North Korea is China's rare earth reserves six times, or Chinese control support Kim Jong-un

According to U.S. media quoted - one based in the British Virgin Islands company as saying the world's largest rare earth resources possible in North Korea. They have established a joint venture to develop these resources. Analysts said the findings , if substantiated , will change the political landscape of rare earth market and Northeast Asia. But first intention Pyongyang must reform. And one surprise in China could "control" these resources. The following are excerpts of the article .

A geological study showed that North Korea has about 216 million tons of rare earth , these minerals can be used in smart phones and high-definition TVs and other electronic products. Once confirmed , this would make the world's known reserves of rare earth more than doubling . It will be six times that of China 's rare earth reserves , it will become the market leader.

Private equity firms SRE Minerals Ltd. announced last December findings and signed a term of 25 years in the North Korean capital Pyongyang northwest of Dingzhou development contracts rare earth. This is known as the Pacific Century Rare Minerals Ltd. joint venture, is a state-owned natural resources with the Korean joint venture trading company .

East-West Center in Hawaii researcher Bruce Scott told VOA video interview that North Korea not only the amount of rare earth shake China's position in the market , but also to improve the DPRK and the two largest importer of mineral Korea and Japan relationship. Bruce said: " If North Korea can start this project , to develop their own industries , it is likely to encourage its integration with its neighbors , and is no longer a black hole in the center of Northeast Asia . "

It has been estimated that North Korea has mineral resources worth trillions of dollars , Dingzhou project will be the first development of these rare earths. However, many problems remain to be solved.

Companies doing business with North Korea in dealing with this mysterious power, will bear great risks. The country's dilapidated infrastructure , poor roads and unstable energy supply is the challenge of this complex and expensive rare earth mining industry faces.

Even if the company successfully dug earth, it still faces challenges from the U.S. and UN sanctions for North Korea . North Korea poor working conditions , including forced labor, may cause foreign companies being sued for human rights violations . Pacific Century, said his company is an ethical standard , with a variety of process control mining companies , to ensure that it adhere to international standards.

Leonid Petrov Research Institute of Asia and the Pacific, North Korea researcher at the Australian National University . He said Pyongyang did not intend to make the necessary reforms in order to achieve the maintenance of foreign investment in Korea international requirements . Petrov said: "The two conditions for the survival of the regime is to continually create a crisis , and to maintain isolation. These two conditions may be impaired . A similar situation occurred in the 10 -year period of the two Koreas began sunshine policy of trade and cooperation, had some exchanges. But soon , they realize it is too expensive for South Korea , and for North Korea is too dangerous. "

China occupies 90% of the world's rare earth market share, almost in a monopoly position. When the Japanese government accused the Chinese government because of political tensions when export restrictions of rare earth prices soaring . After that, rare earth prices fell more sustainable level, but the Chinese government 's approach led to other sources of rare earth exploration .

Petrov said Pyongyang would not risk further open the country's mining sector , and will continue to be sold to Chinese mineral , that domestic elites to earn foreign exchange .

Petrov said: " So, I believe that rare earth metals will continue to be controlled by the Chinese government , and China 's economic influence will continue to provide military and logistical aspects of the protection of North Korea. China 's soft power will not betray the regime , because China North Korea as a buffer state . Therefore, these new findings will support the existence of this mineral regime . "

The U.S. Geological Survey is responsible for the mineral resource data summary that does not have enough information to comment on the importance of this statement . SRE mining company admitted that on the rare earth estimates only , have not been proven conceptual . In April it plans to further obtain the sample through a joint venture to better assess the number of North Korean possible rare earth resources.


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