Tronox Holdings plc (Stamford, Connecticut), an integrated manufacturer of titanium dioxide (TiO2) pigment, has announced the signing of a cooperation and investment agreement with JX Advanced Metals Corp. (JAXM; Tokyo, Japan) to advance the development of its rare earth and critical minerals business to support growing demand for these minerals in semiconductor, advanced electronics, robotics, automotive, defense, and other high-technology applications.
Under the signed agreement, Tronox and JXAM will fund on a 50/50 basis approximately $32 million to support a definitive feasibility study for Tronox’s previously announced proposed rare earth cracking and leaching facility (Cracking Plant) in Australia and a pre-feasibility study for a proposed rare earth oxide refinery (Refinery) in the United States, as well as development of a US-based pilot facility capable of producing initial quantities of high-purity rare earth oxides. Tronox and JXAM anticipate that the joint investment in feasibility work for the Cracking Plant and Refinery will demonstrate the technical, economic, environmental, and commercial viability of establishing an integrated rare earth processing and refining platform. The agreement also contemplates joint development of other critical minerals and materials from Tronox’s mineral resources, including niobium (Nb), scandium (Sc), zirconium (Zr), and hafnium (Hf), all of which are critical to the economic and national security of the United States and Japan.
The joint cooperation and investment agreement with JXAM represents a key milestone for Tronox in the development of its rare earth supply chain that could enable significant value creation. The agreement reflects the shared commitment of Tronox and JXAM to establish new capabilities across the critical mineral value chain while supporting the economic security and industrial competitiveness objectives of the United States, Australia, and Japan, including the Pax Silica Initiative.
The Companies plan to locate the Cracking Plant in the Rockingham Industrial Zone in Western Australia, approximately three kilometers south of Tronox’s Kwinana TiO2 pigment plant, enabling shared services and other resources that can be leveraged due to Tronox’s extensive footprint and infrastructure in Australia, where it employs more than 1,200 people at its existing operations. The Companies currently expect to locate the Refinery on Tronox-owned land adjacent to its existing Hamilton, Mississippi TiO2 pigment facility, where it employs more than 400 people. The site has access to abundant and low-cost power, existing utilities, reagents, and substantial infrastructure that Tronox expects would provide meaningfully lower refining costs versus a typical new entrant.
Together, as currently contemplated, the two sites would aim to produce up to 10,000 tons per year of total rare earth oxides. Tronox’s mines have an attractive mineralogy mix of light and heavy rare earth refinery feedstock, including neodymium (Nd) and praseodymium (Pr), dysprosium (Dy) and terbium (Tb), samarium (Sm), gadolinium (Gd), and yttrium (Y).
Tronox’s Chief Executive Officer John D. Romano commented, “This strategic agreement represents an important milestone in Tronox’s efforts to leverage our unique mineral sands resources and hydrometallurgical and chemical processing expertise to participate in the rapidly growing critical minerals value chain. By combining Tronox’s mining resources and reserves and project development capabilities with JXAM’s advanced refining and materials expertise, we are creating a pathway toward a secure, reliable, and globally competitive source of high-purity rare earth oxides and other critical minerals.”
Hayashi Yoichi, President and Chief Executive Officer of JXAM, added, “Rare earths are essential to the advanced materials at the core of our growth strategy, and diversifying and strengthening their supply chain is an important strategic priority for JX Advanced Metals. Through this joint study, we will bring together Tronox’s mineral resources and mineral separation capabilities with our technologies and expertise in nonferrous metals smelting and recycling to evaluate the potential of a rare earth processing business in Australia, the United States, and other locations. Working in close partnership and leveraging our complementary strengths, we aim to strengthen the supply chain supporting our advanced materials businesses and create new business opportunities that contribute to the sustainable growth of both companies.”
The cooperation and investment agreement contemplates that if the Cracking Plant and Refinery engineering studies demonstrate technical and commercial viability, Tronox and JXAM will explore the formation of a joint venture to fund, build, and operate the assets. The Companies have engaged with several government-backed financing institutions, including the US Export-Import Bank, Export Finance Australia, relevant Japanese financial institutions and organizations, and other government-supported and commercial lenders regarding potential funding, which could represent a significant portion of the project’s capital structure.
Mr. Romano concluded, “The strategic importance of a diversified and secure rare earth supply chain has never been greater. As the proposed projects would contribute to strengthening supply chains in the United States, Japan, and Australia, we also hope to receive support from the relevant authorities and other stakeholders in each country.”