Rare earth metals war

Candium, yttrium and the lanthanides, it tell you nothing?

The emergence of a mining sector with high potential investment opportunities:

Strategic and irreplaceable.
Without rare earth metals, no hybrid cars, no iPhone, no Ipad, no LCD or Plasma screen, no solar technology, no lamps with low consumption LED. No national defense either (they are essential in the armament) and no effective oil refining.

Moreover 25% of the future new technologies will need the rare earth metals.

The rare earths are between the hands of Beijing.
China produces 95% of the world production of the highly strategic and irreplaceable rare earth metals.

 China’s Monopoly Over Rare Earth Element

China always exported its rare earth metals. But today, China wants to keep them for its technological future and thus reduces its exports.


Over the last seven years, China has reduced the amount of rare earths available for export by some 40%.

In 2007, exports were limited to 40 000 tonnes. A fall of 33%!

In 2009, 30 000 tonnes.

And the cuts should be more drastic in 2010!

In its 2009-2015 plan for the development of rare earth elements, Beijing wants to ban exports of dysprosium, terbium, thulium, lutetium and yttrium. Exports of other rare earth elements being strictly fixed to 35 000 tonnes maximum per year.

And I don't even speak about the taxes up to 25% on some rare earth metals.

In June 2010, China has new objectives:

- To close all the illegal mines and thus to remove illegal exports
- To put the extraction in hands of 3 to 5 large public companies.
- To unify the supply chain of rare earth metal.

So China will make the price and will control 100% of the market.

The rare earth metals world demand doubled over the seven last years and should still double from now to 2013.
Some even say that it could increase by 50% per year from 2010 to 2015!

--> So Rare earth production is or may soon be too low to keep up with growing demand, and rare earth metals prices may increase.

The rare earth metals are very important for the development of industries of high technologies, of defense, and all “green” technologies.
US policy makers should consider all options, including government incentives if necessary, to return US supply back to the point that it can satisfy at least US national defense requirements (Mountain Pass mines).
The United States started to redevelop its rare earth metals mine.

They have to be patient, to create, develop and put in production a mine can take 8-10 years.
But the operation will be very profitable.
It should also be noted that Canada also has large and high grade deposits under development.
 
Follow the investment opportunities in cobalt, vanadium and lithium.
Dacha Capital [TSX.V:DAC, OTCQX:DCHAF] is a relative newcomer to the rare earths sector.
Global X Lithium, an Lithium ETF.

Invest in ETF based on rare metals 
Article