Reinhard Bütikofer - "China Will Become a Net Importer of Rare Earths"
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- Category: Rare Earth News
- Published on Monday, 04 February 2013 16:54
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China and the EU are locked in a trade row over rare earths, chemical elements essential for manufacturing cell phones. DW discussed the dispute with Reinhard Bütikofer, member of the EU Parliament's Energy Committee.
DW: Mr. Bütikofer, a row over natural resources with China has escalated in the past couple months. The EU, together with the US and Japan, has filed a complaint with the World Trade Organization (WTO). What will come of that complaint?
Bütikofer: The case remains under adjudication. I would assume that a decision will be made over the course of this year. It would be foolhardy to speculate about a result right now. Even if the US, Europe and Japan are successful, I would assume that the case will be appealed, so we probably won't know before 2014 what the legal situation is.
What are the concrete allegations against China?
I'm not among those who think that the EU's approach is particularly clever. The accusations are related in particular to the export restriction that China has implemented for rare earths. More precisely put: When China joined the World Trade Organization, it promised not to implement exactly this kind of export restriction, and now Beijing is no longer honoring that promise. I am not competent to judge the merits of the case. My perspective is a political one. I fear that if the EU wins at the WTO, that it will be a hollow victory. I believe that we have to change our strategy to one of cooperation.
At the moment, it looks as if the EU and China are on two different sides of the issue. But the forecasts suggest that China will become a net importer of rare earths. In this respect, one can certainly imagine that - with the appropriate efforts - both sides could reach common ground.
China tries to halt rare earth price dive
China has a monopoly on rare earth production. Talk is of 97 percent. So who should China import from?
At the moment, China is absolutely in the leading position. But new rare earth deposits are being found in many different countries around the world: Vietnam, Mongolia, Kazakhstan, Namibia, Canada, Australia and the US. There are also deposits in Europe - in Greenland, for example. These rare earths are not rare at all. Only about 30 to 35 percent of the world's deposits are found in China. Other countries just haven't moved forward with extraction up until now, for a host of different reasons. But now they are moving forward.
That means that the situation is not as dire as it has been made out to be? Rare earths are neither rare nor scare?
Rare earths are currently scarce. Above all, the so-called "heavy" rare earths are not discovered so often. But geologically speaking, they are not scarce. And we are not at all in a situation where we can be blackmailed - where we either have to confront the Chinese or simply do what Beijing wants us to do. There are opportunities for diversification. There are technological possibilities that would allow us to use rare earths more efficiently. There are recycling strategies that were never considered in the past.
The Chinese, for their part, have a big problem with the extraction of rare earths, because there are a lot of negative environmental effects. To put it dramatically, it's really an environmental mess. The Europeans and Japanese have a lot of technology that could help the Chinese overcome these difficulties. In this respect, both sides could be quite useful to each other.
The governance of raw materials on the international level also has to be reformed. It's no longer just a few industrialized countries that have a demand for these materials. The regulatory framework needs to reflect the reality that more and more countries are developing their own industries. And Europe could seize the initiative there with China and with a few African countries.
Do you think Europe and Japan should help China develop its extraction technology, instead of suing Beijing?
The Japanese have already offered that. I believe that it's the right path. Naturally, such business has to be based on reciprocity. China could provide Europe with a secure supply of rare earths for the next 15 years and receive technological know-how in exchange.
Are there already discussions about such an arrangement?
There's even a working group that has been set up between Europe and China to discuss such questions. But unfortunately, the working group has - to my knowledge - never met, because the daily agenda could not be agreed upon due to some sort of diplomatic dispute.
Reinhard Bütikofer was the federal chairman of Germany's Alliance 90/The Greens. Since 2009, he has been a representative in the European Parliament and a member of the Energy Committee. He's been chairman of the European Green Party since 2012.
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Rare Earth Minerals Seeks Greenland Rare Earth Exploration Licence
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- Published on Monday, 04 February 2013 16:31
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Rare Earth Minerals said it has applied to Greenland authorities for a strategic 38 sq km mineral exploration licence.
