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Not really a bug since you can recycle higher quality Holmium into nothing; but essentially you can't do anything with it except recycle it again.

Unless I missed something....

I would recommend:

• Not being able to produce quality Holmium ore or
• Make it processable as normal Holmium ore

You might ask

Uhm... Why did you make quality Holmium ore?

To which I have no good answer other than it was a mistake

You can turn every quality of ore into holmium solution, just select the correct quality level for the recipe. To dissolve uncommon holmium ore, for example, you will need to select the uncommon recipe.

Thanks for the info, this was not obvious - until I understood quality management, it's still a bit weird since there's really nothing else you can do with it, much like smelting...

With the Nauvis resources (Iron/Copper/Stone/Uranium) you can use Quality modules at each step of the process - Mining, Smelting, Intermediate, and Assembly into a final product. If you get lucky this can produce Legendary items without further Recycling.

Using a Fluid step in Production Chains makes it harder to produce unlimited quantities of Quality items: you can only produce “Normal” quality Holmium plates from Solution. This does make Quality Ore feel a bit useless - but it is all Scrap Byproducts anyway, so what’s the harm in melting it all together?