Electric Metals Inc - Rare Earth News

China extends crackdown on rare earth exports, prices remain high

Wed, 26 Oct 2011 11:49:12 GMT

On Thursday, September 15, a senior industry officer told Reuters that it is "unrealistic" to expect rare earth prices to fall back to previous levels as China continues to limit its exports of rare earth elements REEs.

Li Zhong, the vice-general manager of Baotou Steel Rare Earth Hi-Tech Holding, told a conference in Beijing that China plans to gradually wind down its role as the global supplier of REEs, as the country has decided to focus more on its domestic market, the media outlet stated.

However, many analysts believe the reduction in exports was a move to attract foreign consumers of rare earth to China.

"There is roughly a 40 percent difference in the cost of rare earths if you're buying on an export basis, due to the cost of the quota and the export tax," Michael Silver, chief executive of American Elements, told Reuters. "A company that moves here gets an incredible benefit."

However, many other countries are picking up right where China left off. Large deposits of REEs have been found in the lower James Bay region of Quebec, where exploration efforts have begun to distinguish any REE, such as niobium and tantalum enriched lithologies.

Expert: Stockpiling not appropriate response to China export caps

Tue, 04 Oct 2011 17:03:43 GMT

As the European Union toys with the idea of stockpiling its rare earth element supply in response to the recent Chinese export restrictions, one French research group has raised concerns that stockpiling may not be the way to go, Reuters reports.

According to the news source, French chemicals group Rhodia says finding diverse supplies of the mineral through new rare earth mining projects is a much more pertinent response to the export caps.

"Creating strategic stocks of rare earths seems a little strange to me," said Jean-Pierre Clamadieu, former chief executive of Rhodia and current deputy CEO of Solvay, the product of the Belgian group's takeover of its French counterpart. " My belief is that in five or 10 years’ time we will have diversified again our resources."

Rhodia, a leading processor of rare earths, plans to find non-Chinese rare earth element sources by the end of 2011, the media outlet stated.

As processors around the world search for alternative rare earth sources, North America, and especially the Quebec and British Columbia provinces of Canada, are considered to have some of the world's leading mining operations, in terms of quality, outside of China.

Rare earth elements essential for sustainability initiatives

Tue, 04 Oct 2011 17:02:47 GMT

If the technology-driven countries of the world expect to continue growing in a sustainable way, it is crucial that innovative and efficient means of obtaining rare earth elements be developed, as these precious minerals will likely be the backbone of sustainability initiatives, according to The Guardian.

Rare earths have become so important because they are essential for promoting a low-carbon future, most notably in the transportation and renewable energy sectors and for their impact on climate change research.

A recent RCIS publication makes the argument that as global demand for rare earths increases, property development will in turn become increasingly significant in an effort to use the minerals in the most sustainable way possible.

Currently, cities occupy 2 percent of earth's surface but consume 75 percent of its natural resources - a clear indication that urbanization is an unsustainable prospect. If the world is to keep up with urbanization, it will need to use rare earths to construct buildings resilient to climate change and as resource-efficient as possible, according to the news provider.

Canada is doing its part to contribute to a low-carbon future, as Quebec officials recently opened previously untapped lands rich in rare earth element deposits, making them highly accessible for rare earth mining operations.

The race is on for rare earth elements

Mon, 03 Oct 2011 16:05:38 GMT

All over the world, countries are beginning to explore their lands for potential rare earth deposits, as the precious elements are necessary for a wide range of commonly used products.
In the Philippines, the head of the Mines and Geosciences Bureau (MGB) rececently stated that the government has begun an exploration campaign to find deposits that may exist in the country, Business World reports.

"[Environment] Secretary Ramon Jesus P. Paje has given an instruction to me for MGB to launch an exploration for rare earth elements because it is the future," MGB Director Leo L. Jasareno said on Thursday. "No cars or computers can work without [them]."

The government has provided more than $455,000 for exploration projects to begin in early 2012.

However, some mining executives have warned investors that there are very few deposits available for rare earth mining outside of China. But many mines in Canada, namely in Quebec and British Columbia, have been recognized as having positive feasibility studies, giving them "advanced" ratings.

The demand forecast for rare earths in 2015 is 170,000 metric tons of rare earth oxide per annum.

Oil and gas take a backseat to rare earth elements in North America

Fri, 30 Sep 2011 18:21:13 GMT

Alaska, an area long known for its oil and gas reserves, may see increased activity in the mining of rare earth elements (REEs), as these hard-to-extract metals have inimitable properties that make them essential for the production of many everyday products, The Associated Press reports.

According to the news source, Alaska is touting its lands as excellent places to explore for the critical minerals, as it has 70 known sites of rare earth deposits.

In a paper released by the Alaska Department of Natural Resources, a surge in exploration activity began last year, when China, which supplies the world with roughly 95 percent of all REEs, lowered its exports. In the paper, economic assessments took place all over the region, including Canada.

In nearby British Columbia, the provincial Ministry of Energy, Mines and Petroleum Resources recently gave out a number of permits to conduct exploration programs for REEs in an area north of Prince George.

According to the U.S. Geological Survey, Canada is among the few countries that have increased rare earth mining in the wake of Chinese export grips.

Rare earth elements may help bring peace to Afghanistan

Fri, 30 Sep 2011 17:43:32 GMT

Rare earth elements, which are widely used in high-tech products such as smart phones, hybrid vehicles batteries and computers, may be taking on even more importance after a large discovery was made in the war-torn nation of Afghanistan, Bloomberg reports.

