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Sovereign Metals estimates that adding rare-earth recovery to Kasiya would require about $29 million in additional investment.
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The company expects the project to produce about 2,626 tonnes a year of monazite-based rare-earth concentrate, generating a pre-tax NPV of roughly $722 million.
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The addition could lift Kasiya’s total NPV to about $2.9 billion, while positioning the project to supply the US and strategic allies seeking alternatives to Chinese critical-mineral supply.
Rare-earth production has now reached a new stage at Kasiya, alongside the graphite and rutile output initially planned for the project. On Wednesday, September 9, Australian operator Sovereign Metals released a scoping study for the rare-earth component. The study estimates that the company would need about $29 million in additional investment to recover mineral resources containing 69,000 tonnes of monazite.
According to the definitive feasibility study (DFS) that Sovereign Metals published in April, Kasiya could become a major mine with annual production of 222,000 tonnes of rutile and 275,000 tonnes of graphite over an initial 25-year mine life. The company estimates the project’s initial capital expenditure at $727 million.
Rare earths as a by-product
However, Sovereign Metals has also spent several months assessing the potential to recover rare earths as by-products. The company identified this potential in the monazite contained in the tailings generated by graphite and rutile processing.
The latest study now provides an initial economic assessment of that opportunity. Sovereign Metals plans to add a dedicated monazite recovery and separation circuit to the existing development plan, together with facilities to produce a rare-earth concentrate.
The company would not need to develop a new mine or add a new upstream processing circuit. This configuration would limit additional capital requirements to about $29 million.
In return, Sovereign Metals estimates that Kasiya could eventually produce about 2,626 tonnes a year of rare-earth concentrate (REC) from monazite. The company estimates that this output could generate a pre-tax net present value (NPV) of about $722 million over more than 23 years.
The rare-earth component would therefore increase Kasiya’s total NPV to about $2.9 billion, including the graphite and rutile operations.
A strategic critical-minerals project
Beyond the economic potential, rare-earth production gives Kasiya a broader strategic role. Sovereign Metals has renamed Kasiya a critical-minerals project to reflect the diversification of its planned output.
The move also aligns with the company’s strategy to make the United States and its strategic allies priority markets for future Kasiya products. Washington continues to seek alternative sources of critical minerals outside China, which dominates several segments of global rare-earth supply chains.
According to Sovereign Metals, the planned production would cover five of the seven rare earths subject to Chinese export restrictions, including dysprosium, terbium and yttrium.
However, the company still needs to complete important technical work before it can treat the rare-earth operation as a confirmed component of Kasiya.
The scoping study does not establish the definitive viability of the rare-earth project. Its initial estimates still rely on mineral resources, which must notably be converted into ore reserves to confirm the component’s economic potential.
Sovereign Metals therefore plans to continue the studies required to integrate rare-earth recovery into Kasiya’s definitive development plan. The company expects to complete a pre-feasibility study in 2027.
Aurel Sèdjro Houenou
