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.
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.
Over the past two weeks, lawmakers in Washington have debated resurrecting a domestic supply-chain for rare earths and creating a national stockpile for the family of elements in response to China’s monopoly over the minerals.
The setting up of Exchange Traded Funds (ETFs) in the rare earths metals sector will ensure transparency and will go a long way in bringing in more investors, including institutional buyers.
Rare Earth is likely to spark off a new global policy issue, especially those from China. But Canadian miners such as Great Western Minerals and Avalon Rare Metals, with high concentrations of the heavy rare earth, stand to benefit in the geo-political tangle.
Wednesday, June 16, 2010