It said the licence's northeast boundary was about 500m from a Greenland Minerals and Energy licence that hosted the Kvanefjeld rare earth element, uranium and zinc deposit.
Chief executive David Lenigas said: "This is a very strategic block in Greenland as it immediately abuts the world class Kvanefjeld rare earth/uranium/zinc deposit.
"We have been active in Greenland for some time securing acreage around the Greenland Minerals rare earth oxides deposits," he said.
"We see this whole regional play as becoming more valuable as GGG gets closer to completing their feasibility study."
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ALJ Bullock terminates investigation in Certain Sintered Rare Earth Magnets
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- Published on Friday, 01 February 2013 16:47
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ALJ Charles E. Bullock issued the public version of Order No. 44 (dated January 8, 2013) in Certain Sintered Rare Earth Magnets, Methods of Making Same and Products Containing Same (Inv. No. 337-TA-855).
According to the Order, ALJ Bullock granted a motion filed by Complainants Hitachi Metals, Ltd. and Hitachi Metals North Carolina, Ltd. (collectively, “Hitachi Metals”) to terminate the investigation based on withdrawal of the complaint as to Respondents TELEX Communications, Inc. (“TELEX”) and Electro-Voice, Inc. (“Electro-Voice”).
The motion was based on Bosch Security Systems, Inc’s (“Bosch”) assertion that TELEX and Electro-Voice are not separate corporate entities independent of Bosch. The Commission Investigative Staff supported the motion. Accordingly, ALJ Bullock granted the motion and terminated the investigation as to TELEX and Electro-Voice.
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Legislation Introduced to Urge Increasing Production of Rare Earth Elements in Alaska
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- Category: Rare Earth News
- Published on Friday, 01 February 2013 16:59
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JUNEAU-Senator Lesil McGuire, R-Anchorage, today introduced a resolution aimed at boosting the exploration and production of Rare Earth Elements (REE) in Alaska. Senate Joint Resolution 8 calls on Congress to support the efforts of Alaska to develop REEs for the benefit of the economic and national security of the United States.
“The United States used to be almost self-sufficient in rare earth elements, but now we almost completely rely upon foreign sources for those important minerals,” said Senator McGuire. “We need to move now to become a dominant world player in the development of rare earth elements which are critical for military and economic security, as well as renewable energy systems.”
China currently produces 95-percent of the world’s rare earth elements, but reduced the exports of those elements by 54-percent between 2005 to 2010, and then another by nearly 50-percent in from 2010 to 2011.
“It poses a huge risk to our national and energy security to be forced to rely on other foreign nations to manufacture our high-tech military equipment as well as our wind turbines, solar panels, advanced batteries, and geothermal steam turbines,” said Senator McGuire. “That’s why as a nation, we need to start developing and producing the rare earth minerals that we have in our own backyard.”The minerals are also needed for manufacturing almost all high-tech consumer goods including flat screen TVs, computers, tablets and cell phones.
“As China continues to withdraw its supply of rare earth elements from the world market, we need to be ready to fill those supplies or we will see devastating economic consequences,” said Senator McGuire. “On the flip side, building rare earth element research and production facilities here in the 49thstate will create new job and career opportunities for Alaskans.”
The resolution also calls for the state to work with several federal agencies including the United States Geological Survey, to identify REE deposits in the state, develop an REE information database, and promote the development of Alaska’s REE industry. Additionally, the resolution calls on state agencies that deal with permitting to expedite consideration and issuance of REE permits.
“So far, we have identified at least 70 sites in Alaska that contain rare earth elements. Several experts have said it is likely that Alaska has one of the most significant rare-earth prospects in North America,” said Senator McGuire. “If we play our cards right, this could secure our future as the lead supplier of America’s rare earth mineral needs.”
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Ucore Sets Sights on 2016 Production Start for Alaskan Rare Earth Project
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- Category: Rare Earth News
- Published on Friday, 01 February 2013 16:33
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Ucore Rare Metals, a junior explorer looking for rare earth deposits in North America, is aiming to commence production at its Bokan project in Alaska by 2016.
