In this work, the use of a natural yttrium oxide and rare earth oxide solid solution (CRE2O3) as stabilizers of the α-Si3N4 phase to form α-SiAlON has been investigated. This oxide mix is produced at FAENQUIL-DEMAR, at a cost of only 20% of pure commercial Y2O3. Two α-SiAlONs using pure Y2O3 or CRE2O3 have been prepared, using mixes of 20% by volume of a molar fraction of 9:1 of AlN to Y2O3 or AlN to CRE2O3, respectively, with 80% α-Si3N4. Samples were gas pressure-sintered at 1900 °C, under 1.5 MPa of N2 for 60 min. Both compositions yielded α-SiAlON ceramics with high relative densities (98% t.d.), hardness of 18 GPa and fracture toughness of 5 MPa m1/2, with homogeneous microstructures composed of elongated α-SiAlON grains with aspect ratios of 5. It is concluded that the mixed rare earth concentrate (CRE2O3) can be used to produce α-SiAlON ceramics with similar microstructures and mechanical properties of α-SiAlON ceramics fabricated using pure Y2O3, but with the advantage of its lower production cost.