Ferro-Alloy Resources Ltd. (LSE: FAR) has signed a memorandum of understanding with Maglut Heavy Industries Inc., a California-based rare earth separation company founded in 2025, to explore the supply of rare earth concentrate derived from its existing vanadium processing operations.
Under the MoU, Ferro-Alloy would supply up to 1,000 tonnes per annum of mixed rare earth concentrate as a by-product of vanadium processing at its Balasausqandiq deposit in Kazakhstan. The parties are also evaluating an intermediate project that could produce up to 100 tonnes per annum, contingent on securing a minimum price-floor, take-or-pay offtake agreement and non-recourse funding.
The mixed rare earth concentrate would be produced from residual leach solutions generated after vanadium extraction at the site. Maglut is developing a chromatography-based platform designed to separate and refine high-purity rare earth elements for the U.S. market.
Initial test work on a Balasausqandiq ore sample indicated the potential to separate all 16 rare earth elements present, specifically yttrium, neodymium, praseodium, dysprosium and terbium. Purities exceeding 99.0% were obtained for economically important rare earth elements within two separation stages, while purities in excess of 99.999% were achieved within five stages. Average overall separation recovery was approximately 91.4%.
Ferro-Alloy Resources has engaged SRK Consulting (UK) Ltd. to update its existing mineral resource estimate to include yttrium and potentially other rare earth elements.
"Securing reliable, non-Chinese supply of rare earth elements has become a strategic priority for the United States and its allies," said Nick Bridgen, chief executive of Ferro-Alloy Resources.
The MoU is non-binding. All commercial, technical and other terms remain subject to definitive agreements, with further test work, process optimization, engineering and economic evaluation required before any commitment is final.
