Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia and Best AI Tech Stocks ETF - 26th Oct 21
Food Prices & Farm Inputs Getting Hard to Stomach - 26th Oct 21
Has Zillow’s Collapse Signaled A Warning For The Capital Markets? - 26th Oct 21
Dave Antrobus Welcomes Caribou to Award-Winning Group Inc & Co - 26th Oct 21
Stock Market New Intermediate uptrend - 26th Oct 21
Investing in Crypto Currencies With Both Eyes WIDE OPEN! - 25th Oct 21
Is Bitcoin a Better Inflation Hedge Than Gold? - 25th Oct 21
S&P 500 Stirs the Gold Pot - 25th Oct 21
Stock Market Against Bond Market Odds - 25th Oct 21
Inflation Consequences for the Stock Market, FED Balance Sheet - 24th Oct 21
To Be or Not to Be: How the Evergrande Crisis Can Affect Gold Price - 24th Oct 21
During a Market Mania, "no prudent professional is perceived to add value" - 24th Oct 21
Stock Market S&P500 Rallies Above $4400 – May Attempt To Advance To $4750~$4800 - 24th Oct 21
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

As Rare Earths Get Rarer…

Commodities / Metals & Mining Mar 02, 2011 - 07:20 AM GMT

By: Anthony_David

Commodities

China’s role in the global rare earth market needs little introduction. China’s restrictive trade policies have forced the rest of the world to rethink their own policies and explore rare earth resources in nations other than China. The governments of the US and certain European nations are trying to develop various strategies to secure their supply of rare earth metals.


Recycling and stockpiling are two options being considered as ways to hold rising prices and ease supply shortages. Urban mining is the new recycling buzzword. It involves the extraction of rare earths from e-waste. However, recycling is expensive and complex. Director General Ian Hetherington of the British Metals Recycling Association (BMRA) said, “The widespread use of these metals is a relatively recent phenomenon, and so there is not a significant amount recovered through (Waste Electrical and Electronic Equipment) recycling. Currently, recovering these materials can be costly and only produces very small quantities, making it uneconomical.” He did add that the situation could change over the next decade.

The European Commission (EC) is investing about $23 million on research to improve underground technologies and to find substitutes for rare earths. The EC hopes to improve recycling techniques and make it economically viable. Germany, Japan and the US are working on recycling technologies too. Large players such as Hitachi and Mitsubishi are working to make recycling a viable option.

China, on the other hand, plans to build a national stockpile of rare earths and that would naturally push prices upwards. China also intends to change its status from being a net exporter to a net importer of rare earth metals. Such a move is likely to further lower China’s export quota and squeeze the global supply even more.

Chen Zhanheng, director of the Chinese Society of Rare Earths said, “(There are) early signals that China is moving from sell-side to buy-side. China becomes a new market opportunity for producers outside China.”

James T. Areddy of The Wall Street Journal says, “The reports say storage facilities built in recent months in the Chinese province of Inner Mongolia can hold more than the 39,813 metric tons China exported last year… Chinese state media reports say stockpiles may eventually top 100,000 metric tons.”

The US reportedly has the world’s second largest rare earth deposits but extraction facilities are still under development. Emily Coppel, an American Security Project research assistant said, “The U.S. will need to develop new technologies and invest in mining operations to solve the long-term supply problem. In the short-term, stockpiling rare earths metals is one of the best ways to prepare for a future shortage until these new mines and technologies become available.”

Other organizations have however spoken against stockpiling and instead support research in recycling, solar power equipment, wind turbines and electric cars. Robert Jaffe, Professor at Massachusetts Institute of Technology, said, “We do not recommend economic stockpiling which we believe is a disincentive to innovation and has backfired in the past. After all, many of these elements are not even found in significant deposits in the United States so mining independence doesn’t even make sense.”

Other supply options being discussed are development of rare earth substitutes and international cooperation. Experts suggest that if nations join hands to develop new mines, they could reduce their dependence on China’s monopoly.

China’s unofficial ban on rare earth shipments to Japan last year forced the rest of the world to view China with considerable suspicion. Looking for alternate sources became a necessity. China’s neighbors Japan and South Korea have already begun stockpiling rare earth metals. In fact, South Korea plans to spend up to $15 million by 2016 to build a stockpile of about 1,200 tonnes.

In October last year, Japan’s Prime Minister Naoto Kan said, “Stockpiling is one option we need to consider. While Japan is trying to secure supplies from countries other than China, establishing those agreements may take some time.”

Efforts to undermine China’s dominance are underway in South Africa as well. Canada’s Great Western Minerals Group expects to produce about 2,700 tonnes per year of rare earth metals from its Steenkampskraal mine in South Africa. Chief executive Jim Engdahl said, “The big opportunity here that people haven’t recognized is that China will become a net importer by 2014/15. We believe South Africa will become one of the leaders in this industry outside of China.”

Japan has also expressed considerable interest in developing South Africa’s rare earth industry among other sectors.

By Anthony David

http://www.criticalstrategicmetals.com

The mission of the Critical Strategic Metals Web Site

is to serve as a monthly compass for those who take a fundamental view of investment regarding the Molybdenum, Manganese and Magnesium metals markets, are concerned with the emerging critical under-supply of these strategic metals to Western nations and wish to profitability chart their course. Each month we will research and provide, in as short and concise a manner as possible, the most applicable information available on resources that will have the biggest impact on our day to day lives. Click here to sign-up for our FREE monthly report

© 2011 Copyright  Anthony David- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in