Heavy rare earth elements (Gd to Lu) (HREE) [1], in which often Y is included, are used to produce permanent magnet, phosphor, condenser, zirconia stabilizer, etc. Among them, dysprosium (Dy) is indispensable to improve heat resistance of the NdFeB magnets, which are applied in modern high-tech materials such as the driving motors of hybrid vehicles, factory automation machinery, home electronics and wind turbines [2]. HREE have been mostly produced from ion-adsorption type deposits in southern China, except for a very limited amount of production from xenotime in placer deposits [3]. Although China has been the main producer of REE in the world, due to the restriction of the ore production and export of HREE by the Chinese government, many countries have had difficulty in the supply of HREE.