China’s pollution problems are well documented, and the government has started to show a desire to act on them. The Chinese control 97 percent of the rare earth supply, which is needed for numerous sustainable energy technologies. China could be in the driver’s seat of a new green economy selling not only rare earths, but finished sustainable energy technology.
As China severely reduces export quotas, the rest of the world is waking up to the reality of finding new sources for rare earth elements. This is a breakdown of some of the rare earth projects being developed outside of China.
Prices may be on the move for rare earth elements as China restricts export quotas by 72 percent. Controlling 95 percent of the world market, the drastic reduction to exports will choke the supply of the materials for world consumption. Also, the Chinese are considering making a transparent, negotiation based pricing system.
The ‘RESTART’ Act proposed in the US congress is aiming to reduce America’s dependence on China for the supply of rare earth elements vital for US weapons and defense industries as well as electronics and green technology companies. The bill seeks to assist mining and processing operations, as well as create a strategic stockpile of various rare earth elements.
At the halfway point, 2010 has not been kind to junior rare earth companies, many of which have watched their stock prices fall. But, with China restricting exports interest in developing new resources is growing.
It is important to note the distinction between rare earth elements and similar terms used in the resource sector. Two classifications that are often confused with rare earth elements are Rare Earth and Rare Metals.
Friday, The House of Representatives approved the National Defense Authorization Act, which outlines the US Department of Defense’s (DoD) budget and expenditures. Included in the Act was an amendment to formulate a plan to establish a domestic source of rare earth element neodymium.
Quantum Rare Earth Developments Corp. showed it’s serious about developing a rare earth property when it acquired 100 percent of Elk Creek Resources Corp. last week.
China’s rare earth monopoly remains a concern in the US Congress as the Government Accountability Office tables a report outlining the industry; Cache Exploration Inc acquires more property at its Welsford location in New Brunswick; and, Japan is going underwater to search for minerals in its coastal zones.
The drilling results Spectrum Mining Corporation released in October 2009 from their Wicheeda rare earth property north of Prince George, British Columbia, have triggered a flourish of activity in the region with other companies trying to cash in on Spectrum’s find. Several companies have bought-up claims neighboring Spectrum’s property while others are setting up shop around northern BC.
Monday, July 26, 2010