Rare Earth News
Mining limits in China drive rare earth investors away
Tight limits on domestic mining have caused Chinese private investors, who are being attracted to rare earth elements (REEs) by recent price soars, to search for opportunities outside the country, China Daily reports.
Two large companies have stated they plan to take their business overseas, with one company planning to invest $30 million in a mining project in South Africa.
"As far as I know, many private investors have shifted their focus to overseas projects," one Mongolian executive, who wished to remain anonymous, told the news source.
Because local governments own most of the mining rights in China, the country is trying to consolidate the fragmented industry, reducing private investors' access and causing their stakes in mining companies to be swept up by the state.
Investors have also begun to explore rare earth mining projects in Canada, as major deposits of REEs have been discovered at sites near Prince George, British Columbia and Montviel, Quebec.
REEs are extremely useful, and can be found in the production of many new technologies, which often leads to increased investing in rare earth metals. Neodymium, for example, is used in the development of wind energy conversion, and recently hit its highest-ever recorded price of $280,000 per ton, according to Recharge News.