Rare earth elements are used in a wide array of weapons systems used by the US military, however, there is currently no domestic production of the metals. This is catching the eye of congress as the US military and national defense is at the whims of Chinese trade policy.
The financing deal between Japanese trading house Sojitz Corporation, and rare earth mining company Lynas Corp of Australia recently won the approval of the country’s Foreign Investment Review Board. The deal worth $325 million will help develop the Lynas’ Mt. Weld deposit.
China has released the total mining output quota for 2011. The country has increased the level of the total by a modest 5 per cent over 2010. Along with the announcement officials stated that new permits for prospecting and mining will not be granted until June, 2012, which further exacerbates supply issues going forward.
Rare earth prices have jumped again, up nine fold from a year ago. The news of the increase in price also come at the same time that a new tax is levied on heavy and light rare earths differently, setting the stage for a potential change to export policy.
As the natural and now nuclear disaster unfolds in Japan, the number one importer of Chinese rare earth, rare earth stocks have been taking a hit. However, as an impending nuclear meltdown may increase the willingness of governments to jettison nuclear projects and move toward alternative energy, this may be a time to get into rare earth as they are essential for renewable energy, wind turbines and hybrid/electric vehicles.
The production of rare earth oxides creates radioactive waste in the form of thorium. This material is considered a liability in the processing of rare earths. However, science is quickly developing ways to use the material as nuclear fuel, either in next generation nuclear facilities, or as a substitute to uranium. There are many benefits to switching to thorium as the main fuel for nuclear power.
New details about the ‘drastic’ changes to Chinese rare earth policy have been released. Dealing with increased environmental protections, the end effect may be the consolidation of rare earth producers in China. Also, South Korea intends to build strategic stockpiles of rare earths, as well as increasing the countries investments in rare earth mines around the world.
Valencia Ventures Inc. (CVE:VVI) decides to terminate the agreements to acquire OntarioCo's interests in the Diana Project and the Carb Lake, Schryburt Lake and Lawashi River Properties.
Nikkei reports that on Thursday, a team of researchers, primarily from Toda Kogyo Corp. (TYO:4100) and Tohoku University, succeeded in making a magnetic material without rare-earth metals.
Great Western Minerals Group Ltd. (CVE:GWG) reports that the company has completed the purchase of 92.6% of the shares of Rare Earth Extraction Co. Limited.
Monday, April 18, 2011