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(Kitco News) - Western governments need to invest more in the rare earth sector, said Defense Metals CEO Craig Taylor.
On Tuesday Taylor spoke to Kitco.
Defense Metals (TSX-V: DEFN) is advancing its 100%-owned Wicheeda rare-earth project in central British Columbia. Last year the company completed its preliminary economic assessment showing a NPV post-tax (@ 8%) of $397 million and an internal rate of return post tax at 18%.
The company is advancing to preliminary feasibility study.
"We should be finished that first quarter of 2024, and then we will be one of the very few rare earth projects in North America and really in the world that's got to pre-feasibility and then feasibility level," said Taylor.
Defense is advancing to PFS with a pilot plant, expected to be completed this year. When the project becomes a mine, the company is targeting about 10% of current global rare earth elements production.
Taylor appreciates the investment and attention by Western governments on rare earths, but he says it is not enough.
"China has basically weaponized rare earths," said Taylor. "That was always a fear but I'm hoping that propels [governments] to put more money into the sector."
Energy transition will support higher rare earth prices, said Taylor. He drew a parallel with MP Materials which produced more that 38,000mt of rare earths in 2020 from its Mountain Pass Mine.
"Demand is staggering," said Taylor. "We have to double production in the next decade. That's the equivalent of bringing one Mountain Pass project online every year for the next 10 years. In North America the only two viable projects are us and Mountain Pass. There's a need for feed, and I think we're part of the solution."
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