World demand for rare earths sparks exploration in Nunavut, Nunavik

This map shows the location of the Forum Uranium’s Nutaaq property, which appears to be rich in rare earths, sought after for use by industry in cars, batteries and other products. (IMAGE/ FORUM URANIUM)

The presence of rare earths in Nunavut and Nunavik has started to draw the attention of mineral exploration companies that see a chance to satisfy the world’s hunger for the metallic elements found in everything from cellphones to electric cars.

Forum Uranium Corp. announced today that it’s mobilizing a field crew to its Nutaaq rare earth property, 13 kilometres southeast of the Kiggavik uranium property near Baker Lake, because results show promising rare earth deposits there.

The rare earth deposits on Forum’s Nutaaq property lie close to the surface, so they could be mined using “low cost, bulk mineable extraction methods,” the company said in an June 23 news release.

Earlier this month, Azimut Exploration Inc. reported “excellent results” from its search for rare earths on its Diana property, 40 kilometres northwest of Kuujjuaq.

You probably wouldn’t recognize the names of 17 rare metallic elements, like yttrium, erbium, terbium and dysprosium, which these companies are after.

But rare earths, also called REE’s or rare earth elements, are commonly used in flatscreen televisions, laptops, iPod earbuds and digital cameras.

So-called “heavy” rare earth metals, used to produce heat-resistant magnets found in wind turbines, computer hard drives, rechargeable batteries and electric motors are particularly in demand by industry.

Overall, about 30 per cent of the world’s consumption of rare earths is related to cars, a figure that could grow as more consumers shift to hybrid vehicles, which typically contain more than 27 kilograms of rare-earth product.

China now produces most of the world’s rare earth supply.

But in recent years the Chinese government has imposed tariffs and export restrictions on rare earth buyers.

So mining companies have been scouting for new sources of rare earths in Australia, the United States, Brazil, South Africa, and Greenland, where a large deposit of rare earth minerals was discovered in Kvanefjeld in near Narsaq.

“Kvanfjeld has the potential to meet the world’s rapidly growing demand for rare earths, and in doing so, can become a major contributor to the Greenland economy for decades to come. At Greenland Minerals and Energy, we believe that Kvanefjeld will be the start of a truly world class mining district and can be developed in a responsible, environmentally conscious manner, to become one of the world’s premier source of Rare Earth Elements,” says the company about the deposit. Its slogan: “specialty metals for a greener world.”

If Forum’s Nutaaq property ever goes into production, Nunavut Tunngavik Inc. stands to make some money.

NTI will receive a two per cent smelter royalty from Nutaaq, according to the June 23 news release.

Thid royalty would be that percentage of the revenue generated by the mine by selling its rare earths, minus production expenses.

However, there’s an environmental risk from mining and refining rare earths because some tailings can be radioactive and toxic acids are required during the refining process.

(With files from Postmedia News)