According to the the U.S Geological Survey, the recent discovery of up to 1 million metric tons of rare earth element resources in the Khanneshin carbonatite comes after extensive searches performed in the area.

For a country that has seen constant bloodshed for decades, the find comes as a welcome surprise.

"The key to peace in Afghanistan lies in our mineral resources because lasting security and stability is dependent on the amount of economic opportunity available to Afghans," said Afghan embassy spokesman Abduljalil Ghafoory.

The nation is celebrating the find because of the importance and ubiquity of rare earths, which provide unique properties to many manufactured goods, Bloomberg stated.

Other areas of the world are also looking to cash in on the demand for rare earths. Some geologists say 56 percent of potential rare earth deposits outside China are found in Canada, while 41 rare earth mining projects are currently under way in Quebec.

Japan looks outside China for rare earth elements

Wed, 28 Sep 2011 18:19:43 GMT

Japan has begun talks with Myanmar as the country hopes to diversify its source of rare earth elements (REEs), which the company uses in a vast amount of high-tech goods and has traditionally received from China, according to The Japan Times.

China reportedly stopped shipments of REEs to Japan in 2010 over rising diplomatic arguments, which prompted the country to invite Myanmar Foreign Minister Wunna Maung Lwin to Japan to advance plans for alternative REE sources, the news source stated.

As a major producer of high-tech goods, such as smart phones and hybrid vehicles, Japan is eager to develop trade with countries other than China. Recently, many Southeast Asian countries, such as Vietnam and Laos, have announced interest in exploring rare earth deposits.

Canada has also been noted as a possible choice as Japan's rare earth supplier. According to AZO Mining, drilling operations are currently underway in several parts of Quebec, with many CEOs excited about the high levels of large carbonatite bodies found in the ground that could compare with any discovered around the world.

China's rare earth monopoly could affect global economy

Wed, 28 Sep 2011 18:19:31 GMT

On September 21, a set of hearings took place among the U.S. House of Representatives Committee on Foreign Affairs Subcommittee on Asia and the Pacific, where a consensus was reached that China's monopoly could very well be a threat to the global economy, Oil Price reports.

The committee met in response to the effects of China's export ceiling, which in 2010 cut the country's mineral exports by 40 percent, causing prices to skyrocket in 2011 to levels of more than $100,000 per ton.

Now, Japan has announced that it plans on taking its rare earth mining operations to other countries, in addition to moving some operations to China, the media outlet stated.

According to the news source, sufficient rare earth deposits exist outside China, it is just a matter of companies developing those sites in an economic manner.

Recently, Quebec opened its entire northern region to mining and forestry, which has led to a boom in rare earth mining, according to The Associated Press. The provincial government plans to spend $80 billion to make the region, which has large rare earth deposits, more accessible to rare earth mining companies.

Tighter controls on rare earth elements to be seen in China

Wed, 28 Sep 2011 18:14:56 GMT

More controls have been imposed on rare earth metal mines in China by the country's Ministry of Land and Resources, limiting the export of the vital minerals that are used in many high-tech gadgets, according to The Associated Press. China says the exports are for the "sustainable and healthy development" of the country.

Vice minister Wang Min recently described rare earth elements as the "vitamins" of industry in the 21st century, and released a statement on the ministry's website that called for tighter controls over mining, processing and sales of the metals.

The crackdown is to focus on the Inner Mongolia, Shandong and Sichuan regions of the country, with officials from all three areas expected to comply with the new controls, according to the AP.

Although China produces more than 95 percent of the world's rare earths, it only contains about 30 percent of the total supply. Rare earth mining operations have sprung up around the world due to the country's new controls, which have sent prices soaring.

According to the SmallCap Network, Canada may be home to one of the largest undeveloped rare earth deposits in the world, with many mining operations underway from Quebec to British Columbia.

Cost for rare earths used in cleantech applications expected to rise

Wed, 28 Sep 2011 16:58:06 GMT

As China makes moves to further spread its control over the rare earth mining sector, mining CEOs are keeping a watchful eye on the country, as new research suggests the prices will continue to rise throughout the decade.

"China is clearly warning that they will consume more of their own rare earths and export less," Mark Smith, CEO of one rare earth mining company, said to Congress, adding that "they see tight supplies of rare earths as representing an 'irreversible' trend."

A recent report from Pike Research stated that the demand for rare earths, which are essential in the cleantech industry, will rise to 12,920 tons per year by 2017, compared 9,000 tons in 2011.

Uncertainty of supplies could raise the cost for rare earth metals used in cleantech applications to more than 1.2 billion by 2017.

According to New Electronics, rare earths are vital to lasers, optical fibers, capacitors, LCD displays and headphones, leading many companies to begin mining outside of China.

In Quebec, a number of rare earth mining operations are underway, as the province has opened previously unexplored areas to mining.

House Foreign Affairs Subcommittee discusses rare earth elements in Asia

Fri, 23 Sep 2011 18:07:10 GMT

Members of the House Foreign Affairs Subcommittee recently discussed the status of China's grip on rare earth elements and the issues surrounding them, including the undermined competitiveness seen in other areas of the world.

John Galyen, president of Danfoss, a global manufacturer of compressors and other related devices, gave a testimony in front of the committee, urging the members to confront China's monopoly on rare earth mining.

