Pensana Rare Earths has selected Saltends Chemicals Park in Hull, which forms part of the Humber Local Enterprise Partnership (LEP), as the site for the UK's first rare earth processing facility in the hopes to create the world's first fully sustainable magnet supply chain.
Saltends Chemical Park. Credit: Miles Mortimer / Shutterstock
Credit: Miles Mortimer / Shutterstock
When completed, the facility will become one of only two producers outside of China - and the only one in Europe - of rare earth oxides used in the manufacturing of powerful permanent magnets.
The rare earth group launched a study into potential sites alongside Wood Group back in October which eventually led to them choosing this location.
The chemical park hosts a cluster of chemicals and renewable energy companies attempting to pave the way for a sustainable future, including Ineos, Nippon Gohsei and Air Products.
The Humber LEP is dedicated to increasing growth in the area and hopes this new investment could help stimulate its economy and put it on the industry map.
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The site is managed by the px Group and is the product of a £500 million (€547 million) investment over recent years. The Group provides a number of utilities such as water, power and waste disposal to allow the company to focus solely on the operational aspects of the facility.
Gerry Grimstone, the UK's Minister for Investment said: “We very much welcome the proposal to establish a fully sustainable rare earth oxide magnet metal processing facility in the Humber region.
"This facility is an important step in the establishment of a permanent magnet supply chain in the UK which could support a range of industries important to building back greener and our Net-Zero ambitions.”
Paul Atherley, chairman of Pensana Rare Earths said: “The Saltend Chemicals Park offers an exceptional range of services allowing us to plug into power, water, reagent supplies and services and to recruit a highly-skilled local workforce at internationally competitive rates.
It is very clear that it is no longer acceptable for British and European companies to import the raw materials critical to the Green economy from unsustainable sources.
The Saltend facility has the potential to become a world-class producer of rare earth oxides and to help establish a sustainable supply chain for the manufacture of powerful permanent magnets critical for the offshore wind and electric vehicle industries in the UK and Europe.”
The company is looking to expand into the Longonjo mine in Angola in the first quarter of 2021 as part of its first rare earth mine in over a decade.
The mining and supplying of rare earth minerals has become heavily regulated and moderated in recent years, with the ultimate end goal of increasing sustainability in the mining sector.
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The mining sector has long faced accusations and lawsuits connected with the destructive effects it has on the environment and local ecosystems.
Anglo-Australian mining giant Rio Tinto has been in a few scuffles this year, from a human rights crisis over the extreme pollution on the Papua New Guinea Island of Bougainville (directly responsible for a local civil war) to its CEO being let go following an explosion that destroyed a 46,000-year-old cave system sacred to the Aboriginal population.
BHP is also facing controversy following a British court ruling after a tailings dam at their iron ore mine in Mariana, Brazil, suffered a critical failure and flooded the entire area, affecting as many as 200,000 people.
The mining industry has made great strides in moving towards sustainability in recent years.
Anglo-American has set itseklf a target of becoming completely climate-neutral by 2040 in line with many companies and governments setting similar targets to combat climate change before damage to the environment becomes irreparable.
LKAB has also made an investment into carbon-free iron ore at the record-shattering cost of $47 billion (€39.5 billion).
Wood Group and Pensana are working closely with px Group to finalise the scoping study of the proposed facility which is expected to highlight the international competitiveness of the location particularly in relation to power, labour and reagents costs.
Detailed discussions with local councils and experienced planning agents have confirmed that subject to a final investment decision and funding being available, the necessary planning permission for the proposed UK facility can potentially be obtained with sufficient time for it to be constructed contemporaneously with the Longonjo mine development.
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