IAEA experts, there are technologies and systems available to efficiently mitigate such risks. The risks are


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manageable. However, it is crucial that the risk and waste management procedures are strictly followed and adhered to. This is where effective monitoring and surveillance throughout the life of all such rare earths facilities is crucial. Fortunately, Malaysia’s regulatory standards on rare earths follow international standards. In some areas, Malaysia’s regulatory regime is even more stringent than the international guidelines. Rare Earth Opportunities for Malaysia Evidently, many reports cite Malaysia as having reasonably substantial amounts of rare earths elements. In fact, based on the rare earths found in the residual tin deposits alone, Malaysia has about 30,000 tonnes. This does not take into account unmapped deposits which experts believe may offer more tonnages of rare earths. Brazil which is reported to have about 48,000 tonnes has announced plans to invest agressively in the rare earths business. China has on record the largest reserves with about 36 million tonnes. This explains why China has invested heavily in the entire value chain of the rare earths business. China’s committed investment in rare earths started many years ago when the country’s foremost leaders proclaimed the strategic position of rare earths in the world economy. That forecast is now a reality where the rise in the green high-tech economy is seen driving global demand for rare earths in a big way. Malaysia needs to discover and venture into new economic growth areas. This will help fuel the country’s drive to achieve a high income status by 2020 as articulated in the New Economic Model (NEM) and the many supporting Economic Transformation Plans that the Government has recently launched. Rare earths may be the new growth area for Malaysia. However, the business opportunities should not just be confined to the mining, extraction and production of rare earths elements alone if Malaysia is to maximise benefits from this industry. The industry’s gold mine is in the downstream products. This is also the sector that China wants to expand. Japan which now controls about 50% of the global market for downstream rare earths-based high-tech components is desperately looking for partners to grow their stake in the business. Malaysia needs to embark on the right strategies in order to build the rare earths industry in the country.What are the strategies? Rare Earth Strategies for Malaysia Malaysia can take pride in the fact that the country has an illustrious history in the mining business. The country was at one time a major player in tin and iron ore. In fact Malaysia was a major contributor to the world tin market. It was only in recent years that mining has taken a back seat to agriculture and manufacturing. Most of the country’s expertise in mining either moved out into other sectors or joined the flourishing petroleum business. Any move to venture into rare earths would not be difficult since mining is not entirely alien to the country. It will be a revival of the mining business. And with the tin market now looking better thanks


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Preamble Malaysia is committed to a low carbon economy. This was reaffirmed by the Prime Minister at the 2009 Copenhagen Summit when he announced Malaysia’s commitment to reduce the country’s carbon intensity by 40%. The promise was made on the understanding that there will be financial and technological support from the global community. The pursuit of green technologies is an important dimension of Malaysia’s development agenda. The government has since raised green technology to be a full ministerial portfolio. Despite the inconclusiveness of Copenhagen, Malaysia remains committed to fulfill her 40% reduction target. The Ministry of Natural Resources and Environment Malaysia is conducting a detailed study entitled “Long Term Roadmap on the 40% Reduction in Carbon Intensity, Adaptation and Technology Needs Assessment in Malaysia”. The Academy of Sciences Malaysia (ASM) has provided key inputs to the formulation of the National Green Technology Policy. ASM’s continued engagement with green technology related issues has uncovered the critical importance of Rare Earth Elements (REE). Together with the National Professors’ Council (NPC) ASM has formed a Working Group on the Rare Earths to assess their potential and strategic importance to the Nation. As China produces and supplies some 97% of REEs, the ASM/NPC Working Group visited the Chinese Society for Rare Earths (CSRE) in Beijing to be updated on the latest developments in REE mining and processing, including the R&D in the health, safety and environmental aspects of the RE industry from mining, processing and downstream commercialisation. The ASM/NPC team was informed of China’s impressive Government-Industry-Academia partnership to maintain China’s predominant position in RE industry. There is plan for CSRE to sign a MOU with ASM to enhance collaboration in RE science. The recent public concern over the Lynas RE project in Gebeng has motivated the Working Group to produce a Framework Report which discusses the science behind RE. The report would shed more light on the risks and potential of the RE industry. This would provide useful initial guidance if Malaysia is to venture in RE. ASM/NPC stands ready to be the bridge for government/industry/academia/civil society organisations partnership to provide better understanding of the RE industry.


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Chapter 1: Global Scenario & Trends 1.1 Introduction

The 21st century brings with it a number of disturbing challenges. They may even threaten to disrupt world order. Many agree the most critical and urgent challenge of all confronting human kind today is climate change. Global warming has reached a level which can trigger drastic shifts in world weather. There is convincing evidence to show that global warming is significantly attributed to man’s own activities. If man is responsible for the warming of the planet, then only man can help stop global warming. Only man can reverse climate change.

Climate change has the power to literally destruct the world. The adverse effects of global climate change are increasingly evident from the frequency and ferocity of natural disasters like the recent severe drought and flood in Queensland, Australia; the prolonged drought in East Africa; the destructive typhoon Nargis in Myanmar; the terrifying hurricane Katrina which brought New Orleans to its knees; the disastrous Mississippi flood and killer cyclones in USA and the out of season drought and flood in the Yangtze river basin. The list does not end there.

Dr. R. K. Pachauri, Chairman of the Intergovernmental Panel on Climate Change (IPCC), in his lecture on 28 April 2011 at UNITEN, entitled “Fukushima, Energy and Climate Change” reaffirmed that the warming of the earth’s climate system is unequivocal (Figure 1.1). That climate change is man’s common enemy is no longer in doubt. This is the reason why many see climate change as the single most important driver of the expanding global interest in green technology and a low carbon economy.


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FIGURE 1.1 PHYSICAL EFFECTS OF CLIMATE CHANGE

1.2 Climate Change: Evidence & Consequence The IPCC, through its global network of experts, has provided conclusive data and evidence that global warming is a consequence of human activities. The warming is accelerated by the excessive emission of greenhouse gases specifically carbon dioxide. A major culprit is the burning of fossil fuels for energy. The IPCC has cautioned that continued emissions would lead to further warming of 1.1ºC to 6.4ºC over the 21st century (best estimates: 1.8ºC - 4ºC). However, if urgent actions are taken by the global community to arrest carbon emissions, IPPC predicts the following post stabilisation scenarios (Figure 1.2):


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FIGURE 1.2 CHARACTERISTICS OF STABILIZATION SCENARIOS

The most optimistic scenario would see carbon dioxide emission peak and stabilise at 445-490 ppm CO2-eq in 2015 with global mean temperature rise of 2.0-2.4ºC and global sea water rise of 0.4-1.4 metres.

Even so, coastal erosion and the inundation of coastal lowlands will be severely felt as sea level continues to rise, flooding the homes of millions of people living in low lying areas. The melting glaciers will further exacerbate flooding.

He cited the following consequences:

• In India, 1.0 metre sea-level rise would inundate 5,763 sq. kilometres of land area; (Gujarat, Maharashtra, West Bengal are among the vulnerable states);

• There will be significant losses of coastal ecosystems, adversely affecting the aquaculture industry;

• The melting of the glacier is projected to increase flooding, rock avalanches and affect water resources within the next 2 to 3 decades;


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• The salinity of groundwater especially along the coast will increase, due to increases in sea level and over-exploitation;

• In India, gross per capita water availability will decline from 1820 cubic metres/yr in 2001 to 1140 cubic metres/yr in 2050.

• Food security will also be adversely impacted: • Water stress at low latitudes means losses of productivity for both rain-fed and irrigated

agriculture; • Possible yield reduction in agriculture:

50% by 2020 in some African countries 30% by 2050 in Central and South Asia 30% by 2080 in Latin America;

• Crop revenues could fall by 90% by 2100 in Africa due to climate variability and change.

IPCC further states that the mitigation measures are affordable (Figure 1.3). It will at most cost a maximum of 3% of global GDP in 2030. Or mitigation would at most postpone global GDP growth by one year over the medium term (Figures 1.3 and 1.4). However in view of the lack of political will by the developed countries, which are the principal emitters of greenhouse gases, it is most unlikely that the urgent battle against global warming will start anytime soon.

FIGURE 1.3 IMPACTS OF MITIGATION ON GDP GROWTH (Source: IPCC)


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FIGURE 1.4 CARBON DIOXIDE EMISSIONS OF SELECTED COUNTRIES AND

THEIR GDPs

(From Lecture of Nobel Laureate and US Energy Secretary Dr. Steven Chu)

The Academies of Sciences of the World organized an epoch-making International Conference themed “Transition to Sustainability in the 21st Century” in the Tokyo International Forum, 15-18 May 2000. An important keynote speaker was Professor John P. Holdren, now US President Obama’s Science Advisor. His address was entitled “The Energy-Environment-Development Challenge”. In his paper, he stated: “The connections among energy, environment, and development are direct and profound. Development should be thought of as the process of improving the human condition in all its aspects, not only economic but also environmental, political, social and cultural. Sustainable development should mean doing so by means and to end points that are consistent with maintaining the improved conditions indefinitely. Energy in convenient and affordable forms is an indispensable ingredient of economic progress. But energy is also the primary cause of many of the world’s most damaging and intractable environmental problems. Providing energy in the forms and quantities needed to meet economic aspirations while avoiding intolerable degrees of environmental disruption is the core of the sustainable development challenge. Climate change is the most dangerous and intractable environmental problem. It is the most dangerous because it profoundly influences all environmental conditions and processes and all aspects of human well-being. It is the most intractable because


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it is deeply rooted in the characteristics of the world energy supply system that can be changed only slowly and with great difficulty.”

The chart below (Figure 1.5) describes the dramatic increase in global primary energy supply since the end of the Second World War, highlighting the growing dependence on oil and coal.

FIGURE 1.5 WORLD PRIMARY ENERGY SUPPLIES 1850 - 1997

It is clear that the main thrust in combating global warming is the reduction of carbon dioxide emission from fossil dependent, principally coal-fuelled power plants, and from internal combustion engine vehicles. Professor Holdren suggested the following options for reducing carbon emissions per unit of economic activity:

• Increased efficiency of energy end-use in buildings, transportation, & industry; • Transition to a lower-energy-intensity mix of economic activities; • Increased efficiency of conversion of fossil fuels to end-use energy forms; • Switching from coal & oil to natural gas; • Capturing & sequestering carbon when fossil fuels are transformed or used; • Increased deployment of renewable & nuclear energy options

At the turn of this century, renewable energy technologies like solar, wind and electric cars etc are but glimmers of hope rather than practical realities. The non carbon emitting energy option was nuclear energy. It is well to repeat Professor Holdren’s words “Climate Change is the most intractable because it is deeply rooted in the characteristics of the world energy supply system that can be changed only slowly and with great difficulty.” The global energy industry has the largest annual turnover of all industries, i.e. some 3.0 trillion US dollars. It has invested heavily in


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traditional and well proven energy technologies even if they contributed and continue to contribute significantly to global warming by carbon dioxide emission. The capital asset stock of such energy installations is inestimable. The major global energy players are naturally drawn to megaprojects rather than diffused renewable energy technologies. Despite causing the most devastating human-caused environmental disasters like the Exxon Valdez oil spill in 1989 and the BP Deepwater Horizon oil spill in the Gulf of Mexico, 2010, giant oil corporations are still persisting in such high risk drilling activities One might well ask why they do not invest the tens of billions of US dollars in fines, compensation and rehabilitation activities in benign green renewable energy technologies like solar wind and electric cars etc. In the melting of the Arctic Ocean ice cap, nations are busy stacking claims for the oil, natural gas and other mineral riches under the ocean bed rather than taking urgent collective actions to arrest the melting and what it portends for humankind!

If fossil fuel energy utilization is to be reduced, one obvious option is the proven and non carbon dioxide emitting nuclear power. After all, the energy industry is not burdened with the broader environmental, health and safety issues of nuclear power operation and waste storage and disposal. Nuclear power has experienced a renaissance since the turn of the century with the embrace of government and industry and the muting of opposition from civil society organizations that consider nuclear power as a much lesser “evil” than global warming. Since the Millennium Sustainability Transition Conference of May 2000, the Academies of Sciences of the World have continued to engage all stakeholders on the closely knit issues of climate change, energy and development. Their consultancy and study company, the InterAcademy Council (IAC) conducted a two-year, US dollar 2 million energy study. The study report, entitled “Lighting the Way: Toward a Sustainable Energy Future”, was published in 2007. In the US$3 trillion annual turnover global energy industry, many study reports are continually commissioned and published to lobby for support and to justify their investments. One might well ask why another study report? As is the norm of scientific studies of academies of sciences, the IAC energy study is evidence-based, independent, transparent and unbiased. It is not funded nor influenced by vested interest groups, be they public sector, private sector or single-agenda NGOs. This is especially important in dealing with a highly complex issue as energy that has such intimate linkage to global warming on the one hand and economic development on the other. It is to be noted that the US Co-Chair of the IAC study team was Nobel Laureate Dr. Steven Chu, then Director, Lawrence Berkeley National Laboratory, now US Secretary of Energy. The IAC study report strongly advocates multi-stakerholder investment in renewable energy like solar, wind and biofuel as well as in electric vehicles and energy storage devices from research and development to commercialization and installation in power grids and transportation sector. Whilst admitting these still lack the critical mass of unit power output scale and competitive cost, the Study Report is very optimistic. Given the proper enabling environment, these green technologies will contribute greatly to the solution of the climate change challenge confronting humankind. Whilst such advocacy by the world Academies of Sciences does have some impact in influencing academic R&D in green technologies, its influence on government and energy industry policy decision making in favour of green technologies is still limited.

http://en.wikipedia.org/wiki/Environmental_disaster�

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http://en.wikipedia.org/wiki/Gulf_of_Mexico�


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Nevertheless, green technologies are progressing by leaps and bounds. One of the most important factors is the rare earth industry. In the face of Fukushima nuclear disaster of March 2011 likely to put paid to the nuclear renaissance, it is even more imperative to accelerate the large scale deployment of green technologies. Once again the rare earth industry is the key. 1.3 The Green Economy and Rare Earths The growing global interest in green technologies to mitigate the threat from climate change has given rise to a cluster of business opportunities together dubbed the “green economy”. The green economy has also expanded beyond just green products to also encompass green services. But the basic tenets of the green economy remain. It is about low carbon, less pollution, renewable and clean. The projection is that as more and more consumers embrace green purchasing, and as more governments practice green procurement, the demand for green products and services is set to witness exponential growth in the coming years.

