In Australia, current production of rare earth element (REE) minerals, monazite and xenotime, occurs as by-product from titanium-enriched placers and beach sands. Undeveloped REE resources are associated with carbonatites, alkaline igneous rocks, pegmatites, phosphorites, cemented fluvial sandstones, and uranium mineralisations. The REE are held within a range of minerals including silicates, phosphates, a1uminophosphates, carbonates, and oxides. The development of these REE resources may require new processing and extraction methods. The distribution of REE in the currently mined ore minerals, monazite and bastnaesite, does not match that requested by the market. Exploration for new REE resources should be focused on ores with more marketable REE distributions, particularly with heavy REE, neodymium, samarium, europium and yttrium enrichments. Such ores occur within alkaline igneous rocks, in laterites overlying carbonatites and alkaline igneous rocks, and in placers derived from low-grade regional and contact metamorphic sediments. Lateritic REE deposits may be easily and economically mined by shovel in open pits and are unlikely to require extensive crushing and milling. In addition, lateritic REE clay deposits may be processed by simple hydrometallurgicaltreatment mehtods.