Global reliance on China for heavy rare earth elements (REEs), including terbium, poses significant risks to high-tech supply chains. REEs, 17 elements with unique magnetic, luminescent, and electrochemical properties, are essential in electronics, renewable energy, and defense technologies.
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Heavy rare earths like dysprosium and terbium improve magnet performance at high temperatures, enabling miniaturized yet powerful devices. China’s dominance, controlling 70% of global extraction and 90% of processing, stems from decades of strategic planning, investment in processing technology, and classification of REEs as strategic resources.1-3
While other nations overlooked these minerals, China built expertise across the supply chain. Traditional rare earth processing generates significant environmental impacts, including large volumes of toxic waste and acidic wastewater. In April 2025, China tightened control by adding seven REEs, including terbium, scandium, and yttrium, to its export control list following United States (U.S) tariffs. This heightened global competition over critical minerals and threatened the REE supply to non-Chinese manufacturers. As a result, diversifying supply chains has become a pressing strategic and environmental necessity.1-3
The Elazac Process
The Elazac process is a revolutionary technique developed by the Morgan family in Western Australia over the past 15 years. Unlike conventional methods that struggle with complex ores and fine particles, this novel process efficiently extracts gold and other valuable metals like platinum group metals (PGMs) and rare earths from poly-metallic ores and mining tailings. It can recover precious metals undetectable by traditional assay and extraction methods.4-7
The proprietary multi-stage method is designed to prepare and extract metals from ore. It begins with an acid wash to remove contaminants from the ore, a critical first step in preparing the material for further processing. The second stage involves a smelting and oxidation sequence, reducing and oxidizing the metal. This is followed by the final stage, gold recovery, which uses a two-stage process involving acid oxidization and standard gold smelting to recover the gold into a bullion form. The products are meticulously analyzed at each stage using techniques like Aqua Regia Digestion, Cyanide Leach, and X-ray fluorescence to ensure the process's effectiveness.5
The primary difference between the Elazac process and conventional methods is its effectiveness in "parting" precious metals from complex ores containing a mix of elements like silicon, iron, magnesium, and aluminum. While traditional methods like fire assay/cyanide leaching may fail to detect or recover fine gold particles, the Elazac process has been proven to extract these previously missed quantities successfully.
This resulted in significantly higher yields of gold and other precious metals from low-value ores. Technology’s ability to recover these finer particles is a breakthrough, unlocking vast quantities of previously uneconomical gold.5-7
Initially developed for gold, the modified version of the Elazac process has been successfully adapted for other applications. It has demonstrated its ability to extract platinum and other PGMs from the same ore samples. Moreover, the process has been used to extract REEs like terbium after the initial gold extraction.
This adaptability displays the technology's broad potential to change how various metals are processed and recovered, offering a more cost-effective solution for various mining operations. The Elazac process, with its proven success in extracting previously unrecoverable precious and rare earth metals, represents a significant technological advancement in mineral processing.1,5
Impact for Australia
China’s April 2025 export curbs on REEs have reshaped global markets, creating sharp price differences between Chinese and international buyers. This has accelerated investment in non-China REE supply chains, especially in countries like Australia, which is emerging as a leading player in heavy rare earths, particularly terbium.1,2,8
Australia is well-positioned to benefit from this geopolitical and economic shift. With several companies advancing innovative approaches to REE extraction, the country is strengthening its role in the critical mineral supply. Projects like Victory Metals’ North Stanmore clay-hosted deposit showcase low-cost, low-energy processing methods that reduce capital intensity and environmental impact while delivering high concentrations of strategic heavy rare earths like dysprosium and terbium.1,2,8