"Chinese control over the mining, processing and exporting of these materials has now driven up the cost of our bearings almost ten-fold," he stated. "We’ve experienced an 800 percent increase in the cost of magnets used in a bearings/shaft/motor kit this year, [threatening] the viability of the technology and profitability of our factory."

Galyen cited Canada as one country that is taking advantage of the high demand for rare earth elements, stating that it has begun to re-open old dysprosium and neodymium mines, and also develop new ones.

On Friday, September 23, neodymium sold for $140,896 per metric ton in the Hong Kong market, up from $133,0641.15 the week before, according to Reuters.

Many new rare earth mining operations are being developed in British Columbia and Quebec, as major mineral deposits have recently been discovered in those regions.

Rare earth metals expected to stay hot

Fri, 23 Sep 2011 14:56:55 GMT

While gold has seen major increases recently, rare earth elements have proven to be some of the hottest commodities in the last year. But the difference between gold and REEs is the role they play in our everyday lives, which is likely to keep prices and demand high, Wealth Daily reports.

The elements are used in a wide array of products, but have recently been noticed for their role in causing compact fluorescent light bulb prices to shoot up nearly 40 percent in 2011, with prices only expected to increase.

By nationalizing dozens of rare earths producers and imposing export caps and quotas, China, which is the world's leader in rare earth mining, has sent the cost of these necessary items - as well as many other green tech devices - soaring.

Wealth Daily suggests that while investing in individual light bulb companies may be profitable in the long term, investing in rare earth mining companies that are operating in North America and supply the raw material for the bulb makers would be a wiser choice.

Many are choosing to invest in mining operations taking place in Quebec, as geochemical anomalies in yttrium, lanthanum and samarium have recently been discovered.

China's rare earth cap sounds alarms for mining companies

Thu, 22 Sep 2011 17:23:53 GMT

In the past year, prices for rare earth elements have made significant jumps as China has continued to lower its cap on exports of the in-demand minerals. While some manufacturers are toying with substitutes, the reality is that rare earths will remain in high demand, Design News reports.

Rare earth metals such as neodymium and dysprosium are crucial for the development of products ranging from hybrid car motors to white LED lights. Magnets produced using neodymium have magnetic fields at least five times as large as those created by other ferric magnets, and when dysprosium is added, it prevents demagnetization from occurring at high temperatures.

Thus, when China tightened its grip on the world's supply of rare earths, many mining companies saw the opportunity to tap into rare earth mining.

Despite recent declines, Chinese mining officials expect the price of rare earth elements to remain high. Now, mining operations are responding to the rallying prices, with some of the leading mines, in terms of quality outside of China, appearing in Canada and other parts of North America.

Several mining operations have begun in Quebec and British Columbia, where vast deposits of rare earths have been discovered.

Rare earths drop in price

Wed, 21 Sep 2011 16:12:30 GMT

Rare earth element prices declined on Wednesday, September 21, as speculators began large selling sprees, Michael Gambardella, an analyst in New York with JP Morgan said in a recent report. The document downgraded one of the world's largest rare earth producers outside of China to "neutral" from "overweight," Reuters reports.

Cerium oxide fell 30 percent since its last peak in June, while lanthanum oxide and neodymium oxide prices fell also, according to the news source.

Reuters reports that the price of most other rare earth elements remained steady in China, which produces more than 95 percent of the world's rare earths.

Because of the widespread use of the elements, many mining operations have begun around the world to tap into the growing market.

According to Rare Metal, the British Columbia Ministry of Energy, Mines and Petroleum Resources has received requests from many companies for permits to access the region's vast supply of rare earths. Some of the most abundant rare earths found in the area include cerium and niobium, which studies have found to be as high as 631 and 337 parts per million, respectively.

China mine buys up rare earth to bring prices down

Tue, 20 Sep 2011 18:01:39 GMT

China has announced its Baotou Steel-Rare Earth group will buy praseodymium-neodymium oxide at $140,915 per metric ton, a price that is above current market levels, to help catalyze a decline in rare earth prices, Reuters reports.

Baotou, the country's top rare earth-producing mine, said that by purchasing the metals, it aims to preserve the resources and bring order to a market that has been impacted by speculative purchases and sales, according to the news provider.

When China announced it would begin tighter quotas on exports, prices soared, while hoarding and speculation only made matters worse.

But prices have fallen since July as speculators worked to unload their supplies before the government could conduct investigations, the media outlet stated.

Due to the high demand for rare earth elements, many new rare earth mining projects have been developed outside of China, which has traditionally supplied the world with roughly 95 percent of all rare earths.

Seeking Alpha has stated that investing in rare earth metals, especially those found in parts of Canada such as Quebec and British Columbia, could be a wise investment, as large deposits of the metals have recently been discovered across the country.

Large rare earth element deposit discovered in Kenya

Mon, 19 Sep 2011 17:32:36 GMT

Potential pockets of niobium and other high-demand rare earth elements (REEs) were recently discovered in Kenya, near the port city of Mombasa, the Nairobi Star reports.

According to the news source, significant mineralization sites were found that could potentially yield high amounts of the precious minerals.

Niobium is in increasingly high demand for its properties that, when mixed with steel, create a strong alloy metal that is often seen in water and sewage system pipes, as well as various automobile components. The element is also used in welding rods and other stainless steel products essential to home building, and is even used in the production of optical lenses, the media outlet stated.

Due to China's export restrictions on rare earths, several countries have begun new rare earth mining operations or found new sources from which to import REEs, according to a release from the International Center for Trade and Sustainable Development.