UNEP has developed a working definition of a green economy as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. In its simplest expression, a green economy can be thought of as one which is low carbon, resource efficient and socially inclusive.

Practically speaking, a green economy is one whose growth in income and employment is driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services. These investments need to be catalyzed and supported by targeted public expenditure, policy reforms and regulation changes. This development path should maintain, enhance and, where necessary, rebuild natural capital as a critical economic asset and source of public benefits, especially for poor people whose livelihoods and security depend strongly on nature.

The use of rare earth elements in IT technology has increased dramatically over the past years. New advanced battery, magnet and optoelectronics technology is depending on the use of these rare earth metals. Rare earth magnets are small, lightweight, and have high magnetic strength and so have become a key part of the miniaturization of electronic products. The key rare earth metals in magnets are neodymium, praseodymium and dysprosium. For example neodymium is an important metal for hard disks. Another major use of rare earth oxides is in metal alloys. High performance alloys involving rare earth metals have an important uses in computer memory chips. Rare earth metals (particularly erbium) also act as laser amplifiers in increasingly important fiber optic communication cables.

1.4 Green Economy Vulnerable to Rare Earth Minerals Shortages

"Many new and emerging clean energy technologies, such as the components of wind turbines and electric vehicles, depend on materials with unique properties. The availability of a number of these materials is at risk due to their location, vulnerability to supply disruptions and lack of suitable substitutes." — Steven Chu, the United States Secretary of Energy and Nobel Laureate (2010)


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Currently China supplies some 97% of global demand of REE. In recent years, China has been consolidating its rare earth industry and reducing its production and export quotas in an attempt to retain more of these minerals for domestic use as well as to regulate the sector and clean up the industry, which creates air and water emissions and seepage from tailing ponds, and has social impacts on local villagers in rare earth mining areas. The Chinese government announced that in the first half of 2011, it will cut its export quotas for rare earth minerals by more than 11 per cent (China Daily 2010), which will further reduce the supply of REEs needed in other countries for high-tech products. This has raised grave concern in the developed economies as their competitiveness in green technologies is seen to be threatened. USA and Europe have brought their complaint against China to the World Trade Organisation (WTO) which ruled in their favour.

As supplies of REEs are becoming constrained at the same time as demand grows, the search and exploitation for REE resources has reached near panic proportion. In 2010, worldwide demand for the critical minerals was 125 000 tonnes and it is expected to rise to 225 000 tonnes by 2015 (Bourzac 2010). As a result, countries such as Argentina, Australia and the U.S. are now considering opening or reopening rare earth mines. Vietnam and Brazil are developing their REE mining and processing with urgency. Some governments have taken swift action to begin to address potential shortages. In the United States, for example, several bills have been introduced in the House of Representatives to address the issue and the Department of Energy (Figure 1.6) released a strategy to fill gaps in knowledge about critical materials and to define actions to overcome risks, including diversifying the global rare earth supply chain, developing substitute materials and technologies, and seeking ways to recycle, increase efficiency in use, and reuse rare earth minerals (US DoE 2010). Japanese companies have started signing deals with India for supply of Rare Earth Minerals. Recent reports have suggested that the Japanese have become so desperate that they are now even considering mining for rare earths in the Pacific Ocean bed. The Times of India reported on 9 December 2010 that Toyota Tsusho Corp, the trading company part-owned by Toyota Motor Corp, will build a rare earth processing plant in India to secure supply sources outside China.


11

Figure 1.6 shows the short- and medium-term criticality of supply risk for a number of rare earth minerals that are important to clean energy technologies. "Criticality" is a measure that combines importance to the clean energy economy and risk of supply disruption (US DoE 2010).

Opening new mines will help to ease the rare earth shortage problem, but it will require significant investment, especially to prevent the important environmental impacts of extraction and production, and it can take years before new sources produce sizeable yields (US DoE 2010). In the near and medium term, China’s near monopolistic control will remain unchallenged except for the Lynas Mount Weld mine and the Gebeng REE facility. This amply demonstrates how strategically Malaysia is placed in the race for green technology competitiveness.


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References

Bourzac, K. (2010). "Undermining China's Monopoly on Rare Earth Elements." MIT Technology Review, December 22, 2010. Accessed online on January 5, 2011 at http://www.technologyreview.com/energy/26980/?mod=chfeatured

Chu, Steven (2007), “The Energy Problem and How We Might Solve It” by Nobel Laureate, IAC Energy Study Co-Chair, Director Lawrence Berkeley National Laboratory (Now US Secretary of Energy), Chinese Academy of Sciences Graduate School Sciences and Humanities Forum, Beijing, 11 October, 2007 Holdren, John P., (2000) “The Energy-Environment-Development Challenge” Professor, Teresa and John Heinz Professor of Environmental Policy; Director, Program on Science, Technology, & Public Policy, John F. Kennedy School of Government; and Professor of Environmental Science & Public Policy, Department of Earth & Planetary Sciences, Harvard University. (Now US President Obama’s Science Advisor). International Conference “Transition to Sustainability in the 21st Century” of the Academies of Sciences of the World, Tokyo, 15-18 May 2000. “IPCC Special Report on Renewable Energy Sources and Climate Change Mitigation” May 2011. InterAcademy Council (IAC), 2007 “Lighting the Way: Toward a Sustainable Energy Future” http://www.interacademycouncil.net/?id=12039 Pachauri, R. K. (2011) “Fukushima, Energy and Climate Change” Chairman of the Intergovernmental Panel on Climate Change (IPCC); Director-General, The Energy and Resources Institute; Director, Yale Climate & Energy Institute, and first holder of the Energy Commission Chair of Energy Economics of Universiti Tenaga Nasional, (UNITEN) Malaysia, in UNITEN on 28 April 2011. UNEP Report February 2011 “Green Economy Vulnerable to Rare Earth Minerals Shortages” UNEP Global Environment Alert Service (GEAS) US Department of Environment Report 2010 “Critical Material Strategy”; Advanced Research Projects Agency – Energy. World Trade Organisation Report (WTO) July 2011 “China – Measures related to the Exportation of Various Raw Materials” Reports of the Panel

http://www.technologyreview.com/energy/26980/?mod=chfeatured�

http://www.interacademycouncil.net/?id=12039�


13

Chapter 2: Rare Earth Industries: Upstream Business

2.1 What are Rare Earths? Rare Earth Elements consist of a group of fifteen elements known as the Lanthanides. The lanthanides are located in block 5d of the periodic table from lanthanum to lutetium. The lanthanides are not as rare as was once thought; even the scarce rare earths (e.g., europium and lutetium) are more common than the platinum-group metals. Figure 2.1 shows the position of rare earth elements in the Periodic Table. For industrial purposes, yttrium is considered as rare earth element.

FIGURE 2.1 THE LANTHANIDES

The lanthanides have many scientific and industrial uses. Their compounds are used as catalysts in the production of petroleum and synthetic products. Lanthanides are used in batteries, lamps, lasers, magnets, phosphors, catalysts, glass additives, computer screens, motion picture projectors, and X-ray intensifying screens. Generally they are used in high-tech products and advanced materials in green technology.

2.2 What are Their Chemical Properties? The special properties of the elements are attributed to the electronic structure of the lanthanides. The chemistry of the lanthanides differs from the main group elements and transition metals because of the nature of the 4f orbitals. These orbitals are shielded from the atom's environment by the 4d and 5p electrons. As a consequence of this, the chemistry of the elements is largely determined by their size, which decreases gradually from 102 pm (La3+) with increasing atomic number to 86 pm (Lu3+), the so-called lanthanide contraction. All the lanthanide elements exhibit the oxidation state +3. In addition Ce3+ can lose its single

http://chemistry.about.com/library/blperiodictable.htm�


14

f electron to form Ce4+ with the stable electronic configuration of xenon. Also, Eu3+ can gain an electron to form Eu2+ with the f7 configuration which has the extra stability of a half-filled shell. Promethium is a man-made element as all its isotopes are radioactive with half-lives of less than 20 years. In terms of reduction potentials, the Ln0/3+ couples are nearly the same for all lanthanides, ranging from -1.99 (for Eu) to -2.35 V (for Pr). Thus, these metals are highly reducing, with reducing power similar to alkaline earth metals such as Mg (-2.36 V). All the trivalent lanthanide ions, except lutetium, have unpaired f electrons. However the magnetic moments deviate considerably from the spin-only values because of strong spin-orbit coupling. The maximum number of unpaired electrons is 7, in Gd3+, with a magnetic moment of 7.94 B.M., but the largest magnetic moments, at 10.4-10.7 B.M., are exhibited by Dy3+ and Ho3+. However, in Gd3+ all the electrons have parallel spin and this property is important for the use of gadolinium complexes as contrast reagent in MRI scans. A solution of 4% holmium oxide in 10% perchloric acid, permanently fused into a quartz cuvette as a wavelength calibration standard Crystal field splitting is rather small for the lanthanide ions and is less important than spin-orbit coupling in regard to energy levels. Transitions of electrons between f orbitals are forbidden by the Laporte rule. Furthermore, because of the "buried" nature of the f orbitals, coupling with molecular vibrations is weak. Consequently the spectra of lanthanide ions are rather weak and the absorption bands are similarly narrow. Glass containing holmium oxide and holmium oxide solutions (usually in perchloric acid) have sharp optical absorption peaks in the spectral range 200–900 nm and can be used as a wavelength calibration standard for optical spectrophotometers. As f-f transitions are Laporte-forbidden, once an electron has been excited, decay to the ground state will be slow. This makes them suitable for use in lasers as it makes the population inversion easy to achieve. The Nd:YAG laser is one that is widely used. Lanthanide ions are also fluorescent as a result of the forbidden nature of f-f transitions. Europium-doped yttrium vanadate was the first red phosphor to enable the development of colour television screens. 2.3 What are the Unique Properties? The unique properties of rare earth elements (Lanthanides and Yttrium), which make them ideally suited for green technology and other high-technology applications are as follows:

• Chemical – Unique electron configuration • Catalytic - Oxygen storage and release • Magnetic - High magnetic anisotropy and large magnetic moment • Optical - Fluorescence, high refractive index • Electrical - High conductivity • Metallurgical - Efficient hydrogen storage in rare earth alloys


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2.4 Geochemistry The lanthanide contraction is responsible for the great geochemical divide that splits the lanthanides into light and heavy-lanthanide enriched minerals, the latter being almost inevitably associated with and dominated by yttrium. This divide is reflected in the first two "rare earths" that were discovered: yttria (1794) and ceria (1803). The geochemical divide has put more of the light lanthanides in the Earth's crust, but more of the heavy members in the Earth's mantle. The result is that although large rich ore-bodies are found that are enriched in the light lanthanides, correspondingly large ore-bodies for the heavy members are few. The principal ores are monazite and bastnaesite. Monazite sands usually contain all the lanthanide elements, but the heavier elements are lacking in bastnaesite. The lanthanides obey the Oddo-Harkins rule - odd-numbered elements are less abundant than their even-numbered neighbours. Three of the lanthanide elements have radioactive isotopes with long half-lives (138La, 147Sm and 176Lu) that can be used to date minerals and rocks from Earth, the Moon and meteorites.

2.5 Rare Earth Minerals

It should be noted that, although the name “rare earth” is used, global reserves of rare earth occurrences show that the group is not rare at all but amount to some 100 million tonnes of rare earth oxides (REO). Based on its present annual consumption (75,000 tonnes REO), the proven reserves of rare earth minerals can serve the world for over 1000 years. Further, the elements do not occur as “earth” but as a group of metallic elements (rare earth elements, or REE).

Rare earth exists in mineral forms in nature. The most commonly used rare-earth minerals are bastnaesite, a kind of rare-earth fluoro-carbonate, and monazite, a kind of rare-earth phosphate (which, in Peninsular Malaysia, also occurs associated with tin deposits, together with another rare-earth containing mineral known as xenotime).

