Although the rare earth market is experiencing a challenging period, with lower prices acting as a drag on the sector, many countries are still maintaining a bullish outlook and are seeking to ramp up production.

While China, Australia5 and the US continue to dominate rare earth element (REE) industry column inches, more investors are casting their attention to developing nations and the potential production opportunities that they hold. India is fast becoming the center of attention in this regard as it becomes more vocal about its intent to enter and compete within the REE sphere.

Processing plant running by 2013: According to a local media report6, India has set itself the target of having a monazite processing plant with a capacity of 10,000 tonnes up and running by December 2012. Monazite is a mineral that contains rare earth metals such as cerium, lanthanum and thorium. The facility will be based in Odisha’s Puri district, the second region to show potential following the discovery of REE deposits in the coastal areas of the Ganjam district.

Meanwhile, Indian Rare Earths (IREL), a government-owned firm, has been awarded the rights to mine REEs in Odisha after a survey by the Atomic Minerals Directorate for Exploration and Research revealed that it contains deposits of REEs.

“The Odisha plant could be commissioned by December. We will carry out dry runs, and hopefully, start production early next year,” Mineweb quoted R.N. Patra, chairman of IREL, as saying. The plant’s production would constitute 4 percent of current global REE production.

Patra outlined that the plant will cost $25 million and will be able to handle 2,250 tonnes of REEs at any given time. The refined product will be separated at IREL’s Aluva facility in Kerala for domestic consumption, and the remaining quantities will be exported. No official estimates in relation to India’s export capabilities have been outlined yet.