12:39PM, May 14, 2026
Special Report: A domestic “mine-to-magnet” rare earth supply chain capability is a step closer for the United States and Bayan Mining and Minerals with an MoU signed with US Critical Materials Corp.
- MoU signed with US Critical Materials Corp to advance rare earth processing tech
- USCM to evaluate a potential strategic investment into Bayan Mining and Minerals
- Deal positions BMM as both an explorer and a participant in the rare earth value chain
Bayan Mining and Minerals (ASX:BMM) has signed a non-binding memorandum of understanding with US Critical Materials Corp to advance rare earth processing technologies that could be vital for the future of US advanced manufacturing and national and economic security.
Bayan and rare earths leader USCM will collaborate to advance beneficiation technologies to unlock high-grade bastnaesite and ancylite-hosted rare earth mineralisation from the Sheep Creek Project in Montana.
USCM’s Sheep Creek Project in Ravalli County, Montana, is one of the highest-grade rare earth deposits in the United States, containing light and heavy rare earth elements, as well as gallium and niobium.
“This collaboration represents a major milestone in advancing Bayan’s rare earth processing technologies within the United States,” Bayan chief executive Nathan Kong said.
“By combining our licensed technology platform developed by the Colorado School of Mines with the high-grade mineralisation from Sheep Creek, we believe Bayan is well positioned to participate in the development of a domestic US rare earth processing pathway.”
Importantly, USCM intends to evaluate a potential strategic investment into Bayan and future strategic relationships subject to technical outcomes, due diligence, regulatory approvals and definitive agreements.
“The collaboration establishes a framework for technical advancement, commercialisation assessment and potential strategic investment opportunities that may support the broader development of Bayan’s technology portfolio,” Kong said.
The Partners
The tie-up combines Bayan’s exclusive licensed rare earth processing technologies, developed by the Colorado School of Mines, with high-grade bastnaesite and ancylite-hosted mineralisation from USCM’s Sheep Creek project.
USCM is uniquely positioned for domestic supply chain development in the shortest possible time, given its high-grade mineral assets and existing projects with Idaho National Labs on strategic metals and minerals.
Bayan, in turn, holds an exclusive licence to four rare earth processing technologies invented by the Colorado School of Mines and is advancing exploration at its Desert Star rare earth project in San Bernardino County, California.
The Colorado School of Mines research has been supported for decades by the US Department of Energy, Department of Defence, and US Geological Survey, and has shaped many of the modern flotation, reagent, and separation methods used across the rare earth sector.
“This collaboration provides USCM with the opportunity to evaluate innovative processing technologies on some of the highest-grade rare earth systems at the Sheep Creek project in the United States,” USCM executive chair Harvey Kaye said.
“Our objective is to support the advancement of a US-based processing pathway that aligns with national security and domestic supply chain priorities.”
In April 2026, USCM signed an MoU with REalloys, which aims for a long-term offtake agreement and potential equity investment.
The latest MoU with BMM establishes a framework for technical collaboration, metallurgical evaluation, commercialisation assessment and potential strategic investment discussions.
Bayan holds an exclusive global licence to a suite of four rare earth processing technology patents, which the company says secures its position as a differentiated participant in rare earth processing innovation within the United States.
The patented technologies include:
- Advanced systems and methods for leaching rare earths from ore (single-stage HCl leach for bastnaesite)
- Compounds, methods, and systems for beneficiation of rare earth elements by flotation and gravity concentration
- Upgrade of yttrium in a mixed rare earth stream using iminodiacetic acid functionalized resin
- Beneficiation of rare earth elements bearing ancylite.
Three of the patented technologies were developed using ore and process streams from the Mountain Pass district in California, home to the only active REE mine and processing facility in the United States and operated by US-backed MP Materials as a vital US strategic hub.
The technologies provide a strong metallurgical analogue for deployment across similar rare earth mineral systems such as Sheep Creek, Bayan explained.
In particular, the single-stage HCl leach is designed to improve recovery while reducing flowsheet complexity relative to conventional leach routes, while the flotation and gravity beneficiation technology is intended to improve recoveries from ultra-fine and calcite-bearing bastnaesite material.
The collaboration will focus specifically on the beneficiation technologies applicable to bastnaesite-hosted and ancylite-hosted REE mineralisation.
What’s Next
The MoU establishes a framework to assess pilot-scale and demonstration-scale processing opportunities in the US, downstream rare earth processing opportunities, commercialisation pathways and broader strategic partnership opportunities.
In the coming months, the partners intend to establish a joint technical committee and finalise the initial work program, including sample selection and definition of priority metallurgical test work on Sheep Creek mineralisation.
They will commence a laboratory-scale metallurgical test work program using Bayan’s licensed beneficiation technologies on Sheep Creek material and evaluate beneficiation performance and flowsheet optimisation.
Further, the partners will explore commercialisation opportunities for the “collaboration patents” including royalties, licence arrangements, fee and revenue-sharing structures, joint ventures, spin-outs and other commercial arrangements.
The yttrium upgrade technologies will remain outside the immediate scope, leaving them available to be commercialised by Bayan.
This gives Bayan a multi-path processing platform capable of addressing differing mineralogical settings, concentrate streams and downstream product opportunities.
Bayan said the arrangement strengthens the company’s position not only as an explorer, but as a participant in building practical processing optionality across the rare earth value chain.
This article was developed in collaboration with Bayan Mining and Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.