The relatively common hydrothermal rare earth minerals and minerals (Table 2.1) which often contain significant rare earth substitution include; aeschynite, allanite, apatite, bastnäsite, britholite, brockite, cerite, fluocerite, monazite, gadolinite, parisite, stillwellite, synchysite, titanite, wakefieldite, xenotime, zircon, and parisite. The minerals highlighted in bold are also found in Peninsular Malaysia (Table 2.2).

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TABLE 2.1 SOME MAJOR RARE EARTH MINERALS AND THEIR ELEMENTS


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TABLE 2.2 RARE EARTH ELEMENTS IN XENOTIME AND MONAZITE SAMPLES FROM PERAK

Rare Earth Element

Xenotime* (%)

Monazite# (%)

Cerium, Ce

3.13

46.20

Dysprosium, Dy

8.3

n.a

Erbium, Er

6.4

n.a

Europium, Eu

trace

0.10

Gadolinium,Gd

3.50

0.80

Holmium, Ho

2.00

n.a

Lanthanum, La

1.24

23.00

Lutetium,Lu

1.00

n.a

Neodymium, Nd

1.60

19.70

Proseodymium, Pm

0.5

4.60

Samarium, Sm

1.10

3.20

Terbium, Tb

0.9

n.a

Thulium, Tm

1.10

n.a

Ytterbium, Yt

6.80

n.a

Yttrium, Y

61.0

2.00

*Source: Johnson, G.W., and Sisneros, T.E., 1981, Analysis of rare-earth elements in ore concentrate samples using direct current plasma spectrometry—Proceedings of the 15th Rare Earth Research Conference, Rolla, MO, June 15–18, 1981: New York, NY, Plenum Press, v. 3, p. 525–529; # Source: Y.C. Wong, 1985, The Mining, Processing and Economic Significance of Rare Earth and Yttrium Minerals: An Overview including Special Reference to Malaysia; Geological Survey of Malaysia publication;


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There are several rare earth element-bearing minerals which can be classified based on chemical states of the elements. Table 2.1 shows some major rare earth element categorised as oxides, carbonates, phosphates, and silicates, while Table 2.2 shows rare earth elements found in samples of xenotime and monazite from Perak. Description of some major minerals follows:

2.5.1 Bastnasite

The fluorocarbonate mineral, bastnäsite (Ce, La, Y)CO3F, is the most productive global mineral source for rare earth elements. This mineral tends to contain abundant light rare earth elements (LREE) and very low proportions of heavy ones, and tends to be specifically high in cerium, lanthanum, yttrium, and neodymium. As with most ores, the real mineral environment is which bastnäsite is recovered is far more complex than the simplified chemical formula of the single mineral. Dozens of REE fluorocarbonate minerals are known. Various common substitutions in the chemistry of bastnäsite yield a series of related minerals that may be found together in bastnäsitic ores. Three variations in nomenclature are used to describe a few common ranges in the metal portion of the solid solution series. These are bastnäsite-(Ce), bastnäsite-(Y), and bastnäsite-(La).

Related minerals may also form from substitution of the fluorine or carbonate anions. These include parisite, and various hydroxylbastnäsites, among others. Bastnäsite ores have been found in a variety of igneous contexts, ranging from carbonatites, granites, and pegmatites, as well as in hydrothermal and bauxite deposits. 2.5.2 Monazite

Monazite, a rare earth phosphate, is the second most common mineral used as a rare earth ore. Like bastnäsite, a variable naming system is used to express the primary elemental composition of monazite ores. The 4 terms, monazite-Ce, monazite-La, monazite-Nd, and monazite-Pr, each reflect varying abundances of rare earths, but never reflect the exclusive presence of only one element. Monazite contains more LREEs than HREEs, and always contains a mix of various rare earths. Monazite is typically associated with somewhat higher ratios of heavy rare earths than are found in bastnäsite ore deposits.

Monazite is a very dense mineral. As a result, it collects in placer sands that result from sorting, by gravity, of the products of the weathering of the exposed igneous (primarily pegmatite) rock masses in which it originally formed. In addition to these sandy sources, the mineral is also mined in place from several locations.

Due to the ability of thorium, a radioactive element, to substitute for the rare earths in the monazite structure, radioactive byproducts are a challenge in some monazite mining locations. These byproducts, including the thorium daughter product, uranium, may become mineable co-products in extreme cases. Not all monazite mineral sources contain significant percentages of thorium.


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2.5.3 Xenotime

Xenotime is the third most important rare earth element ore, after monazite and bastnäsite. Of the 3 common REE ores, xenotime typically contains the highest ratios of heavy rare earth elements. The generalized chemical description of xenotime is yttrium phosphate (YPO4). The yttrium is easily substituted by several of the heavy rare earth elements, dysprosium, ytterbium, erbium, and gadolinium, followed by lesser quantities of terbium, holmium, thulium, and lutetium, as well as by uranium and thorium. Uranium and thorium will not universally be present in significant quantities in xenotime ores. Uranium and thorium present either a mineable co-product or a nuisance, depending entirely upon mine context, quantity, and location. Xenotime is related to monazite. The two are very similar phosphates. The first, monazite, is built primarily around the element, cerium, which is substituted readily by the various elements among the first half of the lanthanides, meaning the light rare earth elements, or LREE. The second mineral, xenotime, is built primarily around yttrium, which is readily substituted by the various HREE, the heavier second half of the lanthanide range of elements.

Xenotime is a definitive member of the group of HREE or Yttrium group REE ores. These ores contain heavy REEs in abundances not typically seen among the bastnäsite and monazite ores, which can be described as the contrasting Cerium group, or primarily LREE ores. These two clusterings of mutually substituting elements are referred to as 'Cerium' and 'Yttrium' groups after their dominant (most common) members.

Xenotime and monazite can be found together in the same area, and represent a continuum of mineral formation based upon change in temperature and pressure. At lower temperatures and pressures, monazite will form, and at higher temperatures and pressures, xenotime will form. When the crystal structure of the phosphate mineral changes, reflecting its formation temp./pressure, one or the other of the two rare earth element groups gets excluded from the crystal lattice.

2.6 Rare Earth Mineral-Bearing Rocks/Placers

Rare earth-bearing minerals are trapped in several types of rocks, and carbonatites is one of the known rocks. Rare earth minerals are usually found associated with a suite of rocks (classified as alkaline to peralkaline igneous rocks). The minerals also occur in pegmatites associated with alkaline magmas and in or associated with carbonatite intrusives (as in Mount Weld, Australia, and possibly also in Baiyun Obo, China).

2.6.1 Carbonatites Carbonatites are igneous rocks composed of more than 50% carbonate minerals, generally calcite or dolomite. They typically occur as localized cross cutting dikes, veins, or sills within larger masses of intrusive alkaline igneous rocks, and are often found in the context of a breccia formed during the event in which they were emplaced. The carbonatites represent, very nearly, an end member of the igneous sorting process, with the high-temperature crystallizing ultramafic rocks at one of the other extremes. Carbonatites are some of the lowest (if not the absolute lowest, 500-

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600 C.) temperature melts that are part of the igneous rock series on this planet. The combinations of geological processes that lead to their formation are not entirely understood, and may vary from case to case. They represent either a late (extreme last) product of sorting by fractional crystallization from unusual (possibly upper mantle type) source rocks, the regional accumulation of low temperature minerals during partial melting, or a combination of both of these processes. Ironically, when silicates (generally less than 10%) are present in carbonatites, they tend to be the pyroxene and olivine, both of which have a very high melting (dissolution) temperature, and both of which are very exclusive of the various incompatible elements typically enriched in carbonatites.

The Mount Weld mine, located in Western Australia, is one of the best known REE deposits, and stands to be one of the world’s top producers, with carbonatites hosted ores averaging up to 15.4% rare earth oxides by weight. Weathering of carbonatites minerals within the structure has resulted in significant surface concentration of primarily light rare earth oxides in phosphates and laterites. The mine ratios are light rare earth elements (LREE) dominant with Cerium and Lanthanum making up about 73% of oxides. Excellent percentages of Neodymium and Praseodymium (about 23.8% of oxides), along with lesser percentages of a few other elements provide the mine with a solid basis for long term competition. Niobium and tantalum provide potentially valuable co-products. Typically, thorium levels in the pure lanthanide phosphate mineral grains are less than 0.4% ThO2, which results in a typical thorium level in the ore of approximately 0.075% ThO2.

2.6.2 Peralkaline Granitoids Studies have shown that the heavy rare earth element deposits arising from peralkaline rocks occur in a diffuse field with relatively low La/Gd and Eu/Eu ratios, probably because of the derivation of the host peralkaline rocks from plagioclase-bearing crustal sources. Placer xenotime from Malaysia plots near the peralkaline field too. It is clear that the granitoids of the Main Range Granites, especially of those in the Perak and Selangor states, are the sources of the rare earth element-bearing monazites and xenotimes. 2.6.3 Placer Deposits

The minerals monazite and xenotime have been extracted from tin-mining placer deposits in Perak and Selangor, Malaysia. With the down-turn of the tin-mining industry, the amounts produced of these two minerals have declined. It is worth noting that, prior to 1988, xenotime from Malaysia was the largest source of yttrium in the world.

2.7 Rare Earth Supply and Demand

In a United States Geological Survey (USGS) report in 2009, it was reported that the total world reserves amounted to some 99 million tonnes. The bulk of the reserves was reported to be in China with 36 million tonnes (or, some 36.5%). In contrast, Malaysia was reported to have 30 thousand tonnes (or 0.03%). The same report reported that world mine production and reserves are shown in Tables 2.3 and 2.4.


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TABLE 2.3 WORLD PRODUCTIONS AND RESERVE OF REE

Country Mine Production (tonnes) Reserve (tonnes)

2008 2009 USA

-

-

13,000,000 (13.19%)

Australia

-

-

5,400,000 (5.48%

Brazil

650

650

48,000 (0.05%)

China

120,000

120,000

36,000,000 (22.32%)

Commonwealth of Independent States

n.a

n.a

19,000,000 (19.27%)

India

2,700

2,700

3,100,000 (3.14%)

Malaysia

380

380

30,000 (0.03%)

Other Countries

n.a

n.a

22,000,000 (22.32%)

World Total

124,000

124,000

99,000,000

It is important to note that the actual reserves present are not all economically minable. Only a certain percentage is mined. In a report to the US Congress in late 2010, the Congressional Research Service reported that the global demand for rare earths was some 134,000 tonnes/year. With annual production at 124,000 tonnes, there is a shortfall of some 10,000 tonnes annually. However, this shortfall has been covered by available stocks. The Chinese Society of Rare Earths (CSRE) has projected that global demand will rise to 170,000 tonnes by 2015 with an annual growth rate of 76%. The demand for rare earth metals is driven mainly by Japan and followed by the U.S.A. The 2010 export figures bear this out with Japan importing some 50% (or, 16,022 tonnes) while the U.S.A. imported 19% (6,196 tonnes). The other importing countries (and their amounts) are Netherlands (4%, 1,402 tonnes), Germany (3%, 945 tonnes), Italy (3%, 853 tonnes), the U.K. (2%, 548 tonnes), South Korea (1%, 394 tonnes) and others (11%, 3,580 tonnes).


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TABLE 2.4 WORLD RARE EARTH RESERVE

Country

Reserves (tonnes)

USA

11,771,600 (7.23%)

Australia

13,420,500 (8.25%)

Brazil

52,597,000 (32.32%)

China

36,000,000 (22.12%)

CIS

19,000,000 (11.68%)

Vietnam

14,800,000 (9.10%)

India

3,100,000 (1.91%)

Canada

4,389,500 (2.70%)

South Africa

1,254,000 (0.77%)

Greenland

4,890,000 (3.01%)

Malawi

107,000 (0.07%)

Turkey

130,500 (0.08%)

Kyrgyztan

291,000 (0.18%)

Kenya

972,000 (0.60%)

World Total

162,724,100

Source: USGS, CSRE and Roskill Reports, 2010

2.8 Mining and Processing

The diversity of the deposits results in a wide variation in mining and processing technologies. Often, rare earths are exploited as a by-product of other metals. Examples are the largest rare earth mining at Bayan-Obo, China, where the main output is iron. Furthermore smaller REE extractions are by-products from titanium or uranium mining operations. The most often practiced processing technique of the crude ore after mining is the concentration (also called beneficiation) by milling and flotation. This technique is used at Bayan-Obo, at the Sichuan mine, China, at Mountain Pass, USA, and in the short term also at Mt Weld, Australia.


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The rock bearing rare earth minerals are processed in several step by physical method from mining, grinding, physical separation to produce mineral concentrate for further refinement. The main steps are shown in Figure 2.2 and are discussed briefly as follows;

1-10% REO Ore with low concentration

30-70% REO Concentrate

FIGURE 2.2 THE MAIN PROCESS STEPS IN REE MINING AND BENEFICIATION.

