Base Resources and Energy Fuels have reached a binding agreement for Energy Fuels, the US-based uranium and vanadium producer, to acquire 100% of the issued shares in Base Resources.

The aim is to establish “…a global leader in the critical minerals sector” with a focus on rare earth elements, uranium and heavy mineral sands production “…and a clear strategic development pathway”.  

Energy Fuels is the largest producer of uranium in the USA, with its 100% owned White Mesa Mill the only operating conventional uranium and vanadium mill in the USA.  Feed is sourced primarily from Energy Fuels’ mines in Utah, Colorado, Arizona and New Mexico, and through ore purchases or toll milling arrangements with third parties in the region.   Vanadium production at White Mesa is sporadic, depending on prevailing market conditions.   

Base Resources is an Australian-based, African-focused, mineral sands producer which operates the Kwale Operation in Kenya which produces a suite of mineral sands products, namely ilmenite, rutile and zircon. It is also developing the Toliara Project in Madagascar with potential to also produce a monazite mineral concentrate for recover of rare earth elements.  

The White Mesa mill is one of a handful of facility with capability to extract REEs from monazite feedstock and produce separated REE products in North America.  Since 2021, White Mesa has successfully produced commercial quantities of REE products from third-party monazite feedstock. Energy Fuels is in the process of commissioning a dedicated REE separation facility (Phase 1), enabling production of NdPr oxide (expected completion in H1 2024). 

Phase 1 will have capacity to process 8-10ktpy of monazite, producing up to 1,000tpy NdPr oxide.   Phase 2 (2026/27) will increase monazite processing capacity to 30ktpy, producing up to 3,000tpy NdPr oxide.  Phase 3 (2027/28) is planned to add heavy REE separation production, including Dy and Tb oxides.