Economies from around the world are set to convene in Washington D.C. in early October, where the EU, U.S. and Japan will discuss increasing imports from Canada, which is also heavily involved in the rare earth market with newly discovered deposits in Quebec and British Columbia.

Indian government to step up domestic production of rare earth elements

Mon, 19 Sep 2011 17:31:41 GMT

In the wake of China's decrease in rare earth element exports, countries around the world have begun to explore new possibilities of exporting or mining the highly sought metals. In India, the government has announced plans to increase indigenous production of the elements by giving impetus to exploration and discovery, according to The Economic Times.

Government officials have formed a committee that will research the availability of various forms of rare earth and decide on a production strategy that will guarantee long-term raw material security.

The country plans to expand its rare earth mining operations for the first time since 2004, after demand for the minerals has soared due to their presence in gadgets ranging from superconductors to magnets, according to Ag Metal Miner.

China and India are currently the world's top-exporting countries, but new operations are beginning in several countries.

In Canada, regions of Quebec have shown promising geological studies, with high amounts of yttrium, lanthanum and samarium found beneath the ground. Quebec's Ministry of Natural Resources and Wildlife conducted a 13-year study ending in 2009 that found several more forms of rare earth elements as well.

Significant rare earth deposits discovered in Afghanistan

Fri, 16 Sep 2011 17:43:34 GMT

On September 14, the U.S. Geological Survey (USGS) announced that nearly 1 million metric tons of rare earth elements exist below ground in the Helmand Province of Afghanistan, a welcome find after China, the world's largest rare earth exporter, recently limited its international shipments of the precious elements.

According to Industry Week, the area has major potential for the excavation of several light rare earth metals, including lanthanum, cerium and neodymium. The USGS has compared the find to the world-class deposits recently discovered in North America and the known resources of China.

Acting director of the Department of Defense's Task Force for Business and Stability Operations Regina Rubey stated that the discovery could have a major impact on the war-torn nation.

"This is just one more piece of evidence that Afghanistan's mineral sector has a bright future," she said.

According to Bloomberg, the discovery further highlights China's decreasing monopoly on the rare earth market, as projects exploring the feasibility of economic production of other deposits are currently taking place in Canada as well.

Studies have shown Canada contains 56 percent of the world's rare earth minerals outside of China, with Quebec showing the most potential. Currently, more than 40 exploration projects are underway in the region.

Chinese grip on rare earths affects American light bulb prices

Fri, 16 Sep 2011 17:38:57 GMT

China's closing or nationalizing of several rare earth producers has sent the price of U.S. fluorescent light bulbs skyrocketing, leading many end users of the minerals to find different sources.

According to The New York Times, General Electric has faced complaints from U.S. users about its rising prices. In a recent statement released by GE, the company notes that if the rate of inflation in the last 12 months on europium oxide had been applied to a $2 cup of coffee, today the coffee would cost $24.55.

But the effects of China's ban are being felt in industries outside of light bulb making as well.

"The high cost of rare earths is having a significant chilling effect on wind turbine and electric motor production in spite of offsetting government subsidies for green tech products," Michael N. Silver, chairman and chief executive of American Elements, said at a recent conference.

However, a break from the high prices could be on the horizon as many deposits of rare earths are being discovered around the world. In British Columbia, several new projects are underway that could lead to many new rare earth mining operations.

New mining projects aim to ease rare earth concerns

Wed, 14 Sep 2011 18:04:57 GMT

As the demand for rare earth elements (REE) increases and China, the world's number one supplier of the raw materials, continues to cut its export numbers, deposits around the world are being tapped into in order to ease concerns of an international shortage, according to Reuters.

Francois Bersani, secretary general of the Strategic Metals Committee in France, said that many countries are looking to diversify the supply of metals, as many importers are becoming frustrated with China's monopoly on the precious elements, the media outlet reports.

New projects in Australia, Europe and Canada are appearing and could become the next great players in REE extraction.

Sub-sea explorations conducted by France and Japan have exposed many deposits of REE off the coasts of the countries that could also be tapped and exported.

According to the Winnipeg Free Press, Quebec is also vying for a place in the rare earth market, as province Premier Jean Charest has had several discussions with Japanese officials about potential projects in the area.

With demand expected to soar in the near future, Quebec is well-positioned to become a leader in the REE mining sector.

Rare earths hold place as kings of electronic industry

Wed, 14 Sep 2011 17:34:33 GMT

Some of the world's most vital electronics, including optical fibers, lasers and capacitors, are dependent on one or more of the rare earth elements, New Electronics reports.

In total, there are 17 rare earth elements, all of which are used in the electronics industry in some way. And despite their name, certain metals, such as cerium, are actually bountiful. The trick lies in commercially exploiting the precious minerals.

Only small amounts of rare earths are used in their respective products, but the fact that China has until recently claimed a monopoly on mining for rare earth has caused some alarm regarding where the minerals may come from if China discontinued its exports, the news provider stated.

If there were a shortage of neodymium, one of the most widely used elements, hybrid cars could not be built, while laptops would lose their main component for mass storage in a small space.

But new rare earth mining companies are cropping up in many countries. Canada, for example, has seen many new mining operations. One exploration in British Columbia has found major deposits of niobium, lanthanum, neodymium and titanium that are currently be excavated.