2.8.1 Mining The rare earth ore mining most frequently takes the form of open pit mining. However, there are also deposits which would require underground mining, e.g. the Canadian deposit at the Thor Lake. In open pit mining, before reaching the ore rich in the metals to be extracted, the overburden material (soil and vegetation above the bedrock) as well as the waste rock (not ore-bearing or having a too low concentration of the ore) need to be removed and are stockpiled. 2.8.2 Milling The mined ore is crushed and subsequently ground to fine powder in the mill with the aim of creating a high surface which is needed for the further separation. 2.8.3 Separation of the Rare Earth Minerals The rare earth minerals are separated from the rest of the ore by physical methods. The most commonly used method is flotation, which requires a lot of water and

FURTHER PROCESSING

MILLING

FLOATATION

MINING


24

chemicals (flotation agents) as well as a high amount of energy. The input into the flotation is the milled crude ore with usually low concentrations (grades) of REO (often between 1 and 10 %). The product of the flotation is an enriched concentrate with a higher REE-percentage (in the range of 30 – 70 %). The huge waste streams, called tailings, are a mixture of water, process chemicals and finely ground minerals. Usually, the tailings are led to impoundment areas, which can be either artificial reservoir. The tailings contain about 500 ppm thorium oxide and 30 ppm uranium oxide 2.8.4 Processing The concentrate undergoes further processing to extract the rare earth elements. It is transported to a refinery which can be off-site. There the REE are further extracted and separated into the different elements as required.

An alternative mining technology is the in-situ leaching technology which is used in the Chinese heavy rare earth elements (HREE) mining from ion adsorption deposits.

The rare earth mine in the Mount Weld, Australia, is an open pit type where ore with an average grade of 15 % REO are mined. The minerals are further processed at the concentration plant to produce a concentrate of around 40 %. Further processing for rare earth elements extraction and separation will be carried out at the proposed Lynas Advanced Materials Plant in Gebeng, Pahang, Malaysia.

2.9 Rare Earth Elements Separation

There are several options to separate and isolate rare earth elements from the ore as shown in Tables 2.5 (Page 35) and Figure 2.3 (Page 37). The most commonly practised is the sulphuric acid cracking. The mineral concentrate is subjected to concentrated sulphuric acid cracking at 600oC for 3 hours, the products are rare earth sulphate, calcium sulphate and carbon dioxide gas from carbonate decomposition. The soluble rare earth sulphate is leached repeatedly from the cracked ore by water and filtered. The solid consists mainly of calcium sulphate (gypsum) and other metals. Impurities in the rare earth sulphate solution are separated by selective precipitation by adding magnesium oxide to achieve pH 3.5-4. The separated solids are removed by filtration.

The rare earth sulphate solution will undergo further purification by solvent extraction with organic extractants in kerosene. The organic extractants are di(2ethylhexyl)phosphoric acid, 2-ethylhexyl phosphoric acid mono-2-ethylhexyl ether, and iso-octylamine. The rare earth sulphate is extracted into organic solvent while the impurities remain in acidic aqueous phase. Repeated steps are carried out to ensure high purity rare earth products.

To achieve efficient extraction, the rare earth sulphate in the organic phase is scrubbed with dilute sulphuric acid or hydrochloric acid to remove impurities. The scrubbed organic phase which is loaded with rare earth sulphate is stripped with 6M hydrochloric acid to back extract the rare earth into aqueous phase and become rare earth chloride salts. The extraction steps can be selected to produce mixed rare earth chlorides or individual rare earth element chloride. Rare earth chlorides are corrosive and difficult to handle and store, they are converted to carbonates or oxides, for storage and shipment.


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The aqueous solution of rare earth chloride is further purified by solvent extraction process to obtain 99% pure products. To the aqueous solution sodium carbonate slurry is added to precipitate rare earth carbonate at suitable pH. The products can be in the form of oxides depending on the use and demand. To produce oxides the rare earth carbonate can be calcined at 900oC.

2.10 Safety and Health Risks Related to Rare Earth Production Activities

Occupational and public safety and health risks related to rare earth may be addressed at its mining, transportation, processing, waste disposal as well as decommissioning stages. In Malaysia, rare earths are either by product of tin mining and the subsequent processing of the tin tailing, or amang, for the extraction of valuable minerals, or imported as rare earth ores and concentrate to be processed into rare earth oxides. Since in nature rare earth elements co-exist with rare earth minerals and non rare earth minerals (e.g. ilmenite, zircon etc), safety and health risks related to the production of rare earth oxides should be addressed at the tin mining activity, the amang processing of valuable minerals (rare earths and non rare earths) and the disposal of processing residues. With the introduction of much larger and advanced minerals containing NORM processing plants such as those of Huntsman Tioxide (M) Sdn Bhd and the soon to be constructed Lynas Advanced Material Plant, large amount of raw materials and mineral concentrates are used. These raw materials and mineral concentrates are imported from countries such as Australia and India, and will introduced additional safety and health risks during the physical and chemical extraction processes towards the final products.

2.10.1 Impact of Rare Earth Processing on Occupational Safety and Health During amang processing, both wet gravity separation and dry high magnetic and electrostatic physical separation methods are used. The dry separation methods resulted in dusty working environment. These suspended dust particles are basically mineral dust and silica, which have been shown to be health hazards when inhaled and ingested. Poor ventilation of the dusty working areas, poor hygiene on the part of the workers, and the absence of or improper use of personal protective equipment (such as respirators) increases the likelihood of exposures and aggravated the risk from lung related diseases such as pneumoconiosis. Pneumoconiosis comprise a wide spectrum of conditions ranging from diseases characterized by diffuse collagenous pulmonary reactions to relatively small lung burdens of bioactive dusts (e.g. silicosis, asbestosis) to diseases characterized by largely non-collagenous reactions in the face of heavy lung dust burdens (e.g. coal workers pneumoconiosis) (Becklake, 1992). Studies have shown of potential lung diseases associated with rare earths (Porru et al. 2001; Yoon et al. 2005). Unfortunately report of epidemiological studies related to such exposure in Malaysia is significantly absent. Naturally occurring radionuclides (NOR), such as uranium and thorium as well as their progenies that co-exist with rare earth minerals (e.g. monazite, xenotime) and other valuable minerals (e.g. ilmenite, zircon etc) are technologically enhanced during the separation process. Materials containing technologically enhanced radionuclides


26

(or TENORM) posed additional health problems related to ionizing radiation or radiological risk (AELB, 1991; Hewson, 1993; Zaidan and Ismail, 1996; Ismail, 1997; Vearrier, et al., 2009). In 1991, the Atomic Energy Licensing Board (AELB) reported a study on 29 amang plants. Based on inhalation of suspended radioactive dust, radon and thoron progenies, and external radiation, it was concluded that the total dose received by workers exceeded 5 mSv y-1 (AELB, 1991). The maximum permissible dose limit for radiation workers and members of the public are 20 mSv y-1 and 1 mSv y-1 respectively. Thus depending on the classification of these workers (i.e. as radiation workers of non-radiation workers) they may not or may have exceeded the permissible dose limit approved by the AELB respectively.

Uranium and thorium series have progenies that are gamma, alpha and beta emitters and they are considered as internal as well as external radiation hazards. High Linear Energy Transfer radiation (e.g. alpha and beta particles) have relatively low penetration power as compared to gamma radiation but caused significant damage to cells when they enter the body through ingestion, inhalation or injection. Poor hygiene and unsafe act of not wearing breathing respirators among amang workers contributed to radiation risk following exposures to alpha and beta emitters. Comparative studies of radiation-induced chromosomal aberrations among TENORM workers in Malaysia showed a significantly higher frequency of chromosomal aberrations among amang workers as compared to ilmenite-processing workers (Zaidan and Ismail, 1996). A longer duration of employment and poorer occupational hygiene, explained the high chromosomal aberration frequency among amang workers. Health risks related to radiation exposures from NOR present in rare earth minerals as well associated valuable minerals are dependent on the doses received. Levels of doses received are dependent on the activity of NOR in these raw minerals, rare earth concentrates, and residues. A comparative study of excess cancer risks to the public following exposure to amang, iron oxide and gypsum (residues from the extraction of titanium dioxide local and imported ilmenite), and tin slag showed results that were dependent on the estimated Effective Dose Rates (Ismail and Teng, 2011). It should also be pointed out that although some rare earth processing plants yielded residues containing NOR that were above the permissible limit, and must be licenced and controlled, residues such as synthetic gypsum may be considered for regulatory exemption because the activity concentration of NOR and thus the derived radiological risk is comparable to Malaysia’s average background radiation dose (Ismail and Teng, 2011).

2.10.2 Impact of Rare Earth Processing on the Public Residing

Adjacent to the Plants The processing and stockpiling of valuable minerals containing rare earth minerals in open-air spaces within the compounds of the amang processing plants are subject to environmental elements such as wind and rain. In Malaysia, some amang plants were built very near to housing areas, some even as close as 20 m, and these residents could potentially be exposed to radiation in suspended radioactive dust blown from such plants (Ismail et al., 2001). However, based on the Effective Dose Rates from inhaled suspended radioactive dust, radon-thoron and their progenies, and external gamma


27

radiation measured at adjacent houses, it was found that the doses the residents may receive could not be differentiated from those of the background. Such result indicated that radioactive dust of inhalable size and those that could be carried by wind was not significantly blown over into the neighbouring houses or inhaled by the residents. However, this finding may not hold true for plants located in other hot and windy areas. Similarly, the impacts from other non-radioactive suspended particles, such as rare earth minerals and silica, to nearby residents needed further investigation because such mineral dust have been shown to cause pneumoconiosis (Becklake, 1992; Yoon et al., 2005).

2.10.3 Impact of Rare Earth Processing Residues and Wastes The processing of rare earth minerals produced residues that have generated a lot of concerns among the country’s regulators and public alike. Such concerns stemmed from the fact that such residues or wastes have accumulated to such large volumes and are kept in temporary landfills and disposal sites that warrants immediate mitigative actions by the relevant authorities (Ismail and Teng, 2011). Table 2.6 shows the magnitude of such residues from different sources. To add to this issue the Lynas operation is expected to generate three major types of co-products, i.e. iron phosphor gypsum (32,000 ton y-1), Magnesium rich gypsum (88,997 ton y-1) and synthetic gypsum (26,764 ton y-1). Among these three co-products iron phosphor gypsum contain the highest activity concentration of thorium (1,650 ppm or 6.2 Bq g-1 Th as ThO2), uranium (225 ppm or 0.28 Bq g-1 U-238 as U3O8) compared to the remaining two co-products.

TABLE 2.6 TENORM RESIDUES ACCUMULATED IN MALAYSIA UP TILL 2009

TENORM Residues Quantity (metric ton)

Gypsum 5,193,699

Iron oxides 127,879

Tin slag (without tantalum) 75,490

Tin slag (with tantalum) 2176

Source : Report from AELB licensees (2010) Potential relative radiological risk to workers working at disposal sites and landfills, as well as to members of the public, should these areas be developed for future land use has been reported (Ismail et al., 2011). Radiological risk was assessed based on the magnitude of radiation hazards, effective dose rates and excess cancer risks. Based on monitoring data collected by the AELB over 5 – 10 years, it was shown that except for tin slag and tin tailing-based TENORM wastes, all other TENORM wastes have Total Activity Concentrations (TAC) values comparable to that of Malaysia’s soil as shown in Table 2.7. Occupational Effective Dose Rates estimated in all landfill areas were lower than the 20 mSv y-1 permissible dose limit. The average Excess Cancer Risk Coefficient was estimated to be 2.77 x10-3 risk per mSv. The effective dose rate for residents living on gypsum landfills were estimated to be lower than the permissible dose limit for members of the public, and was also comparable to that of


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the average Malaysia’s ordinary soils. The average excess cancer risk coefficient was estimated to be 3.19 x 10-3 risk per mSv. Results obtained suggested that gypsum wastes should be exempted from any radiological regulatory control and should be considered radiologically safe for future land use.

TABLE 2.7 ESTIMATED EFFECTIVE DOSE RATES (MSV Y-1) AND EXCESS CANCER RISKS FOR PUBLIC LIVING ON TENORM RESIDUE’S.

Landfills Effective Dose Rates (mSv yr-1)

Excess Cancer Risk

Risk Coefficient (risk/ mSv)

Amang

9.79 x 10-1

1.17x10-2

1.20 x 10-2

Tin slag 6.09 1.85 x10-2 3.05 x 10-3

Gypsum 0.25 9.83 x10-4 3.93 x 10-3

Oil sludge at TCOT

0.11 2.86 x 10-4 2.58 x 10-3

Malaysia soil

0.15

8.44 x 10-4

5.63 x 10-3

Annual Dose Limit for members of the public (ICRP, 1990) 1

Estimation was made using RESRAD Computer Code for 5 exposure pathways during the first year. Occupational factor = 0.8 The accumulation of large volume of residues containing NOR at one location may cause significant exhalation of Rn-222 and Rn-220 gases. This has been shown in a phosphogypsum storage site in the town of Huelva, on the Southwest of Spain. In this area phosphogypsum (1,200 ha) containing high concentrations of Ra-226 (average of 647 Bq kg-1) was stored in piles formed over the last 40 years (Duenas et al. 2007). The presence of Ra-226 caused the exhalation of Rn-222. However, when the government of Andalusia restored it by covering 400 ha of the phosphogypsum site with a 25-cm thick natural soil, they found that Rn-222 exhalation was approximately 8 times lower than the active phosphogypsum stacks. Azllina et al. (2003) reported the potential radiological health impact of amang and ilmenite on people residing on land once occupied by amang processing plant. Using RESRAD Computer Code and working on the worst-case scenarios they concluded that potential residents could be exposed to doses exceeding the maximum permissible dose rate for public. In these estimations the mean concentrations of Ra-226 and Ra-228 in zones contaminated with amang were 855 ± 8 and 1036 ± 21 Bq kg-1 respectively. Those zones contaminated with ilmenite were 2571 ± 13 and 599 ± 14 Bq kg-1 respectively. The background Malaysian soil is 64 Bq kg-1 for Ra-226 and 84 Bq kg-1 fro Ra-228 (Khairuddin et al. 2000). Nevertheless the use of sufficient cover soil (0.1 – 1 m) and ventilation rates between 1 – 10 m3h-1 could make such areas safe for future residential use.


