welcome to CEO insights I'm Marilyn dezman with investing News Network my guest this episode is Lloyd Kaiser CEO of dy6 medals Lloyd is providing his insights on the diversification of Supply chains for heavy rare Earths to Aid Global energy transition goals hello Lloyd Hi Marilyn thank you for having me yes great to have you so I want to get your insights on why diversification is important why it's an important conversation when you know we need to have in when it comes to rare Earths so look just just to sort of have


some clarity so that there there's a number of rare earth projects in southern Mala or in Malo um they're not all focused on heavy R so we talk about Rare Earth you know we have a mix of rare earth oxide products um they might be light rare or they might be heavy rars um so there's two projects one that's been in development in malow for some time um it's more library is focused and there's another one that's essentially 40 kmet west of one of our prospects um and that's also


a light so um the prospects that we have in southern maloi are more focused on heavy rare Earths um and so look I think globally everyone has been for some time been focused on the magnet RAR so the magnet rers are the r that are probably priority for the world to sort of transition to this Grand energy transition for renewable energy and immobility um so there has been a lot of focus on mdpr need pres use light R but you also need for electric traction Motors um heavy rares dis brosi and turum so with our our projects that we


have in the low um we're looking to develop of course um them into uh a project that would produce heavy Rare Earth and probably over the last set of four to five years we've actually seen in globally a shrinking supply of heavy wees because 9 90% 80 to 90% of all Supply is from China and so we just some of the analysts have just had a look at some of the recent quotas or a quota it's like a rare quter that comes from um China just was released about a week ago just some the analysts are


saying that the heavy Rare Earth portion from Mining and and processing in China has been shrinking and there probably has been no change for six years so in the last two years it actually Mining and separation of heavy rares has reduced by 30% and there is a there is a pro it's Pro problematic in the sense that the Heavy R is is very key and fundamental to the high temperature magnets used in those electric vehicles WP and hyp electric vehicles and other applications as well you know in any time um China


could just send turn off the Taps and 50% of all heavier r that are supplied from China actually come from mear um so come from Over The Border um so what we're actually seeing is a strategy by um China to reduce its Mining and process not so much process of the mining l in the southern regions for heavy rares and we'll see more increase from China to look at opportunities overseas um to invest in and to look and they're looking to obviously import Ras so look verification for the newus


market you know these are the the guys in Europe and the US and Korea in the automotive industries that are trying to go from combusting Cars to electric vehicles they need they need heavy Rare Earth they need mdpr you know there's there's a few groups that are doing some good things but there's not enough going on um that we do we do we ask seeing obviously support from the governments um Japan's Got a very reasonable supply chain always got good government support Korea is starting to do the same the US


and see the government's getting more involved um even the Australian government been put funds towards everywhere else so you you know I think thei is going to be well-placed um to be part of that supply chain part of that diversification um it's a good jurisdiction um I know there's a question coming up around that so I sort of jump into it in further yeah so let's talk a bit more about that um sort of diversification efforts and you know what the different governments are doing uh as you


mentioned to you know reduce Reliance on or reduce dependence on China for for uh these rare sources and then you know at the same time boost their own resources are are the countries doing enough in in your opinion are they doing enough to the development of these new sources whether domestically or just in more stable jurisdictions look I think there is some activity I mean the I've been in the rare industry for about 10 years um so I know a lot of inuse groups that are using whereas particularly in Europe and


the US and Korea they are interested in sourcing or diversifying whereas there is some government support but I think there's also not enough all or the timing spend too much time in discussion about how we'll go about sourcing where else or providing that independency from from China um Europe probably spends a l has a lot of funds to do a lot in this area but they spend a lot more time internally discussing about other ways to provide that security of Supply to recycling everything so I think um the


governments are not doing enough particularly for heavy rare which is very key component to to that magnet um but we're seeing an improvement I think over the years of that um activity from the government and from larger organization but there needs to be more investment from those groups into the exploration companies so so what you have is actually a lot of exploration companies that are do exploring for rares and developer whereas were in the smaller end of the market not the bigger players in the


market we I see some bigger players emerging in this area but it's always relied on the smaller players so if you know the rest of the world and use market and government are interested to create these Supply chains you know there needs to be more investment in this area to to the right companies um to ensure that there's adequate Supply as we sort of reach these targets that everyone talks about in 2030 so when you talk about Investments when governments are you know providing supports what sort of investment are is


is that more incentives that you're looking for like I guess you know looking at it from your perspective from from the perspective of the Explorer Of The Binding sector you know what what type of Investments um should the government be doing more out well look um mean you can access debt facilities through the governments I mean you can do that in Australia I think you can also do it in nor Canada um in the US it's possible but but a lot of these are always link the investment through government and also