Rare earth metals ranked in new 'risk list'

Wed, 14 Sep 2011 17:31:31 GMT

The British Geological Survey has published a list of the relative risks to the supply of some rare earth elements, providing details on the so-called "technology metals," the BBC reports.

The metals listed, such as indium and niobium, are used in many modern digital devices and are essential for green technological improvements, making them a hot commodity for several global industries.

Highlighted in the list are 52 elements that are most at risk from "supply disruption," which includes geopolitics, resource nationalism, accidents and the relatively long period seen between a rare earth deposit discovery and extraction of the metals, according to the BBC.

China is responsible for extracting 50 percent of the elements listed in the chart, but many more locations around the world have the resource deposits, with efficient methods for extracting the metals being developed.

Recent explorations in Quebec have found large carbonatite intrusions at a rare earth sites that covers 2,600 hectares in the Abitibi region, according to a release.

The metals on the list have become so important to everyday life because of society's move toward a low-carbon economy, creating a soaring demand for the products which are used in appliances from hybrid cars to wind-generating turbines.

U.S., EU, Japan plan October rare earths meeting

Tue, 13 Sep 2011 18:00:42 GMT

United States officials will meet with representatives from the European Union and Japan in Washington in early October to discuss ways that the demand for raw materials can be cut, with Canada as a possible player in the talks, according to Reuters.

The three nations will team up to create ways to better use what minerals are available outside of China, which recently dropped its exports significantly.

"There is a growing market for these products and we need to be able to keep producing them," Jeff Skeer of the office of policy and international affairs at the U.S. Department of Energy told the media outlet. "We need to find out how can you use less and how can you get more."

Skeer said that talks are likely to also include officials from Canada, as the nation has several regions that are rich in rare earth deposits that are currently being explored.

Of Canada's new developments, some of the most promising are found in Quebec, where there are currently 41 exploration projects assessing excavation of the precious minerals, according to CBC News.

Rare earth element prices may continue to rise

Tue, 13 Sep 2011 18:00:21 GMT

As rare earth investors continue to watch the familiar story of high prices and tight supply outside China, analysts suspect there may be little change to this trend in the short-term.

However, with new mines springing up across the globe, including operations in Australia and Canada, there could be a significant impact on the rare earths by 2012, when many rare earth mining companies are expecting high output numbers, according to Resource Investing News.

China's recent reduction of imports will likely also affect the future prices of the metals, as the EU recently announced it was working to secure supplies of rare earths from places other than China.

"We are trying to improve our sourcing and reduce our dependence on China", said Andrea Maresi, press officer for EU industry minister Antonio Tajani.

One emerging market in the rare earths sector is found in British Columbia, as large deposits of the minerals have been discovered within the Rocky Mountain rare metal belt, a region that is readily accessible by logging roads.

Currently, there are many ongoing exploration projects being developed in the area, with a large abundance of epidote, titanite and vesuvianite found in the ground.

EU may stockpile rare earths after China reduces exports

Thu, 08 Sep 2011 18:05:08 GMT

After China announced that it would restrict global supply of its rare earth elements and introduce new quotas, the European Union is considering stockpiling its rare earth mixed carbonate for the future, Reuters reports.

China's sharp cut of exports has led western rare earth mining operations to boost production, hoping to fill the supply void that has opened, especially for Lanthanum and Cerium, which are used by petroleum refineries around the world, the news source stated.

"I have been approached by the EU about stockpiling. There is a task force that is looking over strategic materials and they have contacted me," said David O'Brock, chief executive of Molycorp Silmet, a top European rare earths producer. "They were surprised that we do tantalum and niobium, which are also strategic materials."

Elsewhere in the West, investors are scrambling to cash in on the new demand in places across Canada.

In Quebec, 56 percent of the potential deposits of rare earth elements outside of China could be laying beneath the service, which 41 exploration projects are hoping to tap in to.

According to Trade Arabia, the diversification of rare earth sources in the near future is likely to ease the world's concerns of a shortage caused by China.

China to stop rare earth production in three mines

Tue, 06 Sep 2011 16:34:07 GMT

Three major mines in China announced on Tuesday, September 6, that they will be halting extraction of rare earth elements, which will likely tighten the supply in the world's top exporter of the valuable metals, Reuters reports.

Director of the mining management bureau of Ganzhou city Li Guoqing stated that three of the country's eight largest rare earth mines will stop production for an unknown amount of time by the end of 2011, the media outlet stated.

According to the Mainichi Daily News, the Jiangxi and Inner Mongolia mines are two more of the major production bases in China that are also affected by the nationwide limits imposed by the state.

China announced that resource depletion and environmental degradation were the primary reasons for the nationwide slowdown of the metals, and stated that its 93,800 tons of production and 30,184 tons of exports can no longer sustain the demand of foreign customers, the news provider stated.

With China stepping away from the market, investing in rare earth in countries across the globe has begun to pick up. In Quebec, discoveries of new deposits have interested several other countries, such as Japan, which uses the metals in production of many high-tech devices.

India to renew rare earth mining operations

Thu, 01 Sep 2011 15:36:53 GMT

After seven years away from the industry, India has announced it plans to expand its export of rare earth elements by increasing domestic production of the in-demand metals, Mine Web reports.

According to the news source, the country has already allocated $32 million to develop a 5,000 metric ton processing plant in Orissa, hoping to further expand its latent rare earth mineral operations.

Concerns over China's new limits on rare earth exports have led the country to draft a strategy paper that would give impetus to explore and discover new deposits of rare earth elements.