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2.10.4 Safety and Health during Transportation Safety and health risks during transportation of raw materials and mineral concentrates from the port or local supplier to the processing plants, and transportation of minerals within the plant premises may pose radiological risk to drivers of vehicles carrying such minerals. Unfortunately information of radiation exposures to drivers in Malaysia is not well documented. However, compliance to all requirements in the Radiation Protection (Transport) Regulations 1989 and Radiation Protection (Transport) (Amendment) Regulations 1991, with regards to Low Specific Activity materials (LSA-I) would ensure the safe transportation of such materials.

2.11 Major Risks in Rare Earth Minerals Processing In the course of the extracting, separating and refining processes, a large number of chemical materials are applied, leading to a huge amount of waste gas, waste water and solid waste. In China, after several decades of rare earth mining and processing with little regard to health, safety and the environment, regulations have been tightened that will obligate all rare earth smelting separation facilities to install health, safety and environmental protection systems (Chen 2010). Pollutants are carried by water emissions which contain radioactive thorium, uranium and their daughter products, heavy metals, acids, and fluorides while air emissions contain HF, HCL, SO2, heavy metals and radionuclides. In a study by MEP (2009), in the processing of 100,000 tons of rare earth concentrates per year during the extraction phase, approximately 200 tons of ThO2 contained in sludge are left over. Using the sulphuric acid-roasting method during the production of one ton of rare earth concentrate, between 9600-12000 m3 of waste gas containing fluoride, SO2, SO3 and dust may be emitted, and further 75 m3 of acid-washing waste water and one ton of radioactive residues are generated per ton. Since saponification with ammonia is still used for rare earth refining, a large number of waste water is produced. To separate one ton of rare earth concentrate with a REE content of 92% REO, 1 – 1.2 tons of ammonium bicarbonate are needed (MEP 2009) . In the case of the Lynas operation in Gebeng, Pahang, three types of residues will be generated, namely Water Leach Purification Residue (WLP), Flue Gas Desulphurisation Residue (FGD) and Neutralisation Underflow Residue (NUF). The average quantities of residues generated are shown in Table 2.8. The Water Leach Purification Residue contains mainly calcium sulphate which is also known as synthetic gypsum, while the Neutralisation Underflow Residue (NUF) is rich in magnesium. Both residues can be considered as raw materials for other industry. Storage and handling of the residues can be overcome if WLP is used as raw material in making gypsum plaster and NUF as fertiliser. The Lynas operation’s residues are expected to contain thorium, uranium and their decay products at concentration of about 1600 ppm (Th) and 30 ppm (U) depending on the minerals used in the process. Beneficiation of the residues will be subjected to AELB Act 1984 and EQ Act 1974. If the thorium and uranium levels can be reduced to natural concentration as in naturally occurring radioactive materials (NORM) the WLP and NUF residues can be feeders to other industries. Failure to do so, permanent safe and secure repository site must be located to cater for WLP, NUF and FGD.


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TABLE 2.8 RESIDUES GENERATED BY LYNAS, GEBENG, PAHANG

Residue Stream

Dry Mass tons/year Year 1

Dry Density tons/m3

Annual Volume (m3) Year 1 to Year2

Annual Volume (m3) Year 3 to Year 10

10 Year Volume (m3)

FGD 27,900 1.05 26,600 53,200 478,800

NUF 85,300 1.05 81,300 162,600 1,463,400

WLP 32,000 0.70 45,800 91,600 824,400

Biosolid 913 0.28 3,318 6,636 29,864

Total 146,113 157,018 314,036 2,796,464

For comparison purposes, Table 2.9 shows thoria residues generated by the Asian Rare Earth (ARE) and the Malaysian Rare Earth Corporation (MAREC) Plant in 1980s. The thoria residue is deposited in a remote and secure location due to its high radioactivity and possible beneficiation for thorium nuclear fuel in the future.

TABLE 2.9 Thoria And Synthetic Gypsum Residues Plant ARE and MAREC Lynas

Mineral Monazite Carbonatites

Radioactive

content

Uranium ppm Thorium ppm Uranium ppm Thorium ppm

5,000 80,000 29 1,600

Residue Thoria Synthetic Gypsum

Radioactive

content

Uranium ppm Thorium ppm Uranium ppm Thorium ppm

7,000 360,000 22.5 1,614

Another risk that has to be managed is the health of the plant employees and of the people working/living in the immediate environs of the plant. There have been reports from overseas that airborne radioactive particulates containing thorium could cause lung cancer to develop. Locally, in the ARE plant area, anecdotal stories relate to leukemia cases in plant workers. 2.12 Emission Standards of Pollutants from Rare Earth Industries

The Ministry of Environmental Protection of China in July 2010 finalised revision of Emission Standards of Pollutants from Rare earth industry. These standards set specific thresholds for the amount of pollutants including waste water, waste gas and radioactive elements, especially thorium, which are more stringent than those in industrialised nations. It is timely as well for the Department of Environment Malaysia to set new emissions standards for rare earth extraction industry to alleviate anxiety and fear of the public. The rare earth


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plant in Gebeng is under tight public scrutiny and the public expects that the plant operation will run on environmentally advanced standards, which will significantly reduce the environmental damage compared to the old outdated techniques used by ARE and MAREC in the 1980s. 2.13 Waste Storage, Management, Treatment and Decommissioning

In modern rare-earth processing plants, waste storage is an important risk mitigation measure. As the whole process involves the use of expensive solvents and leaching materials, ideally, it is economically advantageous to find use of all wastes generated. In this way, the plant in effect produces zero waste. The wastes generally contain phosphates and sulphates. The phosphates can be used as fertilizers, while the sulphates, occurring as calcium sulphate, or commonly known as gypsum, has multiple uses in industries. Those waste streams which do not contain the calcium sulphate and phosphates should undergo proper chemical treatment before they are discharged.

An important safety requirement of the rare earth processing plant is the decommissioning of the plant at the end of its life. As radioactive elements occur in the waste, it is imperative that proper decommissioning practices are deployed. From project inception, there must be a proper decommissioning plan based on industry best practices. In the case of the ARE Plant in Papan, Perak, the rehabilitation of the site has incurred a cost running into hundreds of millions of ringgit. 2.14 Recycling of Rare Earth Metals There have also been recycling efforts in the rare earth industry. In the past, with the low prices accorded to rare earth metals, there was no incentive to undertake recycling of the elements. With the anticipated increase in price in the various RE metals, recycling will become attractive. There may be a need to undertake research to further improve the efficiency of recycling. According to a study for the European Union by the Institute of Applied Ecology (IAE) (2011), research activities are being conducted on pre-consumer and post-consumer recycling in China and other countries. At the same time, some companies have already patented recoveries of RE metals from various products. For example, OSRAM holds the patent on the recycling of yttrium and europium from discharge lamps and fluorescent lamps. Research activities can be undertaken on yttrium and europium recovery from lamps, TV tubes and computer monitors. An important focus is the recycling of magnet scrap which arises in large amounts not only after consumption but also during their production. The IAE report quoted various authors in estimating that 20-30% of the rare earth magnets are scrapped during manufacturing. However, the recovery of the rare earths from production waste is not yet practiced. There are various studies in China on the recovery of rare earth metals from neodymium magnet scrap and waste and that dysprosium oxide, or Dy2O3, could be recovered to an extent of over 99%.


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In Japan, research is on-going on creating technology to recover rare earth metals such as lanthanum and cerium from used Ni-MH batteries used for HEVs, and to refine the recovered metals for re-use in new batteries. The IAEA Report pointed out that the recycling of rare earth elements (REE) from spent catalysts (industrial as well as automotive catalysts) is not common due to relative low prices of REE in the past. Further studies deal with highly specific recycling processes from cleaning water, ferrosilicon and waste from the aluminum production (an interesting point if Sarawak goes ahead with the plans to develop an aluminum plant there). In general, recycling of REE, the availability of recycling plants and technologies is not common. Recycling for small amounts of magnetic scrap containing Nd, Pr and Dy and small amounts of yttrium from laser and garnet applications was undertaken. Furthermore, there is no current industrial recycling process for the recovery of rare earths from Ni-MH batteries containing La, Ce, Nd and Pr. All of these point to the fact that with the low price for various REEs, there was no incentive for research into recycling in the past. This will change in the future if prices escalate. 2.15 Conclusions The rare earth industry is expanding especially with the growing demand for green products and the global push to embrace the green economy. As a result, investments in rare earth mining and processing have also grown. Apart from China, many other countries have started to seriously allocate new investments in rare earth refining. Some have begun reviving their old rare earth mines which were abandoned during times of low pricing. The upstream rare earth industry has to contend with some safety and health risks. The processing of rare earths produces some byproducts which do carry some low level radioactive risks. As the IAEA Report has demonstrated (Appendix 1), such risks are manageable. There are technologies available to effectively render the wastes harmless and safe. These include the following measures:

1. The plant operations must adhere to stringent procedures for waste management to ensure worker safety, public safety and environmental well-being;

2. A health scanning of plant employees as well as people working within the immediate vicinity of the plant should be undertaken to establish the baseline data on health of the community living and working around the plant premise;

3. Discharge limits for toxic chemicals and heavy metals must meet standards stipulated in the EQA 1974;

4. Properly designed permanent storage for low level radioactive waste must be built to isolate the gypsum residues if its beneficiation is not viable;

5. Construction of interim low level radioactive waste storage within the premise to accommodate waste produced in the first 3 years of operation.


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References AELB, 1991. Radiological hazards assessment aat mineral processing plants in Malaysia.LEM/LST/16/Pind 1. Atomic Energy Licensing Board. Azlina, M. J., Ismail, B., Samudi, M. Y., Syed Hakimi, Sakuma and Khairuddin, M. K., 2003. Radiological impact assessment of radioactive minerals of amang and ilmenite on future landuse using RESRAD Computer Code. Appl. Radiat. Isotopes. 58, 4. Beauford, Robert. An Introduction to the Geology of the Rare Earth Elements and Associated Mineral Ores. http://www.rareearthelements.us/ree_geology. Acc. 24 June 2011. Becklake, M.R., 1992. The mineral dust diseases. Tuber Lung dis. 73(1): 13-20. Chen, Zhanheng, 2010. Outline on the development and policies of China rare earth industry, Deputy Director Office of the Chinese Society of Rare earths, April, 2010. http://www.reitausa.org/storage/OutlineonthedevandPoliciesofChinaRareEarthindustry.pdf. Accsd. June 2011 Duenas, C., Liger, E., Canete, S., Perez, M., and Bolivar, J.P., 2007. Exhalation of Rn-222 from phosphogysum piles located at the South of Spain. Journal of Environmental Radioactivity. 95: 63-74. Hewson, G.S., 1993. Overview of occupational radiological hazards in the amang industry of South East Asia. SEATRAD Bulletin XIV (1) 7-28. IAEA, 2011. Report of the International Review Mission on the Radiation Safety Aspects of a Proposed Rare earth processing Facility (the Lynas Project). Institute for Applied Ecology, 2011. Study on Rare Earths and Their Recycling. Final Report for the Greens/EFA Group in the European Parliament

Ismail, B., Redzuwan, Y., Chua, R.S. and Shafiee, W., 2001. Radiological impacts of the amang processing industry on neighbouring residents. Applied Radiation and Isotopes. 54, 393-397. Ismail B., Teng, I.Y and Muhamad, S.Y., 2011. Relative radiological risks serived from different TENORM wastes in Malaysia. Radiation Protection Dosimetry. 1-8 Ismail, B and Teng, I.Y., 2011. Kajian Pengecualian Penguatkuasaan Had Kawalan Untuk Pelupusan Sisa TENORM. AELB-UKM. Johnson, G.W., and Sisneros, T.E., 1981, Analysis of rare-earth elements in ore concentrate samples using direct current plasma spectrometry—Proceedings of the 15th Rare Earth Research Conference, Rolla, MO, June 15–18, 1981: New York, NY, Plenum Press, v. 3, p. 525–529

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http://www.reitausa.org/storage/OutlineonthedevandPoliciesofChinaRareEarthindustry.pdf.%20Accsd.%20June%202011�


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Khairuddin, M.K., Hakaimi, S.H.S.A, Omar, M., 2000. Assessment on radiological doses associated with the disposal of amang. Malaysian Science and Technology Congress. 2000. 16-18 October, Perak. Malaysia. Meor Yusoff, M. S. and Latifah, A., 2002. Rare earth processing in Malaysia: case study of ARE and MAREC plants. Proceedings of Regional Symposium on Environment and Natural Resources, 10-11 April, Kuala Lumpur, Vol. 1, p287-295; 2002 Porru. S, Placidi, D, Quarta, C., Sabbioni, E., Pietra, R and Fortaaner. S., 2001. The potential role of rare earths in the pathogenesis of interstitial lung disease: a case report of movie projectionist as investigated by neutron activation analysis. Journal of Trace Elements in Medicine and Biology. 14: 232-236. Schüler, D. and Buchert, M. 2011. Study on Rare Earths and Their Recycling, Final Report for The Greens/EFA Group in the European Parliament. Darmstadt, Germany. January 2011.