from um export Credit Agencies is linked to that sourcing of critical materials into that jurisdiction um so there is facilities available to do that I think the area that you'll find that was more interest for explorers is direct RIS matal about investment is probably direct Equity investment whether it's in the project level or in the company level um to help support the development and I think there's not enough of that going on realistically speaking do you foresee a future where critical Metal Supply are


not dominated by China as you mentioned earlier even China is you know venturing out of its own country to look for sources uh like do you see that and how do how do you see us getting there well look I mean there is I think if you look at all the supply chains for Rare Earth and there more magnet value chain is what what interests everyone in the market because it's the magnet rarest and the most portion going forward um they have also the highest value so Japan has always got very strong rare the chain um and they prob been


very successful Downstream and developing um a magnet value chain so they're ping magnets from Japan whereas the rest of the magnets are mostly produced in China um there is some development outside in the US a little bit in Europe probably needs to be a lot more and it could be supported by the government um or incentivized by the government um p is probably a classic example where they um had that magnet value chain and also further Downstream applications so compete successfully against other Western countries and even


China then may also have some Supply that comes from outside of China from Malaysia so there is things developing um slowly on in terms of Diversified Supply there's lots of other small activities that are going on PL like Estonia we're seeing activity in the US so look at you know considering that you know so haven't been involved in this industry for about 10 years in the last three to five years there's been that a much bigger push towards building up those Supply chains um today and the


governments of the different jurisdictions need to do a lot more on to help we been along and F so to meet that that energy transition um because you know strategically everywhere particularly which is usually more important for the transition Transportation energy sector and and defense rely on sort of heavy rants uh could you talk about sort of the progress of your projects there um you know maybe some uh you talk describe the jurisdiction as well like what are your experiences in sort of operating in


that part of the world dy6 medals you know we've got um allowing sort of based projects we've got two two prospects um that we're working on so it's it's a new company we've just listed in June I raise $7 million um so valow itself is is a reasonable jurisdiction it's a stable mining jurisdiction um you know and as I mentioned previously you know it is hosting some rare deposits and goers that are in development um the significant potential for critical mineral development in in the region and


the malan government is quite supportive of and identified mining as a growth sector um ml is sort of is abundant in minerals and is attracted significant mining investment so for um dy6 medals we've got two two sort of rare earth niobium prospects that we're working on um and another all Southern Mala more recently some the flagship rare earthian project is called ringa so it's enriched in heavy rare RS to sprays in turban while the the license or tenament covers around 43 square kilometers um and so in late late August


we completed a maiden drilling program um or about four just over 4 and a half th000 M of um 30 12 RC holes and eight Diamond drill holes so we've had two announcements in the last sort of two to three weeks we received the s for 22 of the RC holes um looks very encouraging we're seeing some of this widespread um AR mineralization and with abundant portion of heavy rare Earths so the samples also rning sort of good OBM numbers and the drilling program once we receive all the remaining essays which will probably


happen over the next quarter um sort of rapidly Advanced our geological knowledge of the machinga resource um so with the diamond drilling that we've done we we also will use that for mology work and start to look at some Metallurgy work going forward so the first phase I call it phase one um exploration program and mainger and mainger sort of split up into like a main Zone that's what we've started off it's Southern and Northern Zone we are doing a bit more sampling or Rock ship


sampling around to prepare for for a second phase um but the team's demobilized at the moment um has moved to our other project called self Midway which is further south um so we're this month we're planning to do a detailed geophysical and geochemical sampling program at that project um that'll happen over just next six weeks and that'll Aid Us in defining targets for the drilling campaign um to be commenced in the in the quarter coming up um towards the end of the year why is now the right time for investors


to be looking at dy6 medals looks at dy6 medals it's it's it's obviously early early stage um has a lot of potential in the sense that we haven't done that much drilling small m in a lot of other companies that are around in the rare earth business tunnel so upwards of 20 50,000 meters of drilling um there hasn't been enough focused on heavy rare Earths um by explorers mostly it's been around light rare um and there is a number of very good Advanced projects in the ready to


probably be once funded could Supply YP down for the next sort of f 5 to 10 years um but when it comes to heavy Rare Earth that there is not enough good quality rare projects so I think the timing looks excellent to look look look in looking closer into um dy6 and invest um and follow us very closely as we Jo mooved from on this exploration stage into murgy and into a study program so look you know one thing probably worth mentioning is that because there's an appetite obviously for for China to import rare


he wants doesn't want to rely on its own resource it wants to look at Ting there is a lot of interest from Chinese groups for projects outside of um China it's not necessarily just malaran projects but um certainly there is a lot of interest for projects like do6 to supply not just into China and a possible Source you know and and funding but also if you can have the right um development stages on countries such as Japan and Europe will also be interested there very interesting prospects for your projects and your


company thanks again for sharing your insights today Lloyd thank you Marilyn and thanks everyone for watching join us again next time for another engaging conversation on CEO insights if you like this video make sure you sub subscribe to our Channel and turn on notifications so you don't miss future updates and interviews see you next [Music] time