Complementing this is Haoma Mining’s Elazac Process, a novel treatment method that has demonstrated high terbium recovery rates at pilot scale. Commercializing could significantly lower production costs and accelerate supply timelines, easing global terbium shortages. While refining capacity remains a constraint, Australia could export concentrates to allied refineries in the U.S. or develop domestic capabilities.1
As global demand for REEs used in advanced technologies surges, Australia’s growing extraction and processing capacity offers a viable, secure alternative to Chinese dominance. With the right investment and infrastructure, the country could establish itself as a reliable, strategic supplier of heavy rare earths, reinforcing its importance in global critical minerals markets and contributing to the diversification and resilience of international supply chains.1,2
Wider Implications
China’s halt on terbium exports has exposed key vulnerabilities in global supply chains, particularly for the US, where over 80,000 defense components depend on REEs, including terbium and dysprosium. These elements are indispensable due to their unique magnetic properties and thermal stability, vital for electric vehicle motors, wind turbines, missile systems, and advanced aircraft like the F-35. With no viable substitutes, securing non-Chinese supply has become a strategic priority for defense, electronics, and green energy sectors.2,8
As prices for terbium outside China have risen sharply in 2025 due to scarcity, manufacturers and governments are seeking stable, transparent sources. With its emerging REE extraction capabilities and novel technologies like the Elazac Process, Australia has a growing opportunity to fill this gap. While the U.S. explores options in Ukraine, those resources remain undeveloped and capital-intensive. In contrast, Australia’s potential for near-term production offers a more imminent and reliable alternative.1,8
Ensuring rare earths remain separate from broader trade disputes like tariffs will be critical to maintaining Australia’s role as a trusted supplier. By strengthening supply security for allied nations, Australia can reinforce its strategic partnerships while supporting the global transition to sustainable technologies and advanced defense capabilities.1
Next Steps
The extraction process is currently in the pilot stage, showing strong early results that exceed industry benchmarks. While technology is generating initial cash flow from gold, further validation is needed before full-scale deployment. If successfully scaled, commercial production of terbium concentrate could begin within the next 12-18 months.
However, regulatory, environmental, and stakeholder hurdles may delay progress. Government support may be required to accelerate development and secure critical mineral supply chains.1
References and Further Reading
- Gottliebsen, R. (2025) With minerals in huge demand, Australia must exploit its terbium breakthrough [Online] Available at https://www.miningday.com.au/with-minerals-in-huge-demand-australia-must-exploit-its-terbium-breakthrough/ (Accessed on 26 August 2025)
- Zadeh, J. (2025) Building a Global Rare Earths Supply Chain Beyond China’s Dominance [Online] Available at https://discoveryalert.com.au/news/rare-earths-supply-chain-beyond-china-dominance-2025/ (Accessed on 26 August 2025)
- Baskaran, G., Schwartz, M. (2025) The Consequences of China’s New Rare Earths Export Restrictions [Online] Available at https://www.csis.org/analysis/consequences-chinas-new-rare-earths-export-restrictions (Accessed on 26 August 2025)
- Haoma Mining NL [Online] Available at https://arc-haoma.s3.amazonaws.com/uploads/2016/07/HaomaASXOct15_2015.pdf (Accessed on 26 August 2025)
- Kitchener Mining NL [Online] Available at https://gsq-prod-ckan-horizon-public.s3.ap-southeast-2.amazonaws.com/Report/124949/Document/1308153/EPM17832_2021_Surrender_Vers1_5-7-21.pdf (Accessed on 26 August 2025)
- Haoma Mining NL [Online] Available at https://openbriefing.com/AsxDownload.aspx?pdfUrl=Report%2FComNews%2F20110801%2F01203164.pdf (Accessed on 26 August 2025)
- Haoma Mining NL [Online] Available at https://haoma.com.au/wp-content/uploads/2016/07/Haoma_Qtrly_Q1_Sep14.pdf (Accessed on 26 August 2025)
- Charles, R. (2025) China's Export Curbs Deepen Global Rare Earth Divide: Western Supply Chains Gain Investor Premium [Online] Available at https://www.cruxinvestor.com/posts/chinas-export-curbs-deepen-global-rare-earth-divide-western-supply-chains-gain-investor-premium (Accessed on 26 August 2025)
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