India ceased its production of the minerals in 2004 due to lack of competition in the market, but now that technology has been developed that makes extraction of the metals highly efficient, the country has re-entered the rare earths arena.

Canada has also ramped up its production of rare earth metals, as Quebec Premier Jean Charest is currently meeting with Chinese officials to form an economic partnership regarding the mining of rare earths.

"It is my hope that the Canadian government, including the provinces, the Chinese government and the business sectors of our respective countries will endeavour to make this plan a reality," Charest stated.

Quebec to receive $80 billion from rare earth-starved Asian countries

Wed, 31 Aug 2011 19:29:08 GMT

Companies located in Japan and China are in the market for new rare earth metal supplies, and are currently reviewing an $80 billion regional development plan in Quebec, Bloomberg reports.

According to the new source, the Canadian province is full of metals ranging from gold to iron ore, and is hoping that a $47 billion investment in hydro power in the next 25 years will help add to the Canadian metals rush, providing power to the extraction operations.

"The Chinese are very interested," Quebec Premier Jean Charest said. "China Investment Corp. has an office in Toronto and there is an opportunity to work with them also."

The news provider stated that Quebec, which found large deposits of rare earth elements (REEs) about five years ago, has the potential to become a major production center for electric cars and laptops, which use technology derived from REEs, within the next three years.

REEs have been discovered across Canada, including British Columbia, where several rare earth mining companies have begun explorations for the metals in order to tap into the fast-growing market.

New market rare earths needed to bring down prices

Wed, 31 Aug 2011 19:21:49 GMT

In July, China, the world leader in rare earth elements (REE) exports, released its second-half rare earth export quota, revealing it had reduced its amount of exports, in comparison to its year-over-year doubling of the quota prior to the announcement.

Now, high prices may be the new norm, unless new rare earth mining operations become available, according to Resource Investing News.

The media outlet states that analysts, executives and industry insiders agree that demand is extremely high, and supply outside China continues to be tight.

New sources of REE are important because they have the power to control entire industries. Cerium, for example, nearly drove some producers of LED light bulbs to completely halt production, the media outlet stated.

However, new deposits of REE have been discovered in Quebec, and the province is currently in talks with different countries about investing in rare earth.

"We will encourage them to invest in processing, not only extraction," Quebec Premier Jean Charest recently stated. "That for us is very important and we are ready to support that."

Quebec is currently formulating a deal with Japan, the world's largest importer of rare earth's, according to Bloomberg.

End-users of rare earth metals venturing outside of China

Wed, 31 Aug 2011 19:16:08 GMT

A new chapter has begun in the rare earth element market, as some of the world's largest end-users of the precious raw materials have left China behind, seeking greener, less expensive, pastures, Investment U reports.

According to the news source, Siemens AG and Hitachi Ltd. have taken their business elsewhere, opening the door for smaller rare earth mining operations to strike deals with the massive businesses.

Siemens will be receiving its neodymium, used in magnets, from Australia, while Hitachi has entered into a three-year agreement with a company in the U.S. from which it will receive its didymium and lanthanum oxide.

The trend to find new sources of rare earths is likely to expand to many end-users, with an increasing withdrawal from Chinese exports, the media outlet stated.

Deposits of rare earth have also turned up across North America and Canada, with many new operations underway in Quebec and British Columbia.

The Rocky Mountain Rare Earth Belt in British Columbia is home to impressive exploration and development activities, and is located just 80 km northeast of Prince George, according to Rare Earth Investing News.

Quebec Premier wants to export rare earth to Japan

Thu, 25 Aug 2011 17:17:18 GMT

Quebec Premier Jean Charest says the province is more than ready to supply Japan with all of its rare earth element needs, and is currently on a trade visit to the country to further expand that possibility, the Winnipeg Free Press reports.

Charest will be in Japan for a few days, discussing ideas with politicians and business leaders and hoping to persuade them to take part in the quickly expanding rare earth metals market in Quebec, according to the news source.

"They have major needs," Charest said while in Tokyo. "It's a prosperous country. They are leaders in technology, and, like other countries, they have a private sector that has accumulated a lot of money for investment."

Japan, a leading producer in high-tech applications, has been getting the metals necessary for new-age electronics from China for years, but as the country has limited its exports, Japan is now looking for another provider, the media outlet stated.

Rare earths are extremely valuable, as they are essential for several new technologies. Havells-Sylvania has had to increase its light bulb prices due to a shortage, and having ordered its phosphors from China, is looking to buy elsewhere, according to Lighting UK.

Rare earth mining stocks may benefit from China's crackdown on illegal mining

Wed, 24 Aug 2011 16:55:23 GMT

China has recently been cracking down on the illegal mining of rare earth metals, which could boost the stocks of companies involved in the mining of the minerals around the world.

Xinhua, China's official news agency, reports that the village of Xianghu - located in the southeastern mountains of Fujian Province - has been affected by such illegal mining operations.

However, the efforts of the local government and the villagers themselves - a number of whom patrol the area - have been modestly effective in limiting illegal mining activity.

Fan Linyun, a local official, said that the crackdown has helped to increase the prices for rare earth.

"China has limited the exploitation of rare earth metals, so their prices have started to surge," he told the news source.

The increase in prices not only help China but rare earth mining companies around the globe as well. While the Asian country extracts the majority of rare earth materials, a number of promising finds are located around the globe, in particular in British Columbia and Quebec, which currently has more than 40 rare earth developments.