Vearrier, D, Curtis, J.A. and Greenberg, M.J., 2009. Technology enhanced naturally occurring radioactive materials. Clinical Toxicology. 47, 393-406. Wong, Y.C., 1985, The Mining, Processing and Economic Significance of Rare Earth and Yttrium Minerals: An Overview including Special Reference to Malaysia; Geological Survey of Malaysia publication Yoon, H.K., Moon, H.S. Park, S.H., Soong, J.S, Lim, Y and Kohyama, N., 2005. Dendriform pulmonary ossification in patient with rare earth pneumocociosis. Thorax. 60: 701-703. Zaidan, K. and Ismail, B., 1996. Radiation-induced chromosomal aberrations among TENORM workers: amang- and ilmenite-processing workers of Malaysia. Mutation Research. 351(2). 157-161.


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TABLE 2.5 EXTRACTION PROCESS

Minerals Benefication Decomposition of RE concentrate

Separation and Refining of

REO

Extraction of RE Metals

Bastnaesite Monazite mixed Type

The ore is crushed into gravel size and transported to the mill factory. Through low-intensity magnetic separation to high-intensity magnetic separation up to flotation process, rare earth concentrates (with 30-60% grade of REO) are produced as a co-product by main product iron.

a) acidic method REO are roasted at 400°C and 500°C in concentrated sulphuric acid to remove fluoride and CO2. Then the solution is leached in water and filtered to remove the impurities. REEs are then leached in extraction agents like ammonium bicarbonate (NH4)HCO3 precipitation and hydrochloric acid. REE chlorides (RECl3) are achieved. This method is used for 90% of products. b) alkaline method

a) acidic method. REO are roasted at 400°C and 500°C in concentrated sulphuric acid to remove fluoride and CO2. Then the solution is leached in water and filtered to remove the impurities. REEs are then leached in extraction agents like ammonium bicarbonate (NH4)HCO3 precipitation and hydrochloric acid. REE chlorides (RECl3) are achieved. This method is used for 90% of products. b) alkaline method

Light rare earth metals are extracted by molten salt electrolysis based on chloride or oxide. The middle and heavy rare metals such as Sm, Eu, Tb and Dy are obtained by Metallothermic reduction in vacuum. The reaction is carried out at 1450- 1750°C and needs an inert gas like Argon.


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Bastnaesite (Sichuan)

Surface mining: the ore is alkali granite type rare-earth elements deposit. The ore is crushed into gravel size and transported to the mill factory. Two methods are adopted: -from gravity separation to magnetic separation -from gravity separation to flotation separation

The rare earth concentrates achieved a grade of 70% REO. The present treatment process of Sichuan bastnaesite in the industry is oxidating roasting-hydrochloric leaching process. The roast is carried out at 600°C to remove CO2. The RE concentrates are leached in hydrochloric acid, precipitated by sodium hydroxide solution and leached in hydrochloric acid again. REE chlorides (RECl3) are achieve.


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FIGURE 2.3 BLOCK FLOW DIAGRAM: CRACKING AND SEPARATION


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Chapter 3: Rare Earth Industries: Downstream Business

3.1 Introduction Nowadays, one can find rare earth elements in literally all the products that demonstrate high energy efficiency and reduced greenhouse gas emissions. With the growing shift towards green technologies and products, the demand for rare earth elements is predicted to escalate. The downstream business in rare earth-based products is also expanding. There are many applications of rare earths in green products. This chapter explains why such products need to incorporate rare earth elements. 3.2 Rare Earth Usage in High-tech Industries Rare earth elements are attractive due to their magnetic, optical and electrical properties, characteristics that high-tech industries often demand. Therefore rare earth elements have become essential ingredients in the production of many industrial materials including permanent magnet, catalytic cracking materials, luminescence materials, hydrogen storage materials, magnetic refrigeration materials, optical fiber, magneto-optical storage materials, giant magneto-resistance materials, lasers, superconductor materials and dielectric materials. As a result, rare earth metals and alloys that contain them are used in many devices that people use every day such as: computer memory, DVD's, rechargeable batteries, cell phones, car catalytic converters, magnets, fluorescent lighting, etc. Their applications cover many technological sectors: aerospace, aviation, information technology, electronic, energy resources, medical and health, etc. They play essential roles in newly developed green energy technology, electronic industry, military and defense technology, and other emerging high-tech technologies. Examples are electric car, wind turbine, lighting and display, microprocessors, mobile communications, guided missiles, smart bombs, etc. During the past twenty years there has been an explosion in demand for many items that require rare earth metals. Twenty years ago there were very few cell phones in use but the number has risen to over 5 billion in use today. The usage of computers and DVDs has grown almost as fast as cell phones. Many rechargeable batteries are made with rare earth compounds. Demand for the batteries is being driven by demand for portable electronic devices such as cell phones, readers, computers and cameras. Rare earth compounds are also used in batteries that power electric vehicles and hybrid-electric vehicles. As concerns for energy independence, climate change and other issues drive the sale of electric vehicles, the demand for batteries made with rare earth compounds will climb even faster.

http://geology.com/news/category/global-warming.shtml�


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Rare earths are used as catalysts, phosphors and polishing compounds. These are used for air pollution control, illuminated screens on electronic devices and optical-quality glass. All of these products are expected to experience rising demand. The above technologies are considered to be rare earth-highly dependent technologies (Table 3.1) due to the lack of effective alternative materials. In short, there are increasing downstream high-tech industry activities which are dependent on rare earth materials. Therefore, rare earth has become a commodity with high strategic importance to many countries especially the industrially advanced countries.

TABLE 3.1 [2]

United States Usage (2008 data) Metallurgy & alloys 29% Electronics 18% Chemical Catalysts 14% Phosphors for monitors, television, lighting

12%

Catalytic converters 9% Glass polishing 6% Permanent magnets 5% Petroleum refining 4% Other 3%

Figure 3.1 shows the main application fields and the range of global demand estimates for the years 2006 to 2008 by volume in tonne rare earth ore (REO) per year. The total demand was around 124 000 tonne REO in 2008 [4][5].

FIGURE 3.1 GLOBAL DEMANDS OF RARE EARTHS BY VOLUME FROM 2006

TO 2008 (IN TONNES OF RARE EARTH OXIDES PER YEAR)


40

Figure 3.2 shows the same data as the previous figure and gives additional information on the use of rare earth element (REE) and specifies the kind of applications in more depth. The figure encompasses the different rare earths. The elements shown in a smaller font size play a minor role in comparison to the other elements shown in the figure.

FIGURE 3.2 GLOBAL APPLICATIONS OF RARE EARTH ELEMENTS

(COMPILED BY ÖKO-INSTITUT)[4] Figure 3.2 also shows that the most economically relevant fields of application are magnets and phosphors. For phosphors, expensive REE, such as europium and terbium, are used. For magnets, mainly neodymium and praseodymium (medium price) and dysprosium and terbium (high prices) are used. The applications glass, polishing, ceramics and catalysts are relevant in terms of their volume but less relevant in terms of their value. The main reason for this is that the cheaper REE cerium and lanthanum are used very frequently for these applications. Figure 3.3 shows the rare earth demand in terms of economic value according to Kingsnorth (2010). Due to significant differences in the used rare earth elements and the specific prices for the different applications, the demand distribution paints a somewhat different picture.


41

FIGURE 3.3 GLOBAL DEMANDS OF RARE EARTHS IN TERMS OF ECONOMIC

VALUE IN 2008 ACCORDING TO [4][5] 3.3 Major Applications of Rare Earth Elements In this section details of the major applications of rare earth elements shown in Fig. 3.4 will be presented (Plates 1 – 5 in Pages 51 - 53).

3.3.1 Magnets

Rare earths are part of neodymium-iron-boron magnets (short forms: neodymium magnets, Nd-magnets) and samarium cobalt magnets. Both belong to the group of permanent magnets. The samarium cobalt magnets play only a minor role, as they were in many cases replaced by the more powerful neodymium magnets. Neodymium magnets are the strongest available magnets and exceed other permanent magnets such as samarium cobalt magnets by the factor 2.5 and other aluminium and iron based magnets by the factor 7 – 12. In ferrite magnets, small shares of lanthanum are included. These permanent magnets have low magnetic properties, but they are cheap, light, easy to magnetise and widely disseminated.

The strong neodymium magnets enable the design of miniaturised application of electric devices such as:

1. small speakers (ear phones) and hard disks.

Two further large fields of application are electric motors used in

1. hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs),

electric vehicles (EVs) and 2. generators of wind turbines.

The share of magnets of the total rare earth application is around 20 % in terms of the global volume. The share of value is higher at around 37 %.


42

3.3.2 Electric and Hybrid Electric Vehicles

The demand development of Nd-magnets in the field of e-mobility depends on three main drivers: • the future production of hybrid electric vehicles (HEV), plug-in electric

vehicles (PHEV) and electric vehicles (EV), • the future production of electric bikes, • the future motor technology and the share of motors using Nd-magnets in EV,

HEV and PHEV and • the specific neodymium magnets demand per electric motor. However, it is difficult to estimate the demand for the rare earths in EV and HEV as there is a very high uncertainty in the economic development of the electric and hybrid electric vehicles market and the embedded technologies (type of motor, specific Nd-demand per motor, etc.). 3.3.3 Wind Turbines

Wind turbines are an important driver for the Nd-magnet demand. There are three different technologies for wind turbines and only one of them uses the Nd-magnets. All three systems are available on the market. The market share of current sales is estimated at 14 % for turbines with Nd-magnets [4][6].

Figure 3.4 shows the distribution of the global capacity of wind power in 2010. The total wind power capacity was estimated to be 175 GW.

FIGURE 3.4 GLOBAL WIND POWER CAPACITIES IN JUNE 2010 [4][7]

Figure 3.5 presents the newly installed capacities in the first half of 2010. It shows convincingly that currently almost half of the new capacities are implemented in China.


43

FIGURE 3.5 NEWLY INSTALLED WIND POWER CAPACITY IN THE FIRST

HALF OF 2010 [4][7] 3.3.4 Hard Disks and Electronic Components with Nd-magnets

According to the Japanese company Shin-Etsu [4][8] around a third of the Nd-magnets are used in hard disk devices. It is estimated estimates that around 1,700 t Nd (corresponds to 2,150 t Nd-oxide) were embedded in hard disks in PCs including laptops which were sold in 2008. Here, some degree of substitution by the solid-state drive (SSD) technology is expected. However, it is also expected that the substitution will occur gradually and will probably not affect all hard disk devices.

The future demand development of permanent magnets in optical and acoustic devices is probably similar to the sales of electronic goods. Average growth rates in the electronics sector are estimated at 5 % for the period from 2010 to 2013 by the industry research firm RNCOS [9].

3.3.5 Phosphors and Luminescence

Almost all future energy saving lighting and display technologies, such as compact fluorescent lamps (CFL), fluorescent tubes, LEDs, OLEDs, EL foils, plasma displays and LCDs require the use of rare earths as phosphors, providing a high energy efficiency and high colour quality. In the past, many chemical elements and compounds are being studied for their use in luminescence. Among the substances being analysed, rare earths in particular seem to be most promising in terms of their high colour quality and good energy efficiency. It seems very unlikely that this performance will be achieved without the use of rare earths from the current perspective.

The share of phosphors and luminescence in total rare earth application is around 7% worldwide and around 9% in China, in terms of volume. However, the share in terms of economic value is much higher at around 32% according to the estimate provided in Kingsnorth (2010). One reason for the high value of the phosphors is the high price


44

of europium and terbium, which both cost more than 700 US $/kg (as in November 2010)[4].

The growth of rare earth consumption in the sector of lighting is determined by following parameters:

• The global overall growth including all types of lighting is estimated at 7% per

year by Philips [10] for the years 2004 to 2011. • Incandescent bulbs are going to be phased out due to their high energy

demand. For example, the European Union, Australia, Canada and the United States banned the sale of incandescent bulbs in the years ahead in accordance with national law. They will be replaced by other lighting systems, mainly by compact fluorescent lamps (CFL) and halogen lamps. Besides these types, there are numerous other lighting systems. Most of the energy efficient lighting systems include phosphors based on rare earths.

