One Australian mining company is looking beyond the standard materials for its next big project.

Alkane Resources is in talks with major aerospace firms about a rare earth element used in jet engine manufacture.

The Australian miner obtained a lease to mine zirconium, niobium, tantalum, yttrium and other rare earth elements at its Dubbo Zirconia Project in December last year.

For the aerospace field, the rare earth hafnium is in great demand.

Alkane Resources managing director Ian Chalmers says the company has discussed supplying hafnium in meetings with Boeing, Airbus and Rolls Royce.

Mr Chalmers said it is a “very strategic metal” as it can significantly increase the heat resistance of a metal alloy.

“For instance, adding 1 to 2 per cent of it to an alloy can raise the operating temperature from 1400 to 2000 degrees Celsius,” he said.

“So for the same amount of the fuel they can get more energy and speed and burn that fuel more efficiently.

“It helps minimise emissions, and that in itself is a real driver for hafnium.

“Our metals are essential for modern air travel, in defence and passenger applications.

“Hafnium in particular is in very limited supply around the world but there are many applications for it.

“What we would supply is a very small but very important part of [the aerospace industry’s] business.

“The other really interesting application for it is in industrial gas turbines that generate electricity.”

In fact, Mr Chalmers said there were even more uses for the material that are so secret, the companies would only hint at them.

The company is reportedly lining up agreements as backing for its planned $1 billion processing facility at Toongi in NSW.

It says that if funding is secured, Alkane Resources could end up supplying half of the world's hafnium.

“Hafnium's always been there as a by-product of zirconium production and for some time we couldn't see a big enough market for it,” Mr Chalmers said.

“But then we were approached by an interested aerospace company so we thought, why not have a look at getting it out?

“It won't happen overnight, it takes a long time to put these deals together.

“It's very early days and the numbers are a bit vague but we certainly believe we can sell all of our output into what's a developing demand.”