Novare to fund $100M critmin refinery, Africa’s first

ReElement Technologies, a subsidiary of American Resources (NASDAQ: AREC), has partnered up with Johannesburg-based investment firm Novare to build a $100-million (C$70-million) critical and rare earth elements refinery.

Under the partnership, ReElement is to contribute its proprietary technology to produce high-purity lithium carbonate, rare earth oxides and other critical minerals, along with project management expertise, the companies said in a Feb. 5 news release.

Novare is to fund the investment and manage the operation. Development is expected to begin in this year’s second half.

The partnership represents a “pivotal step toward” establishing Africa’s first critical and rare earth elements refining facility, they said.  The venture aims to produce high-purity elements for advanced technologies in the commercial and defence sectors, ReElement said.

Shares in American Resources fell 1¢ to 65¢ apiece in New York on Tuesday morning as wider stocks dropped after U.S. President Donald Trump announced global tariffs on steel and aluminum. The company has a market value of $50.5 million. 

Industrial development

“This partnership reflects our commitment to innovation in the critical minerals sector,” Ben Kincaid, CEO of ReElement Technologies’ African unit, commented in the release.

“Together with Novare, we are bringing innovative refining technology to the region, enabling nations to enhance and capture the value of their natural resources and catalyze industrial economic development on the continent.”

Novare Group CEO Ola Leepile added the partnership ‘”aligns seamlessly with our vision of being an impactful investor by establishing Sub-Saharan Africa’s first battery and critical minerals manufacturing facility.”

ReElement has developed chromatographic, multi-mineral, multi-feedstock technology, which it says can separate, purify and refine rare earth and critical elements in a way that’s scalable, cost effective and environmentally friendly.

The technology is one of only two of its kind in the United States, said Mark Jensen, CEO of American Resources and ReElement Technologies.