$300M rare metals refinery in pipeline for Geismar

Canadian firm Avalon Rare Metals Inc. announced today that it has selected Geismar as the site for a $300 million rare earth elements separation plant and refinery. However, pending a feasibility study and final investment decision to be made next year, it’s not yet known when construction will begin on the plant. LED says it began working with the Toronto-based company in early 2011 to identify potential sites for the refinery, with assistance from BRAC and the Ascension Economic Development Corp. A feasibility study is under way, and should be complete in the second quarter of 2013. At that point, Avalon will announce its final investment decision and complete project financing, LED says. The project would create 175 direct new jobs and nearly 300 indirect jobs, by LED’s estimate. At the plant, Avalon would refine 10 rare earth elements for uses such as providing color in flat-screen TVs and magnets essential for hybrid and electric vehicles. The elements would be shipped via rail to the Geismar plant from Avalon’s mining and processing operations in the Northwest Territories of Canada. China currently has a lock on about 95% of the globe’s rare earth supply, and worldwide inventories have tightened since China began reducing exports in 2010. Avalon has an option to purchase 150 acres for the Geismar plant.