Alkane said Siemens would explore options to buy rare earths related to the production of neodymium permanent magnets either directly from Alkane, its subsidiary Australian Zirconia or other distribution channels.

Minerals such as praseodymium, neodymium, dysprosium, europium, terbium, lutetium, gadolinium and the rare metals niobium, zirconium and hafnium in oxide, alloy or finished product form would also be targeted, Alkane said.

If this went ahead, Alkane would consider procuring management systems, process automation solutions, power solutions, mechanical plant and services and product lifecycle management from Siemens Solution Areas, it said.

Noting the MoU was non-binding and non-exclusive for a period of three years, Alkane said the agreement was not the limit to co-operations between the two companies.

The $A1 billion DZP is now fully permitted, with final land acquisitions covering the permit area completed during the 2015-16 financial year.

In its annual report released earlier this month, Alkane said demonstration pilot plant trials were planned for the September quarter, adding that the project was ready for detailed design and construction to commence, contingent on financing.

Securing committed long term offtake agreements that would underpin financial modelling for the project was the next step in its financing program, Alkane added.

Shares in Alkane were up 14% or A8c to 65c in early trade, capitalising the company at $309.5 million.