Seabed rare earth mining gaining popularity

Tue, 23 Aug 2011 13:05:40 GMT

As prices rise for rare earth elements (REE) in China, methods of mining the profitable metals are becoming more creative and innovative, with seabed mining becoming a very real option, according to Investment-U Research.

"Extremely rich" deposits of REE have been discovered on the seabed of the Pacific Ocean, spanning from Japan to British Columbia.

"The deposits have a heavy concentration of rare earths. Just one square kilometer of deposits will be able to provide one-fifth of the current global annual consumption," said Yasuhiro Kato, associate professor of Earth Science at the University of Tokyo.

The discovery was made after Japan decided to break its dependence on rare earth metals from China in March, when Japanese geologists discovered nearly 100 billion tons of the elements in the mud of the ocean floor, according to the BBC.

As China loses its monopoly on rare earth mining, investing in rare earth explorations has spread around the world, from the Pacific seabed to rich deposits found at sites in British Columbia and Quebec. The metals have become highly valuable, as their increased use in renewable energy technology has boosted demand.

U.S. defense aircraft uses Chinese rare earth, America soon to increase supply

Tue, 23 Aug 2011 13:05:28 GMT

A recent study conducted by the U.S. Defense Department found that 36 weapons that are utilized by the military use high-powered magnets that are produced from rare-earth elements that are, for the most part, imported from China. But American rare-earths are expected to supply an "adequate" amount by 2015, the Washington Examiner reports.

According to the news source, the study was ordered by Congress to determine which weapons relied on the neodymium iron-boron magnets, and found that many important and regularly-used devices implemented the rare-earth element technology. Included in the report were the Air Force's F-35 and F-22 jets, the Army's Bradley armored vehicle, the Navy's DDG-51 Destroyer and various different missiles.

Weapons created for the military by Lockheed Martin, Raytheon Co., General Dynamics Corp. and Huntington Ingalls Industries Inc. use 175 metric tons of neodymium iron-boron magnets every year, and by 2015, the Defense Department predicts the U.S. may possess all elements needed for production of the magnets, the media outlet stated.

In the wake of high demand in North America, rare earth mining has progressed dramatically in parts of Canada, including British Columbia and Quebec, where large deposits of rare earths have been found.

Mining limits in China drive rare earth investors away

Fri, 19 Aug 2011 13:03:52 GMT

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.

Several rare earth elements show massive potential

Thu, 18 Aug 2011 17:39:21 GMT

In a recent interview with The Critical Metals Report, independent investor Jason Burack spoke with commodities trader Kevein Kerr about rare earth elements, which have become essential in developing improvements for a wide range of devices, from smart phones to clean energy technology.

According to The Critical Metals Report, rare earth element (REE) space is the most complicated in the mining sector, as the process is complex and needs high amounts of infrastructure. However, investing in rare earth is a wise decision.

"REEs have an amazing amount of innovation upside right now." Burack stated. "Because of the innovations coming down the pipeline, the market has the potential to exhibit an annual double-digit growth rate."

Burack added that REEs offer far more upside than other commodity sectors, and display "amazing" growth opportunities for investors due to their ubiquitous presence in up-and-coming technologies.

Tantalum, for example, is a highly ductile metal resistant to corrosion, and when used as tantalum metal powder, enables the production of many different electrical components, according to the United States Geological Survey.

Several REEs, including tantalum, have recently been mined in parts of North America, including British Columbia and Quebec, with operations expected to increase in the near future.

Rare earth mining companies race to capitalize on rare earth elements

Tue, 16 Aug 2011 15:29:02 GMT

Rare earth elements (REEs) are not actually that rare, although the technology needed to mine them and the processes by which it must be done are expensive and difficult, leading to constrained supplies around the globe. The sector, however, has many companies digging up new ways to to mine the elements in an effort to cash in on the growing industry, Rare Earth Investing News reports.

According to the news source, China, which has held a monopoly on REEs, has begun to slow exports in order to satisfy domestic demand, opening up an immediate need for supplies and an increase in rare earth mining across the globe, including areas of Canada such as Quebec and British Columbia.

New technologies are the most significant factor in the rise in investing in rare earth and expanding rare earth mining production, as more efficient ways to harness the products are beginning to lift the constraint. One Canadian rare earth mining company has filed a slew of patents that it claims will be a breakthrough in the extraction of rare earths.

According to the Institute for Energy and Research, China currently controls 97 percent of the world's REE production, causing vulnerability in the supply and allowing for disruptions. However, the Quebec province is home to more than 40 rare earth development projects itself, making up much of the mining activity outside of China.

Rare earth elements sector offers more than just healthy markets

Tue, 16 Aug 2011 12:04:08 GMT

Rare earth elements (REEs) have seen success in the markets, but the alternative and highly pragmatic uses of REEs in various platforms keep the sector progressing, giving miners plenty to be thrilled about, RareMetal reports.

According to the news source, one new technology utilizing REE's is in the later stages of research and development, and when completed, will be used in the fast-growing solar energy industry.

New solar panels will contain a thin film that uses REEs in the energy conversion process, as they are more readily available and cheaper than other commercial materials. The technology is brand new and still patent-pending, and is expected to completely replace the typical semiconductor currently used in solar cells, the media outlet stated.

The technology was developed at the University of Nebraska in cooperation with NUtech Ventures, and organization which builds partnerships between the university and the private sector. The operation expects to employ 100 people, and will be set up in Beatrice, Nebraska, according to Silicon Prairie News.

