TORONTO (miningweekly.com) – Avalon Rare Metals, a junior firm based in Toronto, has appointed SNC-Lavalin Group for a scoping study for the construction of a rare-earth separation plant in North America.

The study, which should be completed by September 30, will include capital and operating cost estimates, and will identify specific criteria for site selection.

Avalon's flagship project is the Nechalacho  are-earth deposit, near Thor Lake, in Canada's Northwest Territories.

The company completed a prefeasibility study for the project in June.

"Our prospective customers have indicated that they want Avalon to supply separated rare earth oxides, including the heavy rare earths, from a location outside China," said sales and marketing vice-president Pierre Neatby.

"The company recognized that need some time ago but now, supported by the results of a positive prefeasibility dtudy, we are in a position to more seriously consider the possibility of establishing a North American heavy rare earth separation facility,” he said.

According to Avalon, there is currently no active separation facility in operation outside of China capable of producing all the heavy rare earths as separated oxides.

Rare earth elements are used in the production of many clean technology products such as hybrid and electric vehicles, wind turbines, and energy-efficient lighting and are also used extensively in the electronics industry.

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