China’s Ministry of Commerce and General Administration of Customs has announced export control measures on certain items related to seven types of rare earths. Included in the list is a little-known rare earth element called gadolinium, which is used in magnetic resonance imaging (MRI).
While gadolinium rarely, if ever, makes headlines, the silvery-white, malleable and ductile rare earth metal could see a spike in demand in Australia with the federal government announcing in its 2024-25 Budget in March it is removing final barriers to access MRI services.
The government is committing an investment of $162.6 million to implement three reforms to Medicare funded diagnostic imaging services, which could lead to more MRI equipment being needed as medical practices ramp up MRI services.
Rapid technological advances have resulted in the rare earths growing in importance in many domestic, medical, industrial and strategic applications because of their unique catalytic, metallurgical, nuclear, electrical, magnetic and luminescent properties.
Examples of their innumerable applications include their use in magnets and super magnets, motors, metal alloys, electronic and computing equipment, batteries, catalytic converters, medical imaging, phosphors, lasers, and special glass, among others.
The Ministry of Commerce in Beijing says its latest measures, which counter a barrage of tariffs from the US, aim to better safeguard national security and China’s interests and fulfill non-proliferation and other international obligations.
China’s response to the 34% tariffs imposed by President Donald Trump on imports from China has been imposing a 34% tariff on imports of all US products beginning 10 April.
With the Commerce Ministry now imposing more export controls on rare earths, Western nations will need to expedite exploration and increase mine development of rare earths in order to reduce China’s dominance in the sector.
That’s because China produces about 90% of the world’s rare earths – a group of 15 elements of the lanthanide series. Metals in the lanthanide series are lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb) and lutetium (Lu).
Additionally, yttrium (Y) and scandium (Sc) are often grouped with the lanthanides and referred to as rare earth elements. Geoscience Australia assesses the lanthanides and yttrium together and has produced a separate review of scandium.
Gadolinium: Scanning the sector
According to Inside Radiology, gadolinium contrast media (sometimes called a MRI contrast media, agents or ‘dyes’) are chemical substances used in MRI scans. When injected into the body, gadolinium contrast medium enhances and improves the quality of the MRI images (or pictures).
This allows the radiologist to more accurately report on how one’s body is working and whether there is any disease or abnormality present.
Gadolinium contrast medium is used in about 33% of MRI scans to improve the clarity of the images or pictures of a body’s internal structures. Gadolinium contrast media consist of complex molecules, arrangements of atoms held together by chemical bonds. The chemical bonds are made between a gadolinium ion and a carrier molecule (a chelating agent). A chelating agent prevents the toxicity of gadolinium while maintaining its contrast properties.
Considering the Australia Government is removing final barriers to access MRI services, gadolinium could soon be in headlines more often. From 1 July 2025, any practice location that holds a current licence will receive a ‘practice-based’ licence that provides full Medicare eligibility to all MRI equipment located at the practice. Sites without an existing MRI licence will need to wait until the next phase.
From 1 July 2027, all comprehensive diagnostic imaging practices will have their ineligible MRI machines upgraded to access all Medicare funded MRI services, at which point all MRI licensing requirements will cease.
From 14 July 2024 until 1 July 2025, all non-essential permanent and temporary transfers of existing Medicare-eligible MRI machines will generally not be considered, unless warranted by exceptional circumstances.
Amid this backdrop, more rare earth mines and production facilities will need to be built in Australia to combat China’s dominance.
The nation’s first rare earth refinery (Lynas’ (ASX:LYC) Kalgoorlie refinery) recently started operations, with Eneabba expected to reach production in the next few years. Exports of raw and refined rare earth elements could reach between $1.3 and $3.7 billion in 2029-30.
Emerging critical minerals facilities will create economic opportunities, including new graphite production which is expected to reach $576 million in value by 2029-30.
The value of production in Australia’s rare earths pipeline is estimated to be $1.9 billion by 2029-30 – in addition to $1.3 billion in exports from operating and committed rare earth facilities. Roughly 60% of the value of these exports are expected to come from refined rare earth products.
Write to Adam Orlando at Mining.com.au
Images: Jones Radiology & Lynas