Rare earths demand expected to increase through 2015

Fri, 12 Aug 2011 17:12:23 GMT

World demand for rare earths is expected to increase by 7.1 percent each year to a total of 180,000 metric tons in 2015, according to a new market research report compiled by Freedonia Group.

According to the report, sales of rare earths are expected to increase more than three-fold, from 2010's level of $3 billion to $9.2 billion in 2015. The main factors contributing to this spike are likely to include increased permanent magnet output and higher demand for electric vehicles and battery alloy.

Neodymium, a large deposit of which was reportedly discovered in northern Canada recently, is expected to drive the rare earth gains, according to the report. As such, investing in rare earth metals could prove beneficial, with rare earth metal stocks expected to experience tremendous growth over the next few years.

The study did say that rare earth prices are expected to peak around 2013, due to new entrants into the market beginning to operate at near-full production levels.

Discovered by an Austrian chemist in 1885, neodymium can be used in magnets, glass coloration and even green technology such as wind turbines.

Significant rare earth metals discovery made in northern Canada

Fri, 12 Aug 2011 17:11:58 GMT

One of the largest deposits of the rare earth neodymium in the world has reportedly been discovered at a Montviel property near the town of Lebel sur Quevillon, which is approximately 500 kilometers northwest of Quebec City, according to the Montreal Gazette.

The news source reports that rare earth elements such as neodymium are currently a hot commodity due to the fact that they are utilized in electronics and technological devices such as superconductors, electric vehicles and wind turbines.

The discovery perhaps indicates the continued strength of the rare earth mining sector in Quebec, as a previous CBC News article suggested that the province has more than 40 rare earth exploration projects in the works.

As such, investing in Quebec rare earth metals stocks is likely a prudent move, with a number of rare earth mining companies in the early stages of developing untapped deposits in the province.

According to the town's website, the small community of Lebel sur Quevillon was settled in the 1960s and boasts a population of less than 3,000.

China considering tighter rare earth exportation regulations

Fri, 12 Aug 2011 17:11:32 GMT

Chinese government officials and industry executives are reportedly in the process of discussing a number of potential measures that could tighten regulations on its exportation of rare earth metals.

According to The Wall Street Journal, officials have expressed concerns that higher global prices have increased smuggling and byproduct exportation.

With China having more than 90 percent of the global market for rare earth metals, the possibility that the country could tighten exporting regulations could make investing in rare earth mining companies in Quebec, Canada, more appealing. Rare earth metal stocks in Quebec can make for wise investments, as the province boasts more than 40 rare earth exploration projects.

Overall, Canada has more than half of the potential rare earth deposits located outside of China, according to reports.

With China looking to perhaps limit exportation of rare earth metals, the U.S. and Mexico recently issued a joint memorandum of understanding to the World Trade Organization, in which it claimed China was engaged in protectionism in its rare earth policies, according to the 21st Century Business Herald.

Atocha begins rare earth mining venture in Quebec

Thu, 11 Aug 2011 18:01:29 GMT

Natural resource company Atocha recently announced that it has begun its rare earth mining exploration in Tresor Nord, located in the Abitibi region of Quebec.

According to a release, the company's Tresor Nord property is located 13 kilometers northeast of the Montviel carbonatite complex in Abitibi. The Montviel complex, which is one of the largest in North America, and is a major source for the production of rare earth elements.

In fact, the release said, three of the most highly advanced rare earth projects currently in development are hosted by carbonatite complexes like Montviel.

The Atocha venture will reportedly include geophysical surveys and bark sampling, in order to collect and measure the rare earth metals. The results of such surveys will reportedly be released to the public when the company receives them, potentially boosting the company's rare earth metal stocks in the near future.

Like many rare earth mining companies, Atocha has made rapid progress since going public in 2009 and has five projects spread throughout Canada, according to the company's website.

Molycorp rare earth contract modification boosts shares

Thu, 11 Aug 2011 17:54:51 GMT

The shares of Molycorp, a producer of rare earth metals, increased more than 8 percent last week after the company announced a modification to a lanthanum supply contract to more accurately reflect the current rare earth oxide price.

According to Reuters, the contract modification, which took effect on July 1, will enable Molycorp to receive a higher maximum price for the lanthanum manufactured both this year and next year.

"This contract modification will help ensure continuity of fair pricing given current market conditions, a goal to which both parties are committed," chief executive Mark Smith said in a release.

The news source reports that through its rare earth mining ventures, Molycorp produces approximately 3,000 tons of the rare earths per year at its Mountain Pass mine in California.

Metal Pages reported that since the beginning of the year, the price of one kilogram of lanthanum - which is used in catalysts, batteries and as an additive in glass - has increased from around $50 to more than $150 through the end of July.

Analysts expect rare earth prices to drop

Thu, 11 Aug 2011 17:54:12 GMT

Rare earth prices are expected to drop, and could see values sink as much as 80 percent by the medium term, according to Mining Weekly. Meanwhile, shares are not expected to drop because companies set to produce them are currently undervalued.

“From a fundamental standpoint, we continue to see medium-term upside potential in the shares as we believe that the equities are building in a dramatically lower level of rare earth pricing,” said Anthony Young and Anthony Rizzuto to the news source.

Earlier in the year Goldman Sachs projected an overabundance of light rare earths like cerium and lanthium by 2013 because of companies starting projects in both the U.S. and Australia.