Citing a Ketchikan Daily News article, Metal-Pages reported that Ucore, which is focused primarily on its Bokan-Dotson Ridge rare earth element (REE) property, plans to commence construction of the mine by 2014, contingent upon obtaining the necessary permits, before beginning operation two years later.
In November 2012, Ucore released a preliminary economic assessment (PEA) for the project. It shows a before-tax net present value of $577 million and an internal rate of return of 43 percent — impressive economics in a struggling market environment.
In July of last year, the company’s CEO, Jim McKenzie, told Rare Earth Investing News that Bokan Mountain is the largest NI 43-101 compliant heavy REE resource on United States soil; as a result, it has enormous strategic implications for the US, especially given that heavy REEs are the backbone of some of the technologies that are most important to the country’s economic future (for instance, transportation, clean energy, defense systems and medical science).
He added that the project could help challenge China’s domination of the market.
“We view the rare-earth space as a sort of race … Obviously China is withdrawing product from international markets fairly aggressively, and the US needs this product,” Metal-Pages quoted McKenzie as saying.
The Bokan property is enriched with heavy REEs, including dysprosium, terbium and yttrium, according to the company’s PEA.
Outlook for rare earth juniors
At the 2013 Vancouver Resource Investment Conference, John Kaiser of Kaiser Research gave Rare Earth Investing News his take on which — and how many — rare earth juniors are likely to succeed. He noted that companies focused on heavy REEs have a better chance of survival, commenting that Quest Rare Minerals and Tasman Metals both have a good chance at success.
Market round-up
China’s praseodymium-neodymium oxide market is in deadlock and business is thin, according to a report by Metal-Pages.
Market sources confirmed that prices for 99-percent praseodymium-neodymium metal remain at around $64,370 to $65,980 per tonne — unchanged compared with last week’s prices.
A producer based in Northern China confirmed that it has halted production and will begin again following the Chinese New Year holiday.
“We have no new orders. The market will be stable before the Chinese New Year and we except prices to rise after the festival,” he said.
Lanthanum oxide business is said to be thin on the Chinese spot market, as optical glass producers, the main downstream consumers, have postponed buying.
Prices for 99-percent grade lanthanum oxide are in the range of $6,900 to $7,200 per tonne.
A trader based in Southern China confirmed that he will not be restocking because consumers are reluctant to buy at higher prices.
“We are staying on the sidelines for the time being because we will not restart production before March,” a producer in Southern China said.
China’s europium oxide market is stagnant, with prices unchanged as the Chinese New Year holiday approaches. Industry sources have noted that participants will focus more on the market after the holiday.
Company news
Great Western Minerals Group reported on the status of its diamond drilling program at Steenkampskraal.
Objectives of the program include step-out drilling to investigate extension of the main monazite zone; infill drilling on areas of lower data density to upgrade inferred mineral resources to the indicated category; and selected orientated core drilling for geotechnical analyses in support of planned underground developments, according to a press release.
In addition to the drilling, Great Western has initiated exploration activities on the surrounding prospecting right, a 550-square-kilometer area that encompasses Steenkampskraal and hosts historic occurrences of monazite at surface.
Search Minerals announced results from the NQ drilling program on its Pesky Hill prospect in Labrador.
A company press release notes that heavy REE-zirconium-yttrium-niobium vein-hosted mineralization was intersected and that 38 shallow vertical holes ranging from 26 to 50 meters in depth were drilled as part of the phase-one exploration NQ drilling program.
The release also confirms that the zirconium showing contains some of the highest grade heavy REE vein mineralization and is open at depth.
Texas Rare Earth Resources engaged a representative to help determine possible strategic alternatives for its Round Top project.
The representative was hired in response to a preliminary indication of potential interest from a multi-billion-dollar resource firm located in Asia, according to the company’s press release.
Texas Rare Earth’s CEO, Dan Gorski, said, “[g]iven the interest level in our unique Round Top project, the Board felt it necessary to engage a representative to further explore potential interest from Asia. Demand for heavy rare earth elements is expected to continue to outstrip supply in the years to come. Given that the vast majority of such elements are used in the Asian regions, it is logical that interest from the region could be quite robust.”
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