European Resources Moves Korsnäs Rare Earths Toward Customer Testing With ANSTO Deal
Key Takeaways
- ANSTO Minerals began Stage Two on 1 October 2026 to produce a lab-scale MREC sample from the historical Korsnäs stockpile, with initial small-scale work targeted for Q4 2026.
- Stage One calcite removal lifted combined magnet rare earth extraction from 83% to 92% and TREY extraction from 86% to 93%.
- Those are laboratory leach extractions, not recoveries into finished MREC, and apatite-hosted magnet rare earths still need more work.
- The bench-scale batch will include uranium removal, cerium-removal tests and a certificate of analysis covering elemental and radionuclide composition.
- No customers, offtake agreements or costs are disclosed, so the sample is a path to commercial talks rather than evidence of them.
ANSTO to produce Korsnäs MREC sample under Stage Two agreement
European Resources (ASX: ERE, FSE: ER3) has signed a Stage Two agreement with ANSTO Minerals to produce a lab-scale mixed rare earth carbonate (MREC) sample from the historical Korsnäs lanthanide concentrate stockpile (LnCS). MREC is the intermediate product that sits between laboratory extraction and something a downstream processor can actually test.
Stage Two commenced on 1 October 2026. Initial small-scale MREC test work is targeted for completion in Q4 2026, followed by a larger bench-scale batch for product qualification and potential customer evaluation.
For investors, the step matters because it moves the Korsnäs project in western Finland from laboratory extraction toward a product that downstream processors can assess. ANSTO Minerals is the minerals business of the Australian Nuclear Science and Technology Organisation.
Jason Beckton, Managing Director
“Our next objective is to put a Korsnäs MREC sample in the hands of potential customers. Producing and characterising that material would give us a firmer basis for product qualification and commercial discussions…”
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Stage One results underpin the new program
The new program builds on Stage One results reported on 19 August 2026. Removing calcite before acid baking and water leaching lifted extraction across the key measures.
| Metric | Before | After |
|---|---|---|
| Combined magnet rare earth extraction | **83%** | **92%** |
| Total rare earths plus yttrium (TREY) extraction | **86%** | **93%** |
Individual extraction reached 94% for praseodymium and 92% for neodymium. Terbium and dysprosium improved to 69% and 66% respectively.
The earlier ANSTO extraction work at Korsnäs first established the 83% combined magnet rare earth extraction baseline, which the calcite removal step has since lifted to 92% and which the Stage Two MREC program now builds on.
There is an important caveat. These are laboratory leach extractions, not overall recoveries into a finished MREC product, and further work is required to improve recovery of magnet rare earths hosted in apatite and to optimise the process.
The agreement advances the staged approach foreshadowed when ANSTO was engaged in August 2025: establish extraction performance, then progress to purification and a first mixed rare earth product. No new metallurgical results are reported in this announcement.
What is MREC and why does it matter to investors?
MREC is an intermediate product that is later separated into individual rare earth products. Think of it as the stepping stone between a leach solution in a lab and the separated oxides a manufacturer buys.
Physical samples would allow potential processors to assess rare earth distribution, impurity levels and compatibility with their separation circuits. Those results would support product qualification and more substantive discussions with potential customers and offtake partners.
The target magnet rare earths are neodymium, praseodymium, dysprosium and terbium. They are used in high-performance permanent magnets for electric vehicles, wind turbines and industrial applications.
The company is clear on the limits: the commercial objective is to establish the specifications and processing performance required for a saleable product, but commercial production and customer acceptance remain to be demonstrated. No customers, offtake agreements or costs are disclosed.
What does the two-step Stage Two roadmap involve?
Stage Two will develop impurity-removal and rare earth precipitation conditions in two sequential steps:
- Initial small-scale MREC production: ANSTO will use the Stage One extraction route to generate a rare earth solution, remove impurities and produce a small preliminary MREC sample. Chemical analysis will establish its composition and guide the next round of testing.
- Larger bench-scale MREC production: A larger batch will apply the preferred conditions and additional purification, including uranium removal. Cerium-removal tests will also be undertaken, with the preferred approach applied if results are favourable, as reducing cerium is intended to increase the relative proportion of magnet rare earths. ANSTO will characterise the elemental and radionuclide composition and prepare a certificate of analysis.
Timing is indicative, and later-stage timing will depend on test results. Product quality, quantity and suitability for individual customers will also depend on those results.
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How does the stockpile feed fit the wider Korsnäs strategy?
The LnCS was produced from the Korsnäs hard-rock deposit during Outokumpu’s historical operations between 1965 and 1972. Concentrate is already held at ANSTO, so purification and MREC tests can advance while the company develops a beneficiation route for fresh hard-rock material.
Korsnäs has a previously reported Inferred Mineral Resource of 15.4Mt at 1.00% TREO, using a 0.5% TREO cut-off, announced on 16 April 2026. The estimate covers in situ mineralisation and excludes material already mined and processed into the LnCS.
The ANSTO work complements beneficiation studies by the Geological Survey of Finland’s GTK Mintec facility and the University of Oulu under the EU-funded Rare Earth and Magnets Hub for a Resilient Europe (REMHub) program. High-gradient magnetic separation (HGMS) and flotation tests are progressing at GTK Mintec to develop a new concentrate from Korsnäs hard-rock material.
The objective is to integrate that work with the downstream ANSTO route to produce MREC from newly generated Korsnäs concentrate. For you as an investor, this shows how the two workstreams are intended to connect.
European Resources’ strategy is to develop a potential source of rare earth feedstock within Europe. Further optimisation, scale-up and economic assessment will be required to establish a commercially viable process.
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