• Currently LEDs which also contain rare earths still play a minor role in

lighting with a market share of 2.4% in 2008. The main current uses were decorative effect lighting and orientation light; they are also starting to replace other lighting systems, e.g. automobile headlights. However, their development is progressing rapidly, and wider uses at very high efficiencies are to expect, particularly if the current comparably high prices begin to decrease. [11] assumes a growth rate of 32 % from 2008 to 2013 with a market share of about 8 % in 2013.

• Cathode-ray tubes which were used formerly on a large scale in TV sets and

monitors are currently replaced by plasma displays and LCDs. Both techniques use rare earths. In 2008, around 130 million television sets with plasma and LCD displays were sold [12]. It is forecasted to increase to approx. 280 million in 2014. This corresponds to an annual growth rate of 14 %.

3.3.6 Metal Alloys/Batteries

This application field comprises various uses which are summarised below [13]:

• One of the oldest applications is the use of cerium and lanthanum in

pyrophoric alloys which are used in flint ignition devices for lighters and torches.

• Mischmetal and cerium are used as minor alloys for casting of steel and iron.

They improve the stability of the casted product. • REE (Y, La, Ce) which are added to heat-resistant superalloys can

dramatically improve their performance. • REE are used for the solid state storage of hydrogen where a metallic matrix

of different metals absorbs a large amount of hydrogen at room temperature.


45

This procedure is better than storage as cryogenic liquid or compressed gas in terms of safety, volume and energy saving.

• REE are used in Ni-MH batteries which in turn are used in hybrid electric

vehicles (e.g. Toyota Prius) and portable appliances. • Scandium-aluminium alloys are a suitable material for light weight

construction. Due to the limited availability, it is mainly used in military aviation and not disseminated in civil aviation. Angerer et al [14] estimate the current scandium supply at 5 tonne per year and report a new Australian mining project with the production target of 200 tonne scandium oxide.

The share of the global applications of metal alloys and batteries in the total rare earth demand is around 18% in terms of volume. The global share in terms of economic value is lower at around 14%.

3.3.7 Ni-MH Batteries

Ni-MH batteries are used in hybrid electric vehicles and in portable appliances. Besides nickel and cobalt, they contain a mix of lanthanum, cerium, neodymium and praseodymium. This mix is also called “mischmetal”.

Pillot [15] estimates that in 2009 the hybrid electric vehicles already had a larger share (57%) in the total Ni-MH battery market in terms of value than the other applications (43%). Since the HEV market is nascent, it could be expected that the demand for Ni-MH batteries will be dominated by the development of the HEV market in the years ahead. The resulting rare earth demand depends on several factors:

• The specific rare earth demand for a Ni-MH battery. • The growth rate of hybrid electric vehicle market. • The applied battery system is of high relevance as the alternative battery

system – Li-ion batteries – use currently no or just small amounts of rare earths.

However, in the long term, Li-ion batteries will replace Ni-MH batteries due to several advantages. Other manufactures will start producing HEVs with Li-ion batteries and Toyota announced that it will launch a newly developed Prius hybrid minivan with a lithium battery in 2011 [16]. The large Chinese market for e-bikes mainly operates with lead batteries. Kingsnorth [5] estimates a rare earth demand in the field of metal alloys and batteries of 43,000 – 47,000 tonne REO in 2014, compared to a demand of 22,500 tonne REO in 2008. The average growth rate is given as between 15% and 20%.

3.3.8 Catalysts

The rare earth cerium and lanthanum are widely used for catalysts. Cerium compounds are used in automotive catalysts and as diesel additives in order to improve a clean combustion. Lanthanum and cerium are important in the petroleum


46

refining as fluid cracking catalysts (FCC). Further applications are used in chemical processing. The demand for rare earth as catalysts contributes to the total rare earth demand, constituting 20 % in terms of volume according to estimates of Kingsnorth [5]. Relatively low prices of lanthanum and cerium lead to a low share of value accounting for just 5 % in 2008 [5]. Nevertheless, these applications are highly relevant in terms of emission reduction, energy efficiency and the reduction of embedded precious metals (platinum, palladium and rhodium) in the catalysts due to an increased catalyst performance.

For the future, a further increase in the demand could be expected as the global stock of fuel driven vehicles increase steadily at approximately 3% per year. Thus, the demand for automotive catalysts will grow as well as the demand for petroleum.

3.3.9 Glass, Polishing and Ceramics

The group “glass, polishing and ceramics” comprises many different uses. Table 3.2 presents the most frequent applications [13][17]:

The applications described have a high share of the total rare earth demand of about 30% in terms of volume according the estimate from Kingsnorth [5]. Due to the manifold use of relatively cheap cerium, the share in terms of economic value was much lower at 9% (estimated from Kingsnorth [5]).

Kingsnorth [5] also gives more detailed estimates on the sectors for 2008: • Glass polishing 15,000 tonne REO (44%) • Glass additives 12,000 tonne REO (35%) • Ceramics 7,000 tonne REO (21%)


47

TABLE 3.2 OVERVIEW OF MAIN APPLICATIONS IN THE GROUP “GLASS,

POLISHING AND CERAMICS”


48

PLATE 1: RARE EARTH USAGE IN ADVANCED MATERIALS

PLATE 2: RARE EARTH USAGE IN MODERN INDUSTRIES


49

PLATE 3: RARE EARTH USAGE IN CONSUMER ELECTRONICS

PLATE 4: RARE EARTH USAGE IN GREEN TECHNOLOGY


50

PLATE 5: RARE EARTH USAGE IN GREEN ENERGY, ELECTRONICS,

DEFENCE AND MOBILE COMMUNICATIONS

PLATE 6: RARE EARTH USAGE IN DEFENCE


51

3.3.10 Others The group “others” comprises many smaller uses which do not fit into the categories presented above. Table 3.3 presents selected applications [13][17]:

TABLE 3.3 OVERVIEW OF MAIN APPLICATIONS IN “OTHERS”

3.4 Rare Earth Element Outlook Rare-earth use in automotive pollution control catalysts, permanent magnets, and rechargeable batteries are expected to continue to increase as future demand for conventional and hybrid automobiles, computers, electronics, and portable equipment grows. Rare-earth markets are expected to require greater amounts of higher purity mixed and separated products to meet the demand. Demand for cerium and neodymium for use in automotive catalytic converters and catalysts for petroleum refining was expected to expand by 6% to 8% per year for the next 5 years if the world economy remains strong. Rare-earth magnet demand was expected to increase by 10% to 16% per year through 2012, increasing to 45,000 t to 50,000 tonne by 2012 (Kingsnorth [5]). Future growth was expected for rare earths in rechargeable NiMH batteries, especially those used in hybrid vehicles, increasing to 10,000 t to 20,000 t REO by 2012. NiMH demand was also expected to increase (moderated by increasing demand for lithium-ion batteries) with increased use in portable equipment, such as camcorders, cellular telephones, compact disk players, digital cameras, digital video disk players, laptop computers, and MPEG audio-layer-3 players. Increased rare earth use was expected in fiber optics, medical applications that include dental and surgical lasers, magnetic resonance imaging, medical contrast agents, medical isotopes, and positron emission tomography scintillation detectors. Future growth potential was projected for rare-earth alloys employed in magnetic refrigeration (Gschneidner and Pecharsky, 2008." Quoted from the United States Geological Survey Minerals Yearbook (3). [3])


52

References

[1] http://en.wikipedia.org/wiki/Rare_earth_element [2] http://www.geology.com [3] http://minerals.usgs.gov/minerals/ [4] Dr. Doris Schüler, Dr. Matthias Buchert, Dipl.-Ing. Ran Liu, Dipl.-Geogr. Stefanie

Dittrich, Dipl.-Ing. Cornelia Merz, “Study on Rare Earths and Their Recycling”, Final Report for The Greens/EFA Group in the European Parliament, Darmstadt, January 2011.

[5] Kingsnorth, D., IMCOA: “Rare Earths: Facing New Challenges in the New Decade”

presented by Clinton Cox SME Annual Meeting 2010, 28 Feb – 03 March 2010, Phoenix, Arizona.

[6] Fairley, P.: Windkraft ohne Umwelt, Technology Review, 20.04.2010, download from

http://www.heise.de/tr/artikel/Windkraft-ohne-Umweg-985824.html [7] World Wind Energy Association (WWEA): Table “Wind Power Worldwide June 2010”,

published on http://www.wwindea.org/home/index.php, last access: 30.11.2010 [8] Oakdene Hollins Research & Consulting: Lanthanide Resources and Alternatives, A

report for Deparment for Transport and Department for Business, Innovation and Skills. March 2010.

[9] Daily News, June 15, 2010: Stron Global Consumer Electronics Growth Forecast. [10] den Daas, K.: Lighting: Building the future, New York, March 5, 2008. [11] Press center of Trendforce Corp: LEDinside: Compound annual growth rate of LED

light source reaches 32 %. 14.01.2010, http://press.trendforce.com/en/node/373 [12] DisplaySearch 2010: Graphik on globale TV sales and forecast, cited in: Hevesi, M.:

DisplaySearch: LCD-TV-Markt wächst weiter, LED setzt sich 2011 durch, 0.10.2010, PRAD Pro Adviser, http://www.prad.de/new/news/shownews_alg3719.html

[13] British Geological Survey: Rare Earth Elements, June 2010. [14] Angerer, G., et al: Rohstoffe für Zukunftstechnologien, Fraunhofer Institut für System-

und Innovationsforschung ISI, Karlsruhe in cooperation with Institut für Zukunftsstudien und Technologiebewertung IZT gGmbH, Berlin; 15 May 2010, Stuttgart.

[15] Pillot, C.: Present and future market situation for batteries, Batteries 2009, Sep30th – Oct

2nd. 2009. [16] The Economic Times: Toyota to launch lithium battery Prius in 2011. Reuters, 17 Apr

2010, download from http://economictimes.indiatimes.com/news/news-byindustry/

http://en.wikipedia.org/wiki/Rare_earth_element�

http://www.geology.com/�

http://minerals.usgs.gov/minerals/�

http://www.heise.de/tr/artikel/Windkraft-ohne-Umweg-985824.html�

http://www.wwindea.org/home/index.php�

http://press.trendforce.com/en/node/373�

http://www.prad.de/new/news/shownews_alg3719.html�


53

auto/automobiles/Toyota-to-launch-lithium-battery-Prius-in-2011 Report/articleshow/5823862.cms

[17] Avalon rare metals inc.: Rare metals information, download from

http://avalonraremetals.com/rare_earth_metal/rare_earths/, download in Nov 2010


54

Chapter 4: Rare Earth Industries: Strategies for Malaysia 4.1 Introduction If in the 70s and 80s, the concern over food security sparked the “green revolution” which transformed global agriculture, it is clear now the world is undergoing another “green transformation”. This time the concern is not about food security, but no less important is the threat posed by a host of worrying global trends. These include, as elaborated earlier, the changing climate, the depleting resources and the deteriorating natural support ecosystem. Such trends threaten to not only derail global economic growth, but may also upset the social fabric of human existence and sustainability. It is clear from the evidence presented earlier; energy is arguably at the centre of this threat to human survival. This is because use of fossil energy, especially coal, contributes the most to the changing climate. Admittedly fossil energy is highly preferred because of its comparatively lower cost. However, at the same time, the supply of fossil fuels is also fast depleting. Unless new economic oil wells are discovered, very soon the world will run out of petroleum. In Malaysia, experts predict that the country’s oil may soon run out by as early as 2019. Already Malaysia’s power system is dependent on imported coal to increase its power generation capacity. Is this sustainable? Over the last quarter of a century, the world economy has quadrupled, benefitting millions whilst billions in developing countries are still left in abject poverty. At the same time, 60% of the world’s major ecosystems have been degraded. This is because the economic growth of recent decades has been achieved mainly through drawing down natural resources, without allowing stocks to regenerate. This has led to widespread ecosystem degradation and loss. Water is also becoming scarcer. Overconsumption and wastage are ascribed as the root cause. And water stress is projected to increase due to climate change and global population explosion. This is what drives the green economy around the world. Green consumerism is now on the uptrend. Green investment has suddenly become attractive. There is a rise in green financing. New cleaner technologies have emerged through years of R&D. These include technologies in renewable energy, cleaner production and more efficient energy storage, distribution and consumption. The value of the global green economy is predicted to witness a boom in the coming years. Countries which do not invest in green energy now may live to regret the day when others are seen extracting dividends from their investment. 4.2 Rare Earths in Renewable Energy and Microelectronics Among the many alternative sources of energy, a lot of attention has been focused on wind and solar. Though much progress has been made, there are still major stumbling blocks in their commercial development. One has to do with their prohibitive costs which have yet to meet the lower costs offered by fossils. The current methodology in comparing investment of electric power generation alternatives in fossil fuelled power plant against renewable power


55

plants overemphasizes the economy of scale whilst disregarding any cost penalties due to carbon emission and resource depletion. Solar and wind power are intermittent, the former cannot generate during darkness and the latter without wind. When deployed in big scale, they can cause unacceptable power swings in the power grid lessening the reliability of power supply. Effective energy storage technology needs to be developed for power grids to better manage their large energy swings. Recent years have seen the recognition of the unique attributes of rare earth elements in such applications. As a result, the global demand for rare earths in magnets, batteries, superconductors and lasers, has witnessed a major surge. The incorporation of rare earth elements in the electromagnets used in wind turbines would significantly increase the conversion of wind into electricity. Consequently, the world demand for rare earths has increased exponentially. Although rare earth deposits are found in about 29 countries worldwide, China has emerged as the only country which has given serious attention to rare earth mining and production. It in fact started mining since the 1950s. It is now supplying 97% of the world’s demand for rare earths. Now China has about 100 companies involved in the rare earth industry. It is estimated that each year China produces more than 230,000 tonnes of rare earths. About 50% are exported. The global market for rare earths is estimated at USD 1 billion. But the market for the downstream products may run into tens of billions USD and are growing by the day. Japan now dominates the downstream high value products made from rare earths. But China is strategising to expand the downstream products business in rare earths. 4.3 Business Opportunities in Rare Earths With the projected expansion in the green economy globally, the world demand for rare earths and the associated green downstream products will further expand. As has been demonstrated in Chapter 3, the deployment of green technology products in all spheres of human activities are growing by leaps and bounds. Admittedly, there are environmental, health and safety risks involved in the industry, especially in the mining, extraction, processing and waste storage. However Chapter 2 has shown that the risks are manageable if the right technologies and good management practices are deployed under a strict regulatory regime. In view of the near panic reaction generated worldwide due to the reduction of rare earths export by China, what is certain is that the business opportunities in the rare earth industry are destined to be even more lucrative in the coming years. Many countries have started to seriously invest in the industry. Without rare earth products being available from outside China, it appears inevitable that China with their massive investments in rare earths will increasingly take charge of the key green technologies that will drive the global economy of this century. With the Lynas rare earth plant in Gebeng, Malaysia will be in the strategic position to be a key player in this vital industry. 4.4 Strategies for Malaysia: Development of Indigenous Rare Earth Industries Malaysia is stated to have some 0.03% of global world reserve of rare earth minerals. Chapter 2 presents a table of the rare earth elements present in samples of Xenotime and Monazite


56

from Perak. These two minerals have been extracted from tin placer deposits in Perak and Selangor. It is worth noting that, prior to 1988, xenotime from Malaysia was the largest source of yttrium in the world. Unfortunately with the down turn in the tin-mining industry, the amounts produced of these two elements have declined. Some are present in the tailings left by the tin mining industry. Apart from that, there are natural rare earth deposits in the country which have yet to be developed. We expect that Malaysia has more rare earth mineral deposits than the known global reserve of 0.03%. There is an urgent need to undertake a mapping exercise to determine the locations and quanta. Malaysia has led the world in tin mining expertise. We suggest that the development of the rare earth mining and processing can be the renaissance of our mining industry. The associated downstream green technology industries will make Malaysia a competitive player in the increasingly strategic sector of the global economy. Brazil is reported to have 0.05% of global rare earth reserve. It has attracted joint Japanese-Korean investment in mining its rare earths. That will be the start of their indigenous rare earth industry. It is worth remembering that Malaysia helped Brazil and many other developing countries in tin mining expertise. However, going forward, we must allow rare earths export only as a last resort.

The key determinants of the strongly recommended development of our indigenous rare earth industry are: the skilled human capital, command of upstream and downstream technologies, R&D, access to investment capital and access to world markets. We strongly recommend that Government should lead in a Government-Industry-Academia-CSO partnership. In fact, a 1Malaysia alliance to embrace the following broad strategies and action plans:

• Undertake a national exercise to map the potential rare earth deposits and evaluate their economic potential. This will be the start of a national enterprise for our mining renaissance.

• Incentivise the upstream mining and extraction of rare earths through partnership between local and global partners who have access to finance, technology and market.

• Incentivise the downstream manufacturing of rare earth-based products to substitute imports and expand exports e.g. those components needed initially in those well established industrial sectors like automotive industry, ICT, consumer/industrial electronics, and palm oil; and in newly established industries like solar power, biotechnology and nanotechnology etc.

• Build technologically competent human capital in Rare Earth Processing and Product Manufacturing, starting with the Lynas facility in Gebeng as a test bed to establish a world class R&D centre on rare earths through partnership of Universiti Malaysia Pahang with foreign universities and R&D companies, in the immediate term from China, and a Rare Earth Vocational Training Institute in Kuantan to man the small and at medium enterprises that are bound to spring up to support our green technology industry.

• Enhance the legal framework to monitor and support the effective functioning of the rare earth industry without compromising on the safety and health of the people and the environment. The AELB Independent Malaysian Regulatory Support Organisation (TSO) is a good start.


57

• Enhance the environment, safety and health aspects of the management of the industrial estates in the country. In line with the world movement in restoration of the environs surrounding industrial estates, especially petrochemical complex, it is recommended that a study be initiated with the Gebeng Industrial Estate. Again Universiti Malaysia Pahang can play a significant part in this initiative.

• Undertake a comprehensive and continual public awareness program and pursue regular engagement with the community on the risks and opportunities of new technology-based business.

The Academy of Sciences Malaysia and the National Council of Professors stand ready to offer our services to help realise the green technology aspirations of Malaysia through the establishment of an indigenous Rare earth industry.


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APPENDIX 1

IAEA Report The ASM/NPC Working Group has reviewed the IAEA Report of the International Review Mission on the Radiation Safety Aspects of a Proposed Rare earth processing Facility (the Lynas Project), we are impressed by the comprehensive analysis of the environmental, health and safety aspects of the Lynas Project. We fully support their eleven recommendations: Technical Recommendations

1. The AELB should require Lynas to submit, before the start of operations, a plan setting out its intended approach to the long term waste management, in particular management of the water leach purification (WLP) solids after closure of the plant, together with a safety case in support of such a plan. The safety case should address issues such as: (a) Future land use (determined in consultation with stakeholders); (b) The dose criterion for protection of the public; (c) The time frame for the assessment; (d) Safety functions (e.g. containment, isolation, retardation); (e) The methodology for identification and selection of scenarios -this must

include the scenario in which the residue storage facility at the Lynas site becomes the disposal facility for the WLP solids;

(f) Any necessary measures for active and/or passive institutional control.

As the safety case is developed, the radiological impact assessment (RIA) for the facility as a whole should be updated accordingly.

2. The AELB should require Lynas to submit, before the start of operations, a plan for

managing the waste from the decommissioning and dismantling of the plant at the end of its life. The RIA and decommissioning plan should be updated accordingly.

3. The AELB should require that the results of exposure monitoring and environmental

monitoring once the plant is in operation be used to obtain more reliable assessments of doses to workers and members of the public, and the RIA updated accordingly. The AELB should also require that dose reduction measures be implemented where appropriate in accordance with the international principle of optimization of radiation protection.

4. The AELB should develop criteria that will allow the flue gas desulphurization (FGD)

and neutralization underflow (NUF) residues to be declared non-radioactive for the


59

purposes of regulation, so that they can be removed from the site and, if necessary in terms of environmental regulation, controlled as scheduled waste.

5. The AELB should implement a mechanism for establishing a fund for covering the

cost of the long term management of waste including decommissioning and remediation. The AELB should require Lynas to make the necessary financial provision. The financial provision should be regularly monitored and managed in a transparent manner.

6. For regulating the Lynas project, the Malaysian Government should ensure that the

AELB has sufficient human, financial and technical resources, competence and independence.

7. The AELB and the relevant Ministries should establish a programme for regularly and

timely updating the Regulations in accordance with the most recent international standards. In particular, regulations pertinent to NORM activities relevant to the proposed rare earth processing facility should be considered to be updated.

Public Communication Recommendations 1. The AELB should enhance the understanding, transparency and visibility of its

regulatory actions in the eyes of the public, particularly those actions related to inspection and enforcement of the proposed rare earth processing facility.

2. The AELB should intensify its activities regarding public information and public

involvement. In particular, it should:

(a) Develop and make available easily understandable information on radiation safety and on the various steps in the licensing and decision making processes;

(b) Inform and involve interested and affected parties of the regulatory

requirements for the proposed rare earth processing facility and the programme for review, inspection and enforcement;

(c) Make available, on a routine basis, all information related to the radiation

safety of the proposed rare earth processing facility (except for security, safeguards and commercially sensitive information) and ensure that the public knows how to gain access to this information.

3. Lynas, as the party responsible for the safety of the proposed rare earth processing

facility, should be urged to intensify its communication with interested and affected parties in order to demonstrate how it will ensure the radiological safety of the public and the environment.


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Follow-up Recommendation 1. Based on recommendations 1-10 above, the Government of Malaysia should prepare

an action plan that: (d) Indicates how the above-mentioned recommendations are to be addressed; (e) Sets out the corresponding time schedule for the actions; (f) Is geared to the possibility of an IAEA-organized follow-up mission, which

will review the fulfilment of recommendations 1-10 above in, say, one to two years' time, in line with other IAEA review missions.


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APPENDIX 2

Academy of Sciences Malaysia The Academy of Sciences Malaysia (ASM) was established under the Academy of Sciences Act 1994 which came into force on 1 February 1995. Fellowship of the Academy of Sciences Malaysia is drawn from scientists, engineers and technologists at the highest levels of their chosen fields of endeavour. To date, the Academy has 202 Fellows, 17 of whom are Senior Fellows. Six Honorary Fellows also grace the Academy’s membership. The Academy’s mission is “the pursuit, encouragement and enhancement of excellence in the fields of science, engineering and technology for the development of the nation and the benefit of mankind”. The Vision of ASM is “to be the Scientific Thought Leader in advancing science for Malaysia to become a contributor to science”. The Mission of ASM is “to pursue, encourage and enhance excellence in the fields of science, engineering and technology for the development of the nation and the benefit of mankind”.

The programmes of ASM are driven by the twin thrusts of “Science for Development” (utilization of science for development, wealth creation and societal well-being) and “Development for Science” accelerating STI for knowledge generation, new discoveries and creating new value-added opportunities for future development). Its shared values are as follows:

• Leadership in Scientific Advancement • Independent Opinion • Credibility in Advice • Timely Response on Issues of National Importance • Excellence in Science, and • Reaching Out to the Public

The current President of the ASM is Tan Sri Ir. Ahmad Tajuddin Ali F.A.Sc.


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APPENDIX 3

Majlis Profesor Negara (MPN) / National Professors’ Council Majlis Profesor Negara (MPN) / National Professors’ Council was established on April 1, 2010 with an initial membership of 1,426 professors from public universities and the permanent secretariat is located at the Ministry of Higher Education. The NPC is responsible for contributing ideas, stratigise and organise plans for the good of the country and the people based on experience and knowledge. Every member of MPN is a “National Thinker”. Roles of the council are;

• to contribute academic expertise and professional inputs in various fields, for use in public advocacy particularly in strengthening basic national policy formulation and implementation of the planned program.

• to contribute advisory services and the new thinking to enhance competitiveness in various fields both nationally and internationally.

• to be a custodian or trustee of academic excellence and professional integrity of the professors in the country.

• to provide opportunities for the professors to contribute their expertise in return for all facilities, assistance and support they enjoyed over the years.

Automatically, all professors are member of the MPN and they are given the freedom to select clusters of interest. There are 14 clusters and each professor can choose more than one clusters from the list;

• Natural Resources and the Environment • Economics and Finance • Governance, Legislation and Public Administration • Information and Communication Technology • Industry and Innovation • Engineering and Technology • Science and Mathematics • Social Development • Education and Human Resource Development • Medicine and Health Science • Politics, Security and International Affair • Pharmacy and Applied Science • History, Heritage and Socio-culture • Agriculture and Food


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APPENDIX 4

Working Group Members and Report Authors (i) Academician Dato’ Ir. Lee Yee Cheong F.A.Sc. (Chairman, International Science

Technology and Innovation Centre for South-South Cooperation under the auspices of UNESCO (ISTIC), Kuala Lumpur, and member of the National Science and Research Council, Malaysia, Senior Fellow ASM, Lead Spokesman)

(ii) Academician Datuk Ir. Ahmad Zaidee Laidin F.A.Sc. (Vice-President Academy of Science Malaysia, Senior Fellow ASM)

(iii) Dr. Ahmad Ibrahim F.A.Sc. (Chief Executive Officer, Academy of Science Malaysia,

Fellow ASM) (iv) Dato’ Amdan Mat Din (v) Prof. Ir. Dr. Lee Sze Wei (Member and Council Member the Institution of Engineers

Malaysia (IEM) (vi) Mr. P. Loganathan (Geologist, Vice-President Institute of Geology Malaysia (IGM),

Member Geological Society of Malaysia (GSM), ASM Staff) The Report was the effort of many contributors beyond those listed here from the Academy of Sciences Malaysia and the National Professors’ Council.

Documents

RARE EARTH INDUSTRIES: MOVING MALAYSIA’S …asmic.akademisains.gov.my/download/RareEarth/RE_Report_English.pdf · Rare Earth Industries: Moving Malaysia